Importance of Sustainability and Segment Reporting for Engro Corporation Limited

Financial Accounting
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Introduction
The present report is developed for providing an analysis into the importance of
segment and sustainability reporting for a business organization to ensure its ongoing growth
and development. This is done on the basis of the use of latest annual report of the selected
company in order to gain an analysis into the sustainability and segmental reporting
information. It analyses to the extent to which the selected company sustainable reporting
complies with the Global Reporting Initiative and IFRS 8 operating segments. It also
discusses the usefulness of sustainable and segmental reporting of the company to the users.
The company selected is Engro Corporation Limited, listed on Singapore Exchange, a leading
provider of delivering high quality building materials. It is having more than 40 years of
operational experience in manufacturing and distribution of cement based building materials.
As such, this report will provide information in relation to the sustainable and segment
reporting of the selected company in order to facilitate the end-users of report to take
pertinent decisions.
Sustainability Reporting
Sustainability reporting is a process used by business organizations for
communicating with the end-users about their social, economic and environmental
performance. This is required for building trust among the business stakeholders that is
required to promote the long-term growth and development of a business entity. It provides
an opportunity to the business organization to implement continual process improvement in
its core business areas and improving its sustainable performance. Also, the disclosure of
non-financial information related to the business sustainable practices in addition with the
financial information promotes the goodwill of an organization among its major stakeholder
groups. In this context, the Global Reporting Initiative (GRI) has provided international
independent standards to the business organizations for development of the sustainability
reports to ensure that all required information in relation to sustainability issues are disclosed
to the end-users (G4 Sustainability Reporting Guidelines, 2016).
Engro Corporation Limited places high emphasis on ensuring the protection of
environment from the negative impact of its daily business operations. In this context, it has
continued to strengthen its performance in the green initiatives to reduce the mission of
poisonous gases into the environment. It adopts the use of sustainable construction practices
by adopting the use of Singapore Environment Council’s or Singapore Green Building
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Council’s green cement and green concrete. This helps the company in development of green
buildings and reducing the significant impact of the carbon emissions on its daily
construction activities. The use of eco-labelling is helping the company to reduce the carbon
content of its cement products. It adopts the use of low-carbon ground granulated
blastfurnace slag (GGBS) tat is comparatively lower in carbon as compared with the
Ordinary Portland Cement. The company for reducing the emission of greenhouse gases has
also actively engaged in Singapore Institute of Manufacturing Technology. It complies
effectively with the ISO 14040/44 and the product carbon footprint guidelines as per the PAS
2050. It is also complying with the ISO 14001 environmental management system that has
provided the international accepted standards for efficient management of the environment
performance of business organizations (About Engro, 2018).
The company has also actively participated in a pilot study for analyzing the emission
of greenhouse gases as per the reporting standards of ISO 14064 carried out in support of the
Singapore Manufactures Association and Spring Singapore. This is mainly done in order to
report the greenhouse gas emissions in relation to its Singapore based operations. It is also
effectively following the ISO 14064 standard in order to achieve carbon neutrality and
achieving a balance between commercial and environmental considerations. It has also
developed Friends of Building Sustainability (FBS) that is an interactive platform provided
by the company for sharing the information in relation to the adoption of green practices. The
platform in support of Singapore Chinese Chamber of Commerce & Industry (SCCCI) has
initiated a seminar to discuss the use of low-carbon building materials in the construction
activities for meeting the needs of Singapore population (About Engro, 2018). The seminar
also discussed the cost-effectiveness of such materials and emphasizes on the use of green
steel and green concrete for construction activities that will protect the environment
degradation and will also improve the operational efficiency of construction companies
(Djajadikerta and Zhang, 2015).
The company also places high focus on developing the human capital in order to
improve its social performance. The social performance of the company takes into account
the activities carried out by it for promoting the social welfare of its employees, customers
and communities at large. Engro focuses on developing sustainable development of its
employees with placing focus on enhancing the well-being of employees by providing them a
safe and healthy environment. The Singapore operations of the company has achieved ISO
14001 and OHSAS 18001 certification in order to minimize the occurrence of any hazardous
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