Impact of Sustainability on Financial Performance: Research Project

This accounting research project examines the impact of sustainability practices and reporting on the financial performance of firms, focusing on ASX-listed companies. The research employs a qualitative and descriptive methodology, drawing on secondary data sources like annual and sustainability reports. The project begins with an introduction to sustainable business practices, followed by an analysis of relevant theories, including stakeholder theory and legitimacy theory. The study then provides an overview of the sustainability practices of ten ASX-listed companies, such as Rio Tinto Limited and Wesfarmers Limited. The research findings suggest that sustainability practices are crucial for long-term survival and growth. The project also discusses ethical considerations and the research methods framework, including the use of journal articles, books, and websites. The conclusion emphasizes the positive correlation between sustainability reporting and long-term growth potential for businesses.

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ACCOUNTING RESEARCH PROJECT
Name of the Student
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Author Note

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Table of Contents
a).................................................................................................................................................2
Introduction................................................................................................................................2
Relevant Theories.......................................................................................................................2
Analysis of ASX listed Companies............................................................................................2
Research Methodologies............................................................................................................4
Main Findings............................................................................................................................4
Conclusion..................................................................................................................................4
b)................................................................................................................................................5
Theoretical Framework..............................................................................................................5
Ethical Consideration.................................................................................................................5
Research Aim and Objective......................................................................................................6
Research Questions....................................................................................................................6
Research Methods Framework...................................................................................................6
Reference....................................................................................................................................7

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a)
Introduction
The practices of sustainable business are characterized by the environmentally-
friendly practices initiated by organization for the purpose of becoming more sustainable
organization. The practices of sustainable practices differ from industry to industry and are
specific to the type of company and service or product it produces (Weber 2014). Hence, this
research paper aims to analyze impact of sustainability on financial performance of the firm.
Relevant Theories
The markets are increasingly becoming competitive and pace of the changed
environment is putting the firms under pressure for only succeeding but also sustaining their
success into future. The sustainability of corporate has gained lot more attention in the recent
past years. It is because consumers, investors, companies are turning their attention towards
critical corporate sustainability. The companies are going beyond short-term as well as
narrow financial focus and they are giving more stretch on encompassing environmental,
social and economic sustainability. The development of corporate strategies for going well by
doing well as well as turning the firm into responsible organization, which care about the
social and environmental aspects is increasingly becoming must rather than choice for
leading in the future markets (Weber, Diaz and Schwegler 2014).
Analysis of ASX listed Companies
Following are the ten ASX listed companies and their approach towards sustainability
practices:
Rio Tinto Limited: The company produces material that is essential for the progress
of human, anti-microbial copper for the hospitals, aluminum for the smartphones and

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cars, borates for helping to grow crop, responsible diamonds that helps in celebrating
the enduring love. The company believes that they are part of sustainability solution
of world (Riotinto.com. 2019).
Wesfarmers Limited: This company believes that creation of long-term value is
possible only through playing positive role in communities that is served by company.
It is committed towards minimizing the footprint and delivering solutions, which
helps the community and customers for doing same. This has resulted in financial
growth of the company (sustainability.wesfarmers.com.au. 2019).
Woolworths Group Limited: This company is signatory to UNGC. The signatories
of UNGC embraces the set of core values in the areas of the labor standards, human
rights, anti-corruption and environment (Woolworthsgroup.com.au. 2019).
Telstra Corporation: The company remains committed towards being accountable,
ethical and responsible for their stakeholders. They are committed for creating strong
value-based culture (wpengine.netdna-ssl.com. 2019).
Coles Group: The firm’s strategy is focused towards sustainable products,
sustainable communities as well as sustainable practices of environment. Coles group
works streams under each of these pillars that is aimed towards addressing needs of
the customers as well as other stakeholders (Colesgroup.com.au. 2019).
BHP Billiton Limited: The practices of sustainability are ingrained in each of the
action taken by BHP Billiton, across the business. The company puts safety and heath
of their people first, invest in the host communities and they works towards the better
outcome of environment in areas where the company operates.
CSL Limited: This company understands the impact of their business from both
environmental and social perspective. They believe that they can take necessary steps

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towards the sound future for their people, industry and environment in which they
operate (Cslships.com. 2019).
Transurban Group: This company uses various processes for identifying material
issues for reporting that includes UN Sustainable Development Goals, GRI Standards
and feedback of stakeholders (Transurban.com. 2019).
Aristocrat Leisure: The CSR ratings of the company gives all level of perceived
performance on absolute scale of 0-100. It provides the perspective by rand ordering
the ratings of company against all the other ratings. The company has proven cutting-
edge research, which has led towards discoveries about relationship in between
reporting of sustainability and corporate conduct and reputation (CSR information for
Aristocrat Leisure Limited 2019).
Brambles Limited: The purpose of Brambles is for connecting the people with the
essentials of life every day. The work of company has always eliminated waste with
the help of supply chain (Brambles.com. 2019).
Research Methodologies
This research paper has used secondary sources of data. The method used is
qualitative and descriptive. Further, for analysis of sustainability issues, annual report and
sustainability report of ASX listed companies are used.
Main Findings
It is found through the analysis that sustainability practices have become necessity of
all the organization for survival. This helps the company for long-run survival. Further, it has
been found from the analysis of all ten ASX listed companies that they are following the
sustainability practices by reporting the way they serve the communities.

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Conclusion
Therefore, this research paper concludes that the company who issues sustainability
report, they are having greater scope of growth in the long run. Further, the sustainability
practices of ten ASX listed companies have been discussed, which shows that all the
companies are highly dedicated towards reporting sustainability.
b)
Theoretical Framework
Stakeholder Theory
The theory of stakeholders upholds that the firm is having accountability towards
broad ranges of the stakeholders, which includes government, employees, creditors,
customers, community and others. The integrated sustainability reporting helps in
strengthening the relationship in between the society and firm. Hence, if the interest of
stakeholder is ignored then it may affect the reputation of firm that would be again
unfavorable to the financial performance of company.
Legitimacy Theory
Legitimacy is the condition that that exists when value system of firm is in harmony
with society’s value system. Hence, as per this theory, it is essential for meeting the societal
expectations and norms fore ensuring the firm’s survival in long-run. The sustainability
reporting helps in reducing risk of regulatory actions as well as boycotts by the stakeholders
and it helps in strengthening license of operating firm (Martínez‐Ferrero and Frías‐Aceituno
2015).

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Ethical Consideration
During the whole process of research, ethical consideration has been taken into
account. The confidentiality of the information has been maintained.
Research Aim and Objective
This research paper aims to provide the overview of sustainability reporting concept.
Further, this research paper will also aim to study impact of the sustainability practices and
reporting on the financial performance of firm.
Research Questions
 What is the overview of sustainability reporting concept?
 What is impact of the sustainability practices and reporting on the financial
performance of firm?
Research Methods Framework
This research paper has used secondary sources of data. The research approach used
in this paper is both qualitative and descriptive. Further, various relevant journal articles,
books, websites and other reliance sources are used in this paper.

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Reference
Brambles.com. 2019. [online] Available at:
https://www.brambles.com/Content/cms/sustainability-2018/Sustainability_Review_2018.pdf
[Accessed 31 Dec. 2019].
Colesgroup.com.au. 2019. [online] Available at:
https://www.colesgroup.com.au/FormBuilder/_Resource/_module/ir5sKeTxxEOndzdh00hW
Jw/file/Coles_Sustainability_Report_2019.pdf [Accessed 31 Dec. 2019].
Cslships.com. 2019. Sustainability Report | CSL. [online] Available at:
https://www.cslships.com/en/our-values/corporate-sustainability-report [Accessed 31 Dec.
2019].
CSR information for Aristocrat Leisure Limited 2019 .CSRHub - Sustainability and
Corporate Social Responsiblity (CSR) ratings on over 32,357 of the world’s largest public
and private companies. [online] Available at:
https://www.csrhub.com/CSR_and_sustainability_information/Aristocrat-Leisure-Limited
[Accessed 31 Dec. 2019].
Martínez‐Ferrero, J. and Frías‐Aceituno, J.V., 2015. Relationship between sustainable
development and financial performance: international empirical research. Business Strategy
and the Environment, 24(1), pp.20-39.
Riotinto.com. 2019. [online] Available at:
https://www.riotinto.com/documents/RT_2018_Sustainable_development_report.pdf
[Accessed 31 Dec. 2019].

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sustainability.wesfarmers.com.au. 2019. [online] Available at:
http://2018.sustainability.wesfarmers.com.au/media/2467/sustainability_website_2018.pdf
[Accessed 31 Dec. 2019].
Transurban.com. 2019. [online] Available at:
https://www.transurban.com/content/dam/transurban-pdfs/01/sustainability-reports/FY19-
Sustainability-Data.pdf [Accessed 31 Dec. 2019].
Weber, O., 2014. The financial sector's impact on sustainable development.
Weber, O., Diaz, M. and Schwegler, R., 2014. Corporate social responsibility of the financial
sector–strengths, weaknesses and the impact on sustainable development. Sustainable
Development, 22(5), pp.321-335.
Woolworthsgroup.com.au. 2019. [online] Available at:
https://www.woolworthsgroup.com.au/icms_docs/195398_2018-sustainability-report.pdf
[Accessed 31 Dec. 2019].
wpengine.netdna-ssl.com. 2019.1u0b5867gsn1ez16a1p2vcj1- [online] Available at:
https://1u0b5867gsn1ez16a1p2vcj1-wpengine.netdna-ssl.com/wp-content/uploads/2018/08/
Bigger-Picture-Report.pdf [Accessed 31 Dec. 2019].