Sustainability Reporting and Stakeholder Impact: Bunnings Warehouse

This report provides an executive summary and analysis of Bunnings Warehouse's sustainability reporting practices. It examines the company's current initiatives, including recycling programs, product safety and ethical sourcing, energy efficiency measures, and community assistance efforts. The report highlights the implications of these practices for stakeholders in financial decision-making, emphasizing the importance of sustainability reporting in building trust and influencing stakeholder perceptions. The analysis covers Bunnings' approach to recycling, ethical sourcing of products, energy conservation, and community support. It also discusses how sustainability reporting impacts stakeholders, providing them with information to make informed financial decisions. The report concludes with recommendations for enhancing sustainability reporting and fostering a more sustainable business model, stressing the importance of internal controls and continuous improvement. The report uses Bunnings Australia as a case study to illustrate the practical application and impact of sustainability reporting.

CONTEMPORARY ISSUES

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Executive summary
The organization can succeed when it develops a strong trust in the mind o the stakeholder. To vouch for
such aims it is imperative that the organization must strive for sustainability reporting. Through
sustainability reporting, it becomes easier for the related parties to hunt for information. The main aim of
the report is to stress upon the concept of sustainability reporting and for this purpose Bunnings Australia
is selected that is owned by Wesfarmers. In the light of this company, the concept of sustainability
reporting is studied and a conclusion is generated.
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Contents
Introduction.................................................................................................................................................3
Current sustainability practices of the Bunnings Warehouse......................................................................3
 Recycling..............................................................................................................................................4
 Product safety and ethical sourcing.....................................................................................................4
 Energy efficiency..................................................................................................................................4
 Community assistance.........................................................................................................................5
Implication for stakeholders in financial decision making...........................................................................5
Recommendation........................................................................................................................................6
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8
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Introduction
The impact and dominance of a company over its stakeholders is necessary and also the respect of the
company in terms of positivity in the surroundings is important as well and all this is covered under and
by the term Sustainability Reporting. Thought the ones who have implemented the sustainability report in
their system may be less in amount, but the market is now at an uprising, which is acting together as in
accordance with the incorporation of the financial and the non-financial reporting (Thomas, 2016). It has
been always and mostly seen that a particular company likes to follow a particular method throughout its
existence (Caradonna, 2014). This concept has been built up with a dream so as to increase the profit-
making of all the stakeholders and at the same time makes advancement in the number of stakeholders
trading in the market. Also, the sustainability report acts as a track record and a to-be-achieved list which
marks the intentions of the performance of the company in the fields of social, economic, ethics,
governance and also environmental dimensions. Since 1994 the Bunnings Warehouse is being owned by
the Wesfarmers, and this warehouse is the largest known household hardware chin in the whole of
Australia. This research also brings to light the fact in which the sustainability report is seen to be used by
different companies so as to affect and alter the decisions of the stakeholders.
Current sustainability practices of the Bunnings Warehouse
As in relation to the matter of sustainability reporting, it is seen to not only act as a boon for the
stakeholders of the company but is also seen to be a positive thing to be put up in the company. The
companies also believe that the best way of taking decisions by stakeholders is by the use of this
sustainability reporting. This can be explained by the fact that every action by the company has an equal
reaction on its surrounding market as well. Maximum benefit to be provided to the stakeholders was the
eager intention of the Bunnings Warehouse which is why it implemented the sustainability reporting
method in its system. Though the implementation of the concept may be done a little late by the company
activities in relation to the same were started long in the form of saving energy and water and still
rendering possible healthy and quantity outputs for the company (Caradonna, 2014). The Bunnings
Warehouse can be seen to pay attention towards the matters like responsible sourcing, waste reduction,
active education, and various awareness initiatives so as to make the concept of sustainability reporting
positive. From the whole explanation, it can be successfully deduced that the company intends to water
and energy and to also minimize the waste products in order to uphold its sustainability priority. It can
also be seen that the Bunnings Warehouse works in a direction so as to create new pioneering ideas so to
relive the burden off the grid-source energy and to reduce the amount of carbon used in daily processes.
A major advantage and importance of the sustainability report is the fact that it is successful in covering
the loopholes which prevailed in the traditionally old reporting system and this why it is considered to be
the best in a class by both the company and its stakeholders (Scott, 2009). The company should pull out
some time to pay attention towards the sustainability reporting as it is healthy for the stakeholders.
Sustainability reporting also highlights the measures taken up by the company so as to safeguard the
environment and its resources. Sustainability reporting is the obvious reason for the increase in the
demand for the non-financial information (Kruger, 2015). It also acts as a way to increase the profits of
the company and the stakeholders.
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 Recycling
Bunnings warehouse pays attention to a large load of recycling items which is as per the sustainability
reporting. The three key rules of the ‘R’ are followed by the company to generate environmental friendly
items. These three ‘R’s’ are Recycle, Reuse and Reduce. Community groups and local councils also help
the company to recycle and reuse the materials as per their priority and the sustainability measures to
reduce waste. As per today, the company pays attention to the recycling of CFL that must not be thrown
in a public area due to the presence of mercury in it. Battery back programs check the use of old batteries.
Harmful and heavy metals persist in batteries that may hamper the soil. With the assistance of recycling
processes, the organization decreased its landfill waste to 2.9 tons in the year 2016.
Bunnings spreads awareness to reuse the old discarded timber pallets. The company also has contacts
with the Queensland and South Wales which are used to buy the discarded pine pallets and reuse them. A
plastic recycling program has also been taken up the company to reuse the discarded plastic strapping.
Renovating old building has also been a part of the company’s program in order to grow its dimensions.
These recycling programs are an important step towards the safeguarding of the environment by the
company. All this is done for a better future.
 Product safety and ethical sourcing
It was thought by the Bunnings Warehouse to keep working with its partners or suppliers and at the same
time increase the potential of the of the sourcing measures in accordance with Ethical sourcing program.
The company also keeps close communication with its suppliers so as to check that the delivered product
match up with their required standards. The company also invites auditing firms so as to get a clear view
of their undertaken products so as to check that if they match up to their requirements. The company also
checks the products on their level to make the product as per the expectations of the costumes.
 Energy efficiency
Rapid change in the climate is the cause of the increasing greenhouse effect due to the increase in
pollution, and this change in climate the most difficult challenge for the community. Bunnings Warehouse
hopes that by the correct use of the sustainability it can cope with the rapid change in climate by
deducting a number of greenhouse gases released (Wicks & Colle, 2010). Gases released by the company
have a dominating percentage of 85% from the use of electricity in stores and the remaining is from its
produced waste. The company is making efforts to reduce the electricity consumption which includes the
use of solar energy and also the installation of electricity reducing lights. The company has also made
efforts for trialed climate adaptive comfort heating and cooling systems in its stores, which is considered
as a more effective system for conservation of energy. All these measures have a natural air tempting
technology in them. This shows that the company is on a move to better the environment (Wicks & Colle,
2010).
 Community assistance
Helping the domestic areas, regional and national charities, and positive causes are included in the daily
schedule of the Bunnings Warehouse throughout Australia. A massive amount of $37 million was raised
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up by it stores from community strategies. Lions Australia, Rotary, local charities and others are some of
the non-profit making firms which are closely operated and provided assistance by the company. The
company has also paid heed to the areas which were struck with emergencies and contingencies in
association with the emergency services. Thus, the main target of the company is to generate an
environment in which the companies will work in alignment and offer profits and benefits to the general
public and the community. The company wants to leave its footprints with the kind of work it does for
the environment.
Implication for stakeholders in financial decision-making
It is obvious of the stakeholders to have keenness I the affairs of the company, especially the inputs and
the outputs of the company in terms of profits. It is seen that these stakeholders have the potential to affect
the rise or fall of the company as per their dominance in the company (Pearce, 2012). The implementation
of the sustainability reporting has led to the increase in belief in the company with facilitation in the
communication of ideas and data related values so as to make a better environment as a whole (Ballot et.
al, 2006). The Bunning Warehouse generally disclosed their effective measures against the risks in order
to pace up their business. Governments, businesses, shareholders all gain profits from the sustainability
reporting.
Stakeholders like shareholders, customers, suppliers can attain knowledge about the working of the
Bunnings and can have an idea about the measures of the company to expand in the future and helps them
to take their own financial decisions as well. Sustainability reporting helps in reducing expenses. Another
most important advantage provided by the sustainability reporting technique is that it assists in advancing
the system of the company to make it function in a more enhanced way and to effectively carry out it's
working (Ballot et. al, 2006). Bunnings can easily communicate with their investors regarding their KPI’s
and social impact in order to allow them in making relevant financial decisions. Despite all the working of
the company is shown in the financial statements, still, it is demanded by the stakeholders to show the
company’s attitude towards a higher economic system embedded in the sustainability reports.
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Recommendation
Going by the above analysis it can be recommended that the organizations, as well as accounting
advisors, must continuously seek an update in the area of sustainability reporting. It not only
enhances the overall system but brings vast credibility to the process of reporting (Perrini &
Tencati, 2006). Also, to enhance the effectiveness of the sustainability report, the organization
should have a strong command of the process of internal control so that it leads to a better form
of reporting. The strategies related to the internal control are important to the integrity of the
report and develops a strong trust between the management and the stakeholders (Ruffing, 2007).
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Conclusion
The efforts made by the Bunnings in and as to the conservation of the environment can be a perfect
example for the stakeholders to make crucial financial decisions in relation to the same. The efforts of the
company can be shown in the form of measures adopted by the company to improvise recycling and the
others relevant and environment-friendly programs. So it is obvious that these extra data acts as a boon to
the stakeholders which help them in taking crucial financial decisions. This also makes the picture of the
Bunnings more trustworthy. Loan offering financial institutions also demand the sustainability reports
before providing loans.
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References
Ballot, B., Heitger, D. L. & Landes, C. E. 2006. The future of corporate sustainability reporting:
A rapidly growing assurance opportunity. Journal of Accountancy, 20, pp. 65-74
Caradonna, J. L 2014. Sustainability: A History. Oxford University Press
Freeman, E & Alexander, M 2013. Stakeholder management and CSR: questions and answers.
Oxford Press
Kruger, P 2015. Corporate goodness and shareholder wealth. Journal of Financial economics,
pp. 304-329
Pearce, J.M 2012. The Case for Open Source Appropriate Technology. Environment,
Development and Sustainability, 14(3), pp. 425–431.
Perrini, F & Tencati, A 2006. Sustainability and Stakeholder Management: the Need for New
Corporate Performance Evaluation and Reporting Systems. Business Strategy and the
Environment, 15, pp. 296-308
Ruffing, K 2007. Indicators to Measure Decoupling of Environmental Pressure from Economic
Growth. London: Island Press.
Scott, C.M 2009. Green Economics. London: Earthscan
Thomas, S.A 2016. The Nature of Sustainability. Chapbook Press. Grand Rapids, Michigan
Wicks, H & Colle, D 2010. Stakeholder Theory, State of the Art. Cambridge University Press
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