Premier Investments: Environmental Accounting and Management Report

This report delves into environmental accounting and management accounting in the context of Premier Investments Limited. It begins by outlining the positive and negative environmental and social impacts associated with the company's operations, including packaging stewardship, waste and recycling, energy efficiency, community partnerships, and workplace safety. The report then identifies and discusses four key GRI disclosures relevant to Premier Investments' stakeholders, assessing the company's adherence to these guidelines. A comparison is drawn between Premier Investments and Myer regarding the quality and depth of environmental performance information. Furthermore, the study evaluates the benefits of widespread GRI compliance for Australian retail businesses, considering the perspectives of potential investors, current shareholders, and other stakeholders. The report also examines the costs associated with Smiggle and Peter Alexander's operations, analyzes cost behavior, and evaluates the usefulness of break-even analysis as a screening tool for new store openings. A balanced scorecard approach is applied to assess the feasibility of new stores. Finally, the report explores initiatives to enhance the break-even point and achieve profit targets.

Running head: ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Environmental Accounting and Management Accounting
Name of the Student:
Name of the University:
Author Note:

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ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Executive Summary
The main aim of the assignment is to highlight the concept of environment accounting and
management in accordance to the case study firm named as Premier Investments Limited. The
current study elucidates positive and negative social and environmental impact that links with the
case study firm. In addition, the study provides information about the GRI disclosures and
explains whether the case study firm properly follows and works in accordance to the guidelines
as mentioned in the report. Premier Investments decide to open a new store of Smiggle and Peter
Alexander in new places at UK, Asia and North America. In order to predict the growth plan and
feasibility, balanced scorecard approach is used for understanding the overall perspective from
the point of view of customers, financials, internal process and learning and growth. To that,
break-even analysis is even calculated to evaluate whether online services will be feasible idea or
not where customers will be able to look at wide range of options as well as customize their
products with their names as well. Therefore, the study had been broken into three parts where
each part explains one broad concept of Premier Investments operations and its plan for
upcoming financial year.

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Table of Contents
Introduction......................................................................................................................................3
Part A...............................................................................................................................................4
Overview of the environmental and social impacts (positive and negative) of Premier
Investments operations....................................................................................................................4
Positive environmental impact of Premier Investments..............................................................4
Negative environmental impact of Premier Investments.............................................................5
Positive social impact of Premier Investments............................................................................5
Negative social impact of Premier Investments..........................................................................6
Identifying and discussing four key GRI disclosures that are likely to be most relevance to the
stakeholders of Premier Investments...............................................................................................6
Comparing quality and depth of environmental performance information provided by Premier
Investments with the practices of Myer...........................................................................................8
Evaluating whether widespread compliance with the GRI guidelines by Australian retail business
that benefit potential investors, current shareholders and other stakeholders of Premier
Investments......................................................................................................................................8
Part B.............................................................................................................................................10
Identifying likely major costs associated with ongoing operations of Smiggle and Peter
Alexander.......................................................................................................................................10
Estimating the cost behavior (fixed, variable or otherwise) of each of the major costs identified10

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Critically evaluate whether use of break-even analysis would be useful and reliable screening
tool for Premier Investments Limited as they assess the desirability of opening up new stores in
new territories................................................................................................................................11
Balanced Scorecard of Premier Investments Limited...................................................................12
Part C.............................................................................................................................................14
Break-even.....................................................................................................................................14
Achieve an after-tax profit of $350000.........................................................................................16
Suggesting a number of possible initiatives that Premier Investments could implement in relation
to the Custom Finish Lab concept for enhancing the break-even point of annual profit..............17
Conclusion.....................................................................................................................................18
Reference List................................................................................................................................20

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Introduction
This study deals with analyzing the concept of environmental accounting and
management accounting in relation to Premier Investments Limited (Mitchell, 2016). Premier
Investments Limited is one of the Australian public companies that is limited by shares and listed
in Australian Stock Exchange in the year 1987. Premier Investments Limited was established as
an investment vehicle for maximizing growth in capital returns to shareholders through
acquisition of control over strategic shareholdings in premier Australian companies by focusing
on retailing, distributing and importing at the same time. Premier Investments Limited has
several brands such as The Just Group, Just Jeans, Peter Alexander, Jay Jays, Dotti and Smiggle.
The current assignment provides an opportunity to apply developing accounting as well as
financial management skills to the case firm known as Premier Investments Limited. Premier
Investments Limited operates in a range of retail fashion chains throughout Australia, Singapore,
UK, Malaysia, New Zealand, Singapore and Hong Kong. The current segment explains an
overview of the environmental and social impact of Premier Investments Limited operations. It
even identifies as well as discusses 4 GRI disclosures that are likely to be most relevance from
the perspective of stakeholders of Premier Investments Limited and evaluate whether these
information are valid or not. It is important to compare the quality and depth of environmental
performance information as provided by Premier Investments Limited with the practices of Myer
Holdings Limited. The next segment explains growth strategy where Premier Investments
Limited plans to open further Smiggle and Peter Alexander stores throughout Asia, UK and
North America. To that, balanced scorecard approach had been used as it clearly defines the
feasibility of new stores of Smiggle and Peter Alexander from the perspective of financial,
customer, internal process and learning & growth (Mitchell, 2016).

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Part A
Overview of the environmental and social impacts (positive and negative) of Premier
Investments operations
Positive environmental impact of Premier Investments
Packaging Stewardship- One of the positive environment impact of Premier
Investments is packaging stewardship (Low, 2017). To that, Premier Investments is
committed towards managing as well as reducing the impact of business operations that
have on environment. Furthermore, Premier Investments has submitted a 5 year Action
Plan that outlines objectives in relation to optimizing packaging for reducing
environmental impacts, increasing the collection as well as packaging recycling and
commitment towards product stewardship and implementing sustainable packaging
guidelines.
Waste and Recycling- One of the positive environmental impacts of Premier
Investments is waste and recycling. Premier Investments have extensive recycling as well
as sustainable practices in and across network stores, support center and distribution
centers (Batholomeusz, 2017).
Energy efficiency- One of the positive environmental impacts of Premier Investments is
energy efficiency. Premier Investments recognize the importance of energy efficient as
well as low environment that impact lighting systems and adhered to new improved
lighting standards for managing energy consumption in all their stores (Chang, 2015).

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Negative environmental impact of Premier Investments
At Premier Investments, they believe that the company will get active participation from
their employees so that they reduce environmental issues and make their business efficient as
well as drive customer and employee connection and that will lead in getting access to positive
impact in the communities in which the company operates. Premier Investments decide to reduce
environmental issues that they face in their operations and hamper the environment as a whole.
The environmental issues are related to packaging, waste and energy related attributes that need
correction on urgent basis (Modell, 2014).
Positive social impact of Premier Investments
Smiggle Community Partnerships- One of the positive social impact of Premier
Investments is building strong community partnership with their global partners.
Support Centre Charity- One of the positive social impacts of Premier Investments is
supporting centre charity events (Casazza, Liu & Ulgiati, 2016).
Attraction and retention- One of the positive social impacts of Premier Investments is
attraction and retention activities. At the end of financial year, Premier Investments
employed more than 6000 staff members in four countries.
Development- One of the positive social impacts of Premier Investments is development.
Premier Investments provide ongoing as well as regular training opportunities to their
employees for developing and supporting future aspiring leaders. At Premier
Investments, they held up to 100 training and development workshops that is led by
People and Culture managers and Senior Leaders (Järvenpää et al., 2016).
Reward and Recognition- One of the positive social impacts of Premier Investments is
reward and recognition. Premier Investments recognize and reward outstanding

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contributions both in terms of individual and team performance. Premier Investments
reward top stores and staff in and across all 7 brands globally.
Workplace safety- One of the positive social impacts of Premier Investments is
workplace safety. Premier Investments is committed towards preventions of workplace
injury as well as lost time. Premier Investments desire to create a culture where all
employees should feel accountable for all aspects of health as well as safety (Dillard,
Yuthas & Baudot, 2016).
Negative social impact of Premier Investments
At Premier Investments, they used to face various social issues in terms of safety,
security and development activities. In order to reduce the issues or concern, the above strategies
need to be used by Premier Investments so that they continue to develop and make Premier
Investments a great place to work, and great company in which team members can build their
careers (Christ et al., 2016).
Identifying and discussing four key GRI disclosures that are likely to be most relevance to
the stakeholders of Premier Investments
The Global Reporting Initiative (GRI) framework is intended to explain as a generally
accepted framework for reporting on economic, environmental as well as social performance.
The GRI Reporting Framework consist of general as well as sector-specific content by a wide
range of stakeholders in and across world to be generally applicable for reporting an
sustainability performance of Premier Investments. Premier Investments selects to introduce
reporting against the full GRO reporting framework from the outset. In addition, Premier

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Investments describes the scope of their reporting as well as encouraged to show their plans for
expanding their reporting period (Mellino et al., 2015).
Materiality- The concept of materiality is properly mentioned in the report of Premier
Investments that covers topics related to significant economic, social and environmental impacts.
Stakeholder inclusiveness- Premier Investments identifies their stakeholders and informs them
with presentation on matters relating to any changes that will take place in the business
enterprise.
Sustainability context- The performance of Premier Investments needs to be explained in the
report in the wider context of sustainability.
Completeness- In the report, material topics as well as indicators should be mentioned that
reflects upon significant economic, social and environmental impacts (Marvuglia et al., 2015).
Premier Investments acknowledge the importance of respecting their stakeholders that
include employees, shareholders as well as customers and suppliers. The above information is
taken from the annual report of Premier Investments and GRI reporting framework so that proper
linking of facts are possible. By above four key GRI disclosures, it is understood that Premier
Investments still need further improvements so that they compete with their closest competitors
who operates in the same sector (Ball, Grubnic & Birchall, 2014).
Comparing quality and depth of environmental performance information provided by
Premier Investments with the practices of Myer
Premier Investments Limited is one of the Australian retail groups that had purchased
10.8% in department stores owner Myer Holdings Limited. The shareholders of Premier

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Investments Limited have backed their stake at Myer Holdings Limited. Premier Investments
Limited controls 42% of the listed group as well as fortune last valued at $2.4 billion. Premier
Investments Limited is one of the sharpest retail strategists in and across Australia. Premier
Investments Limited controls 25% of the listed Breville Group that include brands such as
Breville Group and Kambrook. Myer Holdings Limited reflects the torrid conditions where
retailers are exposed to fashion and experienced in the lead-up as well as aftermath of the critical
period. In addition, the bottom line shows the increasing traction where the changes are applied
to gain shares of Myer Holdings Limited (Drury, 2013).
Evaluating whether widespread compliance with the GRI guidelines by Australian retail
business that benefit potential investors, current shareholders and other stakeholders of
Premier Investments
From the GRI guidelines, Premier Investments Limited retail group enjoys profit surge
on Smiggle. Premier Investments Limited deals in clothing and stationary and reports half-year
profits and sales growth is strong for upcoming financial year. Premier Investments Limited
made a net profit of $71.5 million (Machete et al., 2016). There was constant increase at 25.9%
on its profit from the same period. Premier Investments Limited owns clothing retailers that
include Just Jeans, Peter Alexander Jacqui-E and Jay-Jays. The shareholders of Premier
Investments Limited receive a fully-flanked interim dividend of 23% per share. To that, it
represents a 2% share increase as compared to other period of time. It was mentioned in the
report that Premier Investments Limited enjoys strong sales performance as well as targeted
capital investments and disciplined approach to cost labor, inventory management and rents that
allows posting sales records as well as EBIT result. Premier Investments Limited targeted total

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of 100 Smiggle stores to operate in UK by Christmas Eve. Smiggle UK opened 18 new stores in
the first half of the current financial year.
Smiggle stores performed very well where they enjoyed global sales growth of 46.5%
and UK was even progressing for that reason. At Premier Investments Limited, sales growth is
strong both in-store as well as online that proves the fact where the company believes in
delighting customers in and across all brands. There are consistent themes that categorize the
aspect that addresses to the shareholders at the time of annual general meeting in recent years. To
that, the first had been acknowledged by the extraordinarily challenging environment for
business especially in the Australian retail sector. The second theme had been reported to
Premier Investments Limited that enjoys outstanding performance in the adverse work
environment. Premier Investments Limited enjoys strong increase in profits that maintains the
strength of financial position as well as substantial cash reserves with all the available options.
Premier Investments Limited will continue to leverage the balance sheet capacity for funding the
expansion of growth brands that still retains their substantial capacity for pursuing opportunities
that rise in the upcoming financial year. The Board of Premier Investments Limited continues to
remain disciplined in its approach for investment purpose and believe that there are clear and
long-term benefits for the shareholders (Gray, Adams & Owen, 2014).

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Part B
Identifying likely major costs associated with ongoing operations of Smiggle and Peter
Alexander
The broad classification of cost associated with Smiggle and Peter Alexander are material
cost, labor cost, selling and distribution expenses, office and administrative expenses. To that,
the sale of Peter Alexander arrives at $100.7 million (Bouten & Hoozée, 2013). There is increase
in sales at 17.7%. In addition, online sales continue to grow off as the company has strong base
of information for future analysis purpose. New growth strategy is developed as well as
announced for Peter Alexander as they wanted to open further stores throughout Asia, UK and
North America.
Estimating the cost behavior (fixed, variable or otherwise) of each of the major costs
identified
The cost that is needed by Smiggle and Peter Alexander for carrying out operations is
printing cost, factory costs, labor, manufacturing costs. The brand continues to delight customers
as well as delivering a unique shopping experience in store and online activities. Smiggle was
other brand that Premier Investments Limited wanted to open where the sale arrives at $89.6
million by 14.5%. Premier Investments Limited focuses on new products as well as assortment
delivering results (Mokhtar, Jusoh & Zulkifli, 2016).