Evaluation of Sustainability Reports of AGL Energy and Origin Energy Limited

ACCT604-Managerial Accounting
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Executive Summary
This report is undertaken to present an evaluation of the key issues into the sustainability
reports of the tow companies operating within the energy sector of Australia. The companies’
selected for analysis purpose are AGL Energy and Origin Energy Limited. The findings of the
report have depicted that both the companies places high emphasis on developing and disclosing
relevant information about the approaches adopted for promoting social, economic and
environmental performance in their sustainability reports. They have maintained a good
performance in the key areas of sustainability and have also followed effectively the Global
Reporting Initiative (GRI) guidelines for development of sustainability reports.
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Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
1. Sustainability Strategy, Objectives or Principles.........................................................................4
2. Stated Reasons for Adopting Sustainability Approaches............................................................5
3. Effectiveness of reporting on key stakeholders, interests and engagement approaches..............6
4. Commentary on areas of strong sustainability performance of the company.............................7
5. Commentary on areas of weak sustainability performance of the company...............................7
6: Use of sustainability reporting framework by both the selected companies...............................8
7: External assurance, awards, ratings and other recognitions........................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
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Introduction
Businesses are increasingly placing emphasis on improving their sustainability
performance for improving the transparency and accountability within their business operations
that helps them in achieving the trust and confidence of the stakeholders. The sustainability
reports are developed for measuring and communicating the economic, environmental and social
impacts of an organization. The information disclosed through creation of sustainability reports
helps in promoting the goodwill of an organization among its stakeholders. This is because the
reports developed provide information about the measures adopted by an organization to address
its social economic and environmental issues (Chen, 2015). In this context, this report is
developed for providing a comparative analysis of the sustainability reports of the two
companies operating in the same industrial sector. The companies selected as such are Origin
Energy and AGL Energy Limited operating within the energy industry of Australia. It
comparatively examines the sustainability strategy, effectiveness of reporting on key
stakeholders, areas of strong and weak sustainability performance, use of GRI framework,
external assurance and sustainability rating of the two selected companies.
1. Sustainability Strategy, Objectives or Principles
AGL Energy Company
AGL Energy Ltd is an Australian listed public company involved in the generation as
well as retailing of electricity and gas for residential and commercial use. The company is
involved in providing energy products such as electricity, gas, solar and renewable services to
homes and businesses. The company places high importance on incorporating sustainability
performance into its long-term strategic plan and mission. The company’s sustainability strategy
is to undertake long-term responsibilities towards promoting the welfare of its customers, people,
investors, community and the environment. The objective of the company is to provide
affordable, reliable and lower-carbon energy solutions to all its customers. The long-term goal of
the company is to work actively with its stakeholders and develop a sustainable energy future for
the country (AGL Sustainability Report 2017, 2017). The company is highly dedicated towards
incorporating sustainability into its business operations for ensuring the protection of nearby
community and environment (McElroy, 2012).
Origin Energy Limited
Origin Energy is a recognized Australian listed public energy company involved in
providing electricity, natural gas, solar and LPG (Liquefied Petroleum Gas). The company is
involved in delivering high quality energy products to the customers in a manner so that it is able
to meet their present as well as future energy needs. The sustainability strategy of the company is
to explore innovative energy options to meet the future energy requirements of the customers.
The company aims to produce energy in a sustainable manner by exploring it through various
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