Comparative Analysis of Business Sustainability Reports: Origin & AEP

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This report provides a comprehensive analysis of the sustainability reports of Origin Energy and AEP Australia, two prominent companies in the energy sector. The report begins with an introduction to the significance of transparency and accountability in the modern business environment, highlighting the role of sustainability reports in communicating a company's efforts towards environmental and social responsibility. The core of the report involves a detailed comparison of Origin and AEP, examining their approaches to sustainability reporting, the range of issues they address, and their alignment with sustainable development goals. The analysis delves into the companies' strategies, values, and their compliance with stated objectives. The report explores the sustainability phases of both companies, evaluating the extent to which they reflect their stated values and address environmental concerns. The report identifies the differences in the issues faced by the two companies, such as the integration of renewable energy sources and the challenges of an aging workforce versus the impact of technological advancements and stakeholder expectations. The report concludes by reflecting on the insights gained from the comparative analysis, providing a clear understanding of the companies' sustainability practices and their commitment to corporate social responsibility.
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Running head: BUSINESS SOCIETY AND PLANET
BUSINESS SOCIETY AND PLANET
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Introduction
In the changing business environment, transparency and accountability are the two major
driving forces for the business organization to sustain in a highly competitive business
environment. The sustainability reports of the business organizations provide information to the
customers, clients and the investors to undertaking decision on which business organization to
support. The sustainability report helps to communicate the investors and the customer’s
information about the activities of the business organization and their efforts towards the
community (Assembly, 2015). The purpose of this report is to analyze and compare the values
and the approaches of the sustainability reports of the two selected companies, Origin Australia
and AEP Australia. It analyzes the ranges of issues dealt with by both the selected companies.
The report discusses on the sustainable development goals that are relevant to the business
organization and discusses on the extent to which the goals are addressed by the companies.
Further, it determines the sustainability phase of the two companies and discusses on the extent
to which the companies reflect their stated values. Lastly, it concludes the report by reflecting on
the understandings and perceptions developed from the analysis.
Discussion
1. Identification and description of two companies
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AEP Australia is associated with the business of offering wide range of specialized
services in Solar Power, Power management, water treatment plants and automation. The
company has partnered with experiences international suppliers with years of experience. The
company mainly targets the remote developing areas where there is deficit for power and water.
The company also offers turnkey solutions for the future developments and the current
developments. There are rapid changes in the energy industry influenced by technological
advancements, interconnectivity and innovation. The disruptive innovation has been reshaping
the energy industry along with AEP. It is the strategy of the company to grow and advance the
business as per the changes in the external business environment (AEP Sustainability -
Sustainability Reports. 2018).. The company mainly focuses on the large, centralized power
stations, manufacturing new capacity and applying various engineering practices to comply with
the laws and regulations of the environment and ensure sustainability. They focus on offering
customer solution through technology, diversification of resources for ensuring a more clean and
balanced portfolio (AEP Sustainability - Sustainability Reports. 2018).. AEP work along with the
regulators to and take initiatives to modernize the regulatory compliance and change with the
changes in needs and demands of the customers preparing for the future. On the other hand,
Origin Australia is one of the leading energy retailers in Australia. The main purpose of the
business organization is to provide energy to the consumers at a more affordable, smarter,
sustainable and in an easier manner. Origin supplies their customer with electricity, LPG, Solar
and natural gas. They also provide wide range of renewable energy options including wind,
solar and storage technologies (Sustainability - Origin Energy. 2018). Moreover, they offer range
of energy sources for generating electricity from fuels like natural gas, coal and other renewable
like sun energy and wind energy. Origin is one of the leading Australian integrated energy
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companies and it aspires to gain the topmost position in the renewable company in Australia. The
company strategically empowers the customers to minimize the carbon footprint through wind,
storage technology and solar. The future goal of the company is to support the global effort of
decarbonizing the environment. They play an important role in clean future energy. The long
term plan for Origins is net zero emission by 2050. Moreover, the actions of Origin are clearly
aligned with the objectives and goals of the government that is to reduce the operational costs
and prices of business and homes of Australia. Further, the company has been developing new
technologies for optimal energy utilization in business organizations and homes.
2. Differences between the ranges of issues dealt by the companies
As per Clayton & Radcliffe, (2018), it has been identified that AEP has been
facing issues with the constantly changing business environment and stiff competition in the
market. The company has been facing disruptions from the advancements of technologies and
other machinery. Moreover, the company has been facing issues with stakeholder expectations
and the company’s performance. The governmental laws and regulations are highly uncertain in
the country. However, AEP has effective and efficiency managed its business organization as a
part of their risks and compliance analysis. With this they have been able to meet the needs and
demands of the customers and potential clients (Griggs et al., 2013). The company has been
facing issues with the changes and difficulties of adopting itself to the changing business
scenario. The company also lacks sufficient financial issues as well, which lacks sufficient
support to work on new capital projects and this increases the level of complexity within the
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business organization (Isaksson et al., 2015).. These are some o the areas in which the business
organization faces issues. However, the efficient management of the organization enables the
company to carry out its business operations smoothly.
On the other hand, Origin Australia has been facing issues with integration of
renewable energy sources. It is the goal of the company to increase its supply side opportunities
which in turn incentivize the clients and the consumers to take part in electricity markets (Le
Blanc, 2015). The aging workforce of the organization and the declivity of talent available are
some of the issues faced by Origin Australia. Majority of the talents and skilled employee are
being absorbed by the high tech business organization (Nilsson, Griggs, & Visbeck, 2016).
However, the company has been focusing on building a better energy infrastructure and delivers
new and advanced technology along with custom energy solutions to the target customers.
3. Sustainable development goals
Considering the urgency and the scale at which the renewable energy are being deployed
for the purpose of meeting the global sustainable development and climate goals, it is very
essential for the organizations to understand its potential impacts in both the negative and
positive aspects (Penzenstadler & Femmer, 2013, March). The companies must incorporate
responsible and human rights respecting practices into the core activities and operations of the
business organizations. They must take initiatives to collaborate along with the potential
stakeholders of the business organization to amplify its impact (Roome & Louche, 2016). The
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companies need to carry out its business operations towards ensuring affordable energy by the
year 2030. This implies that they must invest in renewable and clean energy sources such as
solar energy, wind energy and thermal energy. They must adapt to the cost effective standards
and a wide range of technologies which would help the business organizations to reduce the
global electricity consumption in business organizations and homes by 14% (Bell & Morse,
2013). The companies can expand its infrastructure and implement latest and advanced
technology to offer clean and renewable sources (Roome & Louche, 2016). This is some of the
most crucial goal for the companies which will enable them to encourage growth and help
growing in the environment.
As per Thambidurai et al., (2015), the strategic goal and vision of Origin Company
mentioned in their sustainability report, the company prioritizes delivering customer experience
and solutions while accelerating towards clean energy. They prioritize focuses on developing
resources to meet the growing need for gas and fuel (Sloan, Klingenberg, & Rider, 2013). Origin
addresses to the sustainability standards goals as they mainly focus on delivering services and
products which matters the most. The company is also a major investor in the coal seam gas
industry and natural gas. Moreover, the company has hugely invested in renewable energy
sources and operates wind farms (Griggs et al., 2013). AEP Company has also been adhering to
the sustainable development goals. The main aim of the business organization is to innovate for
boundless energy future. The company has given extensive efforts to embrace technology and
digitalization for offering reliable and clean energy to its customers (Hák, Janoušková &
Moldan, 2016). They provide value to the shareholders and they are an example of positive force
in the community in which it serves.
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4. Sustainability phase
As per research and analysis, both the companies AEP and Origin are in compliance
phase. Both the companies seek to reduce the risks of litigation and destroy its publicity. The
companies being energy efficient companies, they abstain from the business activities and
practices which might damage the environment (Benn, Dunphy & Griffiths, 2016). Both the
company focuses on their continued efforts to reduce the carbon emission and generate more use
of renewable resources. The modern power grid of the companies is to achieve cleaner energy
future (Sustainability - Origin Energy. 2018). AEP and Origin both invests in renewable energy
and offers products and services associated with geothermal and solar technologies. Both the
companies acknowledge their minimal standards for their human resource efforts. Both the
organizations can be identified as a responsible corporate citizen. The business organizations are
responds to the legal requirements as well as the expectations of the society (AEP Sustainability
- Sustainability Reports. 2018). These strategies help the business organization to meet the
expectations of the all the community groups. These organizations tend to avoid wastage by
scrutinizing heat energy, water energy and materials energy. It is believed by Sloan,
Klingenberg, & Rider, (2013), that compliance adds value to the company by providing easy
access to finance and funds along with improves relationship with the regulators. This stage
helps the business organization to build a positive reputation in the society as a corporate citizen.
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5. Compliance of their stated values with social report
It is the value of the AEP Company to work towards social responsibility and transition to a
clean energy economy (Solow, 2014).. It is the mission and the vision of the company to help
families and other business enterprises to make a lasting conservation improvement which
minimizes the utilization of energy and reduce the power consumption. The sustainability report
of the company reflects the engagement of AEP with various stakeholders on the risks and
opportunities that are associated with the climate change (Griggs et al., 2013). The company
focuses on transitioning to a clean energy economy. The company reviews the targets and goals
of the company with the changing global needs and the advancement of technology. With the
advancement of technology the company has been further able to reduce emission. The carbon
emission of the company begins to decline with increased renewable energy and natural gas. The
company has been efficiently managing transition and is committed towards engaging with the
stakeholders (Nilsson, Griggs, & Visbeck, 2016). AEP has reported their efforts towards
attaining their climate goals. They measure the progress of their business operations directly as a
function of their carbon emissions. They indirectly measure their progress as function of their
less efficient generation capability and cleaner energy resources (Isaksson et al., 2015). The new
and advanced technology implemented by the company helps to increase efficient and reduce
carbon emission.
On the other hand, Origin Australia is highly dedicated to accelerate its corporate action
towards climate change (Clayton & Radcliffe, 2018). The company continues to make progress
on key areas including science based target and focus its improvement on public disclosures. The
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sustainability report of the company discloses their performance in various sustainability aspects
and they highly consider the interest to the stakeholders. The report reflects the commitment of
the company towards reduction of carbon emission and adopts a wide science based emissions
reduction target. Further, according to Le Blanc, (2015), the company has been leading an
advocate for climate change action as well as focus on progressive decarburization. Origin has
been working with other scientific experts in the areas of operations to research on the carbon
and landscape emissions and initiate changes attributed towards gas development activities.
Hence, they have complied with values and standards stated by the company.
Conclusion
Therefore, from the above analysis it can be concluded that both the companies AEP and
Origin has been giving equal effort towards sustainability while having an increased focus
towards reduction of carbon emissions. The report has identified various issues and challenges
faced by the companies. However, they have implemented their unique ways and dealt with the
issues effectively. Both the organizations have adhered to the sustainable development goals and
standards. They have an extensive as well as intensive approach towards embracing
advancements through automation and advanced technology. It has been analyzed that the
companies are in compliance stage of sustainability where they comply with the laws and
regulations and meet the needs and demands of the customers and the community. Further, the
sustainability reports of the companies reflects there adherence to their stated values.
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References
AEP Sustainability - Sustainability Reports. (2018). Retrieved 2 September 2019, from
https://www.aepsustainability.com/sustainability/reports/
Assembly, G. (2015). sustainable Development goals. SDGs), Transforming our world:
the, 2030.
Bell, S., & Morse, S. (2013). Measuring sustainability: Learning from doing. Routledge.
Benn, S., Dunphy, D., & Griffiths, A. (2016). Enabling change for corporate sustainability: An
integrated perspective. Australasian Journal of Environmental Management, 13(3), 156-165.
Clayton, T., & Radcliffe, N. (2018). Sustainability: a systems approach. Routledge.
Griggs, D., Stafford-Smith, M., Gaffney, O., Rockström, J., Öhman, M. C., Shyamsundar, P., ...
& Noble, I. (2013). Policy: Sustainable development goals for people and
planet. Nature, 495(7441), 305.
Hák, T., Janoušková, S., & Moldan, B. (2016). Sustainable Development Goals: A need for
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Isaksson, O., Bertoni, M., Hallstedt, S., & Lavesson, N. (2015). Model Based Decision Support
for Value and Sustainability in Product Development. In 20th International Conference on
Engineering Design (ICED), Milan. The Design Society.
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Le Blanc, D. (2015). Towards integration at last? The sustainable development goals as a
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Nilsson, M., Griggs, D., & Visbeck, M. (2016). Policy: map the interactions between Sustainable
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Penzenstadler, B., & Femmer, H. (2013, March). A generic model for sustainability with
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Sloan, K., Klingenberg, B., & Rider, C. (2013). Towards sustainability: Examining the drivers
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Solow, R. (2014). An almost practical step toward sustainability. In An Almost Practical Step
Toward Sustainability (pp. 11-28). RFF Press.
Sustainability - Origin Energy. (2018). Retrieved 2 September 2019, from
https://www.originenergy.com.au/about/sustainability/sustainability-reports.html
Thambidurai, M., Panchabikesan, K., & Ramalingam, V. (2015). Review on phase change
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