Dulux Group Ltd: Sustainability, Accounting Theory and Reporting

This report provides an analysis of Dulux Group Ltd's accounting theory and issues, focusing on sustainability and environmental reporting. It examines the company's background, relevant accounting standards, and conceptual framework elements. The report discusses the scope of sustainability reporting, key issues, and corporate accountability, highlighting Dulux Group Ltd's attempts to report social and environmental matters. It also explores the approach taken by the company towards sustainability reporting, including product stewardship and risk assessment. The analysis concludes that while Dulux Group Ltd follows sustainable environmental policies, it does not report under the GRI framework but adheres to its guidelines. The report also mentions attempts made by Dulux Group Ltd in research and development to manage risks associated with hazardous chemicals.

Running head: ACCOUNTING THEORY AND ISSUES
Accounting Theory and Issues
Name of the Student
Name of the University
Authors Note
Course ID

1ACCOUNTING THEORY AND ISSUES
Table of Contents
Part 1:.........................................................................................................................................2
Introduction:...............................................................................................................................2
Part 2: Sustainability and Corporate Reporting:........................................................................2
Scope of sustainability and environmental reporting:............................................................2
Key points and issues of sustainable social and environmental reporting:............................3
Responsible for corporate accountability:..............................................................................3
Attempts made by Dulux Group Ltd to report social and environmental matters:................4
Approach taken for sustainability social and environmental reporting:................................5
Conclusion:................................................................................................................................5
References:.................................................................................................................................6

2ACCOUNTING THEORY AND ISSUES
Part 1:
Introduction:
Dulux group is regarded as the leading marketer and manufacturer of the premium
branded products which enhances, protects and maintains the places where people live and
work. In the recent news article the company reported the growth for its investing business
that amounted to $165 million of plant and machinery. The company reported the sales
revenue of $1.84 billion representing the rise of 3.3 per cent growth in the sales revenue.
Concerning the accounting standard the consolidated financial statements of the
company are prepared based on the historical cost basis, except for the derivative financial
instruments, investment made in financial assets and the defined obligations that is measured
by Dulux Group in terms of the fair value. Commenting upon the accounting standards Dulux
group consolidated financial statements are prepared in accordance with the general purpose
financial statements that has been prepared in agreement with the requirements of the
relevant Australian accounting standards interpretation and the corporation act (Le Blanc,
2015). The company complies with the international financial standards and the interpretation
was issued by the international accounting standards. Based on the recent annual report
Dulux Group Ltd did not reported any accounting issues. The company is consistent with the
accounting policies that is used in the preparation of the consolidated financial statements.
Part 2: Sustainability and Corporate Reporting:
Scope of sustainability and environmental reporting:
The scope of Dulux Group Ltd corporate sustainability reporting framework, practices
and culture comprises of transforming a strong company which delivers values for all of its
stakeholders over the longer period of time (Carley and Christie, 2017). The scope of
sustainability report suggest that Dulux Group Ltd aims in creating a better places and spaces

3ACCOUNTING THEORY AND ISSUES
to live and work. The company does this by manufacturing and marketing wide range of
products which improves, protects and maintains those places and spaces. The company in its
sustainability report states that it is accountable for conducting its business in the sustainable
manner which is important for its stakeholders to earn and maintain the respect and trust for
all its stakeholders including those of the customers, societies, its environment and its
shareholders.
Key points and issues of sustainable social and environmental reporting:
One of the important key issue that is found in respect of the Dulux Group Ltd is that
the company does not follows the Global Reporting Initiative framework, despite the fact the
report has been prepared by the Dulux Group Ltd by following the reporting framework of
the GRI (Charles, Schmidheiny and Watts, 2017). The company over the years has incurred
problems related to its safety and it makes attempt to improve or progress in the direction of
sustainable goals so that it can further progress the performance and increase its participation
in the local communities.
Key points such as adoption of formal assessment of material risks has been
highlighted in the sustainability and environmental reporting of Dulux Group Ltd. The
company appears to remain committed in the direction of further enhancing its climate. The
company is also committed towards improving the climate related disclosure and adopting
the vital issues of the task force on the climate and financial disclosure.
Responsible for corporate accountability:
The board of Dulux Group Ltd is eventually accountable for steering the Dulux group
in the direction of business performance which is environmental, socially and economically
sustainable (Welford, 2016). According to the board of safety and sustainability committee it
mandatory requires the inclusion of oversight of Dulux Group sustainability goals and

4ACCOUNTING THEORY AND ISSUES
corporate performance. Sustainability leadership accountability is reinforced by the
integration of the sustainability considerations in its policies, auditing and reporting
procedure as well as decision making. The board of Dulux Group Ltd is also responsible for
creating a direct link between the executive remuneration and sustainability results in order to
drive the business towards improvement.
Attempts made by Dulux Group Ltd to report social and environmental matters:
In an attempt made by Dulux Group Ltd the company has extended its hand in
helping the communities for fighting against graffiti. During the year 2017 the company has
joined hands with the Sydney local resident and the artist in order to revitalise the king
Langley baseball club which is covered by the façade beautiful hand painted (Bendell, 2017).
With the help of Dulux precision anti-graffiti coating the mural is future proofed and would
be the part of the community in the years to come. The new precision relating to the anti-
graffiti plant helps in providing the preventing coating that would eventually help in
protecting the surface from graffiti.
The project undertaken by Dulux Group Ltd is treated as important for the company
because it helps in fighting with the issues related to graffiti (Nilsson, Griggs and Visbeck
2016). The company believes that it is the best way of contributing to the community which
would help in changing life and looking for the places. The attempt made by Dulux Group
Ltd is to make difference among the people in the society regarding the local places and
spaces.
Besides this it has also made an attempt in lending its support towards the Australian
science and innovation so that it can stay at the forefront of the technology and innovation
that is fundamental towards the creation of sustainable business.

5ACCOUNTING THEORY AND ISSUES
Approach taken for sustainability social and environmental reporting:
The company has taken product stewardship as the continuous approach taken for the
annual product risk assessment to recognize the areas of consumer safety, misuse of products,
post usage of consumers and raw material effects (Sachs, 2015). The product stewardship
approach taken is a drive towards sustainable social and environmental reporting by
implementing the lifecycle assessment tool. The stewardship procedure complements the
management and sourcing of chemical concerns risks.
Conclusion:
On a conclusive note, it is understood that the company follows the sustainable
environmental policies. Despite the fact that it does not report under the GRI framework but
it follows the guidelines issued by the framework. Furthermore, attempts have been made by
Dulux Group Ltd in the areas of research and development to manage the risks related with
the sustainable hazardous chemicals.

6ACCOUNTING THEORY AND ISSUES
References:
Bendell, J., 2017. Terms for endearment: Business, NGOs and sustainable development.
Routledge.
Carley, M. and Christie, I., 2017. Managing sustainable development. Routledge.
Charles Jr, O.H., Schmidheiny, S. and Watts, P., 2017. Walking the talk: The business case
for sustainable development. Routledge.
Le Blanc, D., 2015. Towards integration at last? The sustainable development goals as a
network of targets. Sustainable Development, 23(3), pp.176-187.
Nilsson, M., Griggs, D. and Visbeck, M., 2016. Policy: map the interactions between
Sustainable Development Goals. Nature News, 534(7607), p.320.
Sachs, J.D., 2015. The age of sustainable development. Columbia University Press.
Weaver, P., Jansen, L., Van Grootveld, G., Van Spiegel, E. and Vergragt, P.,
2017. Sustainable technology development. Routledge.
Welford, R., 2016. Corporate environmental management 3: Towards sustainable
development. Routledge.