Wealth Wise Insurance: Sustainability Reporting Analysis

This report provides a comprehensive analysis of Wealth Wise Insurance's sustainability reporting practices. It examines the company's approach to environmental, social, and economic performance, including the use of key performance indicators (KPIs) across financial, social, economic, and environmental categories. The report details specific indicators such as gross profit, return on investment, employee satisfaction, and environmental impact metrics. Furthermore, it explores alternative performance measurement methods and suggests additional indicators to enhance the performance measurement system. The report concludes by discussing strategies to encourage staff to promote sustainability, emphasizing the importance of defining long-term objectives, fostering healthy competition, and integrating sustainability into the company's culture. The report highlights the benefits of sustainability reporting, including improved brand loyalty, increased profitability, and enhanced stakeholder relations.

Running head: BALANCED SCORECARD AND SUSTAINABILITY REPORTING
Balanced scorecard and sustainability reporting
Name of the Student
Name of the University
Author Note

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Table of Contents
Answer to requirement 1:...........................................................................................................2
Answer to requirement 2:...........................................................................................................3
Answer to requirement 3:...........................................................................................................6
Answer to requirement 4:...........................................................................................................7
Introduction:...............................................................................................................................7
Discussion:.................................................................................................................................7
Conclusion:................................................................................................................................9
Reference list:...........................................................................................................................10

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Answer to requirement 1:
Sustainability reporting is a report that is published by organization for disclosing
their environmental, economic and social performance caused by everyday operations and
activities. The governance model and value of organization is presented in the report that
helps in demonstrating the relationship between commitment and strategy to a sustainable
global economy (Bennett et al., 2017). Using the platform of sustainability, the
environmental, governance, economic and social is communicated, measured and understood
by organizations that enables them to manage the change and setting the goals in an effective
manner. Any positive or negative sustainability performance and their impacts are
communicated with the help of sustainability platform. Sustainability reporting is considered
as inherent element of integrated reporting that takes into account the analysis of both
financial and non financial performance. The assurance of the fact that organization considers
their impact on the issues of sustainability is provided by the value of process of
sustainability reporting. It helps the stakeholder and organization as a whole to be transparent
the opportunities and risks faced (Beare et al., 2014). Furthermore, there will be better
decision making with increased transparency that helps in maintaining and building trust in
governments and businesses.
Sustainability is considered as vital component for stakeholders such as employee,
shareholder for maintaining relations. For the assessment of efficiency and quality of
management, the disclosures concerning sustainability is considered by the assessor and in
competitive industries such as insurance, it serves as differentiator that helps in fostering
confidence among investors and generating loyalties and trust in employees. Adopting the
approach of sustainability reporting by the public listed entities would represent increased
reputation as the companies appearing on sustainability rankings is because of significant
sustainability reporting outcome. Sustainability approach helps in improving brand loyalty

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and reputation of organization by reversing and mitigating the negative impact of social,
governance and environmental performance (Buckingham & Goodall, 2015). Such reporting
by public listed companies helps in understanding the true value of organization, intangible
and tangible assets of organization by the external stakeholders. It can be seen that the
environmental management adopted by public listed organization Wealth wise Insurance has
helped in gaining customers and has become its marketing strength. Such sustainability
reporting has helped in generating higher net profits, increased asset base and higher market
value. Therefore, several reasons associated with sustainability report articulate why the
public listed companies should adopt the approach of sustainability reporting.
Answer to requirement 2:
The board of Wealth wise Insurance uses several key performance indicators for
assessing the performance of company. Such indicators include financial, social, economic
and environmental which are categorized differently.
Financial indicators:
Gross profit- The gross profit margin is the measurement is the amount of profit that
is extracted by the business of Wealth wise insurance from the total amounts of sales of
insurance schemes. This indicator is indicative of the fact that the good cost control has been
exercise and the products have been priced correctly (Dumay et al., 2016).
Gross insurance premiums- It is the total premium of an insurance contract before
the deduction of discounts and brokerage fees. It indicates the total turnover made by the
Wealth Wise insurance during particular financial year.
Return on investment- It is the performance measure that helps in evaluating the
efficiency of company by computing the benefits that is received by investors in relation to

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the total investment made in insurance company. Higher ratio is considered favorable to the
financial performance.
Economic indicators:
Practices, policies and spending on local suppliers- The policies and practices of
sourcing suppliers determines the strategy that is used for lowering the total costs and thereby
contributing to economic performance.
Procedures for hiring local staff- The procedures of hiring local staff depicts that
the insurance company has adopted the recruitment process that intends to hire local people.
It would enable organization to hire people from local areas. Recruiting local people would
help in cutting down the cost that is incurred in hiring people (Adams, 2017).
Development projects- Development projects undertaken by Wealth wise helps in
driving growth and gaining in competitive advantage which in turn help in retaining
customers and attracting new ones. The insurance company undertaking such projects
embodying insurance products helps in gaining an understanding of future of company.
Social indicators:
Employee satisfaction ratings- Rating the satisfaction of employees by Wealth wise
insurance helps in improving the level of engagement of employees by measuring the
feelings and emotions of employees. This particular indicator helps in measuring the
satisfaction of employees and contributes to social well being of employees.
Number of indigenous employees- The number of indigenous employees in the total
number of employees of Wealth wise Insurance indicates the contribution of employees in
improving the indigenous population well being.

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Customer ethical ranking of sales staff- When the sales staffs are ranked by
customers on ethical ground, then it promotes the morale and employees performance. In
such scenario, ranking of sales staffs helps in indicating the how important is ethics to
organization in terms of their performance. For the financial service institution such as
Wealth wise Insurance, the focus of customers is essential in highly changing market
environment.
Percentage of women in top three tiers of management- Women are less likely to
be in the top of management and inclusion of women in the board of management would help
in promoting empowerment of women which represents the improvement in social
performance.
Environmental indicators:
Tones of paper recycled per annum- The tones of paper recycled per annum
indicate the efforts taken by organization for green management. Recycling of paper per
annum represents that organization makes every possible efforts to remain green and promote
environmental sustainability (Chowdhary et al., 2014). Recycling of paper will help in saving
trees and maintaining ecological balance.
Percentage reduction in electricity usage- The reduction on consumption of
electricity indicates the organization is taking steps to reduce the impact of operations on
environment. Any negative externality by organization is tackled by taking the effort in terms
of reducing the consumption of energy.
Liters of fuel per dollar of sales- The liters of fuel per dollar of sales indicate that
efficiency of company in spending on the consumption of fuel. Wealth Wise insurance
intends to reduce the amount that is spend on fuel and thereby contribute to the management

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of energy and thereby maintaining environmental sustainability (Fonseca et al., 2014). This is
representative of the fact that company is environmentally sustainable.
Answer to requirement 3:
Some of the alternative performance measurement that could be included in the
performance measurement system of Wealth Wise Insurance can be categorized differently.
For measuring social well being of employees, insurance company can include indicators
such as participation of employees in decision making
The financial performance of Wealth Wise insurance can be assessed by developing
financial indicators such as revenue generated per policy holder, average cost per claim,
frequency, claim cost components and return on surplus.
Revenue per policy- It is the key performance indicator that helps in measuring the
total amount of revenue generation by Wealth Wise Insurance. If the revenue is generated
below average, it might be due to lack of sound investment policies, poor online and agency
sales.
Average cost per claim- This particular measure indicates the payment by
organization for each claim that the customers file. It helps organization in assessing the risks
associated with each policy by accordingly adjusting the price of policy.
Claim cost components- This particular metric helps in tracking cost associated with
significant controllable elements such as report delays, legal costs and time to settle.
Frequency- It is the total number of claims that is expected based on the claims made
by customers. A low frequency indicates that loss is expected but has rarely happened in
future.

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Return on surplus- This particular measure the total amount of profits that can be
brought by Insurance Company relative to generation of revenue.
Economic indicators:
Average size of policy- The average policy size is given by the price and size of all
policies by the total number of policies sold during a particular time period. It helps in
determining the operational excellence that helps in evaluating the fact whether strategy of
company aligns with the risk profile (Van Dooren et al., 2015).
Growth of policy sales- It helps in measuring the total number of new policies that is
sold by organization over a particular time period by making comparison to target value. The
growth in policy sales has a direct relationship with total amount of sales made. Whether the
organization is hitting the sales target or not is determined by this particular metric
(Barkemeyer et al., 2015).
Answer to requirement 4:
Introduction:
The report is prepared to be represented to the chief executive officer of Wealth Wise
Insurance for demonstrating the methods that would encourage staff to behave in a manner
promoting sustainability. Wealth Wise Insurance is a financial institution that is actively
engaged in the promotion of environmental management by improving environmental and
social practices (Mone & London, 2018). It is required by the Insurance Company to take
some efforts and implement the practices that is designed to encourage staffs to support
sustainability.

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Discussion:
Finding ways to get all employees from top management executives to line managers
in creating sustainable company by defining the long term objectives of company, creating
competence and sustainable knowledge, encouraging healthy competition among employees
and making them personally engage in day to day efforts relating to corporate sustainability.
It is utmost essential that the sustainability economic case should be spelled out to employees
as it helps them in gaining an understanding of the environmental drivers associated with
societal and business benefits. Taking sustainability initiatives also requires expertise and
specialized knowledge such as employing eco efficiency tool and taking about sustainable
sourcing by suppliers. Hence, Wealth Wise Insurance is required to make investment in
training and development as well as process and systems. Moreover, as a part of development
of leadership in promoting sustainability, there should be personal involvement of senior
executives in sustainability issues. This would help in eliminating distance between
perception in the business interest and personal values of people. Furthermore, a culture of
healthy competition among of employees can be promoted by fostering by setting new goals
and embracing the sustainability spirit (Melnyk et al., 2014). The legitimacy and credibility
within employees for sustainability can be built by external engagement.
The system of performance management is used by organization for tracking the
performance of organization by setting a target that will help in implementation of growth
strategies. Measurement business performance seeks valuable information that requires
assessment of different areas that helps in determining the overall success of business. it is
required by organization to place equal importance on both financial and non financial
metrics in the performance management system (Hahn & Lülfs, 2014). Developing the
balanced scorecard provides a comprehensive view of business as it is a leading edge of
performance management. It is attributable to the fact that such balanced scorecard

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incorporates different metrics. There are four different perspectives involved in the balanced
scorecard for measuring the performance of company that aligns with their overall goals. It is
so because such scorecard is so balanced that it helps in meeting several needs of the
managers of organization. Such performance measurement system incorporating different
measures helps in achieving objectives and goals that ultimately contributes to assessment of
business performance (Grace et al., 2014).
Conclusion:
From the analysis of given case of Wealth Wise Insurance, it can be inferred that
company has experienced increased profits and return on assets due to their increased
initiative on environmental sustainability management. The current performance indicators
help in assessing the overall performance of company. However, there are some alternative
performance measures especially in financial indicators that are recommended. It would help
in measuring the financial performance of Wealth wise Insurance by incorporating such
financial and economic indicators. In addition to this, the system of performance
measurement would help in achieving the objectives and goals of organization by adequately
designing the performance indicators.

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