Premier Investments: Environmental and Management Accounting Analysis

This report provides a comprehensive analysis of environmental accounting and management accounting, focusing on the case study of Premier Investments Limited, an Australian-listed retail company. The report begins by examining the positive and negative environmental and social impacts of Premier Investments, followed by an in-depth exploration of four key GRI disclosures: materiality concept, inclusiveness of stakeholders, sustainability context, and completeness of information. The study further investigates the feasibility of opening Smiggle and Peter Alexander stores using break-even analysis and the balanced scorecard approach. Part B delves into the major costs associated with the ongoing operations of Smiggle and Peter Alexander, approximating cost behavior and assessing the usefulness of break-even analysis for evaluating new store openings. The report concludes with recommendations for initiatives to enhance the break-even point of annual profit, specifically in relation to the Custom Finish Lab concept. The analysis includes a comparison of environmental performance information with Myer Holdings Limited and an assessment of the conformity with GRI guidelines within the Australian retail trade. The report aims to provide insights into the environmental and financial performance of Premier Investments and its strategic decision-making processes.

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

2ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Executive Summary
The present paper highlights the concepts of environmental accounting and management
accounting for the case study company known as Premier Investments Limited. The first part
explains about positive and negative environmental and social impacts for Australian listed retail
company named as Premier Investments Limited. The four key GRI disclosures are explained in
the study and these are materiality concept, inclusiveness of stakeholders, sustainability context
and completeness of information. The next segment finds out whether opening Smiggle and
Peter Alexander stores is feasible or not by using tools such as break-even analysis and balanced
scorecard approach.

3ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Table of Contents
Introduction......................................................................................................................................3
Part A...............................................................................................................................................3
Discussion of the environmental and social impacts of Premier Investments Limited...................3
Positive environmental impact of Premier Investments Limited................................................3
Negative environmental impact of Premier Investments Limited...............................................4
Positive social impact of Premier Investments Limited..............................................................5
Negative social impact of Premier Investments Limited.............................................................5
Highlighting four key GRI disclosures that are probably to be the most significant attributes to
the stakeholders of Premier Investments Limited...........................................................................6
Comparing quality and depth of environmental performance information between Premier
Investments Limited and Myer Holdings Limited...........................................................................7
Analyzing whether prevalent conformity with the GRI guidelines by Australian retail trade that
help in promoting potential investors, present shareholders and other stakeholders of Premier
Investments Limited......................................................................................................................10
Part B.............................................................................................................................................11
Highlighting probable major costs that are associated with ongoing operations of Smiggle and
Peter Alexander.............................................................................................................................11
Approximation of cost behavior (fixed, variable or otherwise) of each of the main costs
identified........................................................................................................................................11

4ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Critically assess whether use of break-even analysis would be helpful and consistent screening
tool for Premier Investments Limited where the company assess the desirability of opening up
new stores in new territories..........................................................................................................12
Balanced scorecard of Premier Investments Limited....................................................................12
Part C.............................................................................................................................................13
Break even.....................................................................................................................................13
Achieve an after-tax profit of $350000.........................................................................................14
Recommending a number of probable initiatives that should be implemented by Premier
Investments Limited in relation to Custom Finish Lab concept for enhancing the break-even
point of annual profit.....................................................................................................................16
Conclusion.....................................................................................................................................17
Reference List................................................................................................................................18

5ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Introduction
The current segment explains the concept of two major aspects such as environmental
accounting and management accounting (Zvezdov & Schaltegger, 2015). The associated
company that is discussed in the entire assignment is Premier Investments Limited that is listed
as one of the Australian public company by shares and listed in Australian Stock Exchange from
the year 1987. The company operates or act as an investment vehicle who focus mainly on
growth maximization that give capital returns to shareholders by acquisition of control over
shareholdings in topmost Australian companies. The company looks into several areas such as
retailing, importing and distributing of their products. The next segment clearly talks about the
management accounting part where importance of break-even analysis is explained as the case
was to find out feasibility on whether Smiggle stores and Peter Alexander stores can be operated
in UK, North America and Asia. The only approach that takes into account both financial and
non-financial measures is balanced scorecard approach is discussed in this section by keeping the
situation into consideration (Soderstrom, Soderstrom & Stewart, 2017).
Part A
Discussion of the environmental and social impacts of Premier Investments Limited
Positive environmental impact of Premier Investments Limited
 From the sustainability report of Premier Investments Limited, it is found out that
packaging stewardship has positive impact on environment as a whole. The company is
working hard for managing and reducing the impact of trade activities that hampers the

6ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
environment. In order to check over environment, the company submitted a 5 year Action
Plan that clearly defines the objectives related to packaging optimization for reducing
environment impact as well as collectables check and recycling of packaging where the
company is working towards product stewardship in accordance to sustainable packaging
guidelines (Sands & Lee, 2015).
 From the sustainability reporting of Premier Investments Limited, it is found out that
recycling of waste disposal has positive impact on the environment as a whole. In order
to keep a check on environment, the company deals in extensive recycling activities and
use sustainable practices in their stores, support center and distribution centres
(Radebaugh, 2014).
 From the sustainability reporting of Premier Investments Limited, it is found out that
effective use of energy has positive impact on environment as a whole. In order to keep a
check on the environment, the company realized the significance of energy efficient
techniques to be used and low environment activities that impact to improved lighting
systems and work in accordance to new lighting standards that can properly manage
energy consumption in their stores (Otley, 2016).
Negative environmental impact of Premier Investments Limited
Premier Investments Limited expects that their employees actively participate in
activities that can reduce several environmental issues and give access to efficient business and
customer satisfaction in positive way. Several issues are faced by Premier Investments Limited
and they are working towards reducing these environmental issues in relation to packaging,
waste and energy (Mokhtar, Jusoh & Zulkifli, 2016).

7ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Positive social impact of Premier Investments Limited
 From the sustainability reporting of Premier Investments Limited, it is found out that
Community Partnerships with Smiggle has positive impact on the society as whole.
Premier Investments Limited believes in maintaining strong community partnership with
their potential and existing global partners.
 From the sustainability reporting of Premier Investments Limited, it is found out that
Support Centre organized by the company act as a measure that has positive impact on
the society as a whole (Maas, Schaltegger & Crutzen, 2016).
 Premier Investments Limited believes in attracting and retention of best and experienced
talents and this is the reason why the company has more than 6000 employees who are
working in several countries under several brands.
 Premier Investments Limited believes in rendering training programs to the employees so
that they can develop and become future aspiring leaders. The company organized more
than 100 training and development workshops that is taken by People and Culture
managers and Senior Leaders.
Negative social impact of Premier Investments Limited
The company faces several social issues that relates to safety, security and development.
The company needs to follow the above-mentioned strategies to reduce the issues as far as
possible. The company should work best to make the company a better place where team
members are ready to build up careers (Houghton, 2013).

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Highlighting four key GRI disclosures that are probably to be the most significant
attributes to the stakeholders of Premier Investments Limited
This particular question highlights four important key GRI disclosures that will likely
provide relevance to the stakeholders for the case company Premier Investments Limited. The
GRI disclosures need to be properly understood to further explain about the four key disclosures
in detail. Global Reporting Initiative Framework can be treated as one of the frameworks that is
generally accepted framework that takes into account aspects like social, environment and
economic. The GRI framework in real explains general and sector-specific content as that guide
large number of stakeholders. The company actually had introduced full GRO framework from
the outset. The company had explained about the scope of reporting as well as highlights the plan
for expanding in the reporting period (Gray, Adams & Owen, 2014).
The GRI disclosures are taken from the 5.1 Sustainability Reporting where each of the
disclosures is explained with proper justification. Below is proper explanation of facts where first
two disclosures are taken from 5.1 sustainability and next disclosures are taken from 5.2
sustainability report. The four key GRI disclosures are explained below:
 Materiality concept- To explain in detail, materiality concept is the first GRI disclosure
taken from 5.1 sustainability report. The concept means that it has direct impact on
environment, economy and society as a whole. The concept should be adopted by
Premier Investments Limited as it helps the business to get access to information from the
owners, investors, regulators and lenders (Granlund & Lukka, 2017). This concept
increases the demand for transparent actions that impact on Premier Investments Limited

9ENVIRONMENTAL ACCOUNTING AND MANAGEMENT ACCOUNTING
 Inclusiveness of stakeholders- To explain in detail, stakeholder inclusiveness is the
second GRI disclosures taken from 5.1 sustainability report. Premier Investments Limited
should identify their stakeholders as well as inform them about any of the changes that
are planned by the company. These disclosures will guide Premier Investments Limited
for explaining the reporting content that is material to the business as well as
stakeholders. The GRI disclosures came into existence as a logical flow of activities on
how to make use of these disclosures in proper reporting activities. These disclosures will
help Premier Investments Limited to get access to ongoing as well as unstoppable process
in compilation with business report guidelines (Figge & Hahn, 2013).
 Sustainability context- To explain in detail, sustainability context is the third GRI
disclosures taken from 5.2 sustainability report. The company under study should be
taking into account several aspect of sustainability where they need to act ethically for
getting the benefits in the near future. The company unlike other companies believes in
providing satisfactorily returns to the stakeholders.
 Completeness of information- To explain in detail, completeness of information is the
fourth GRI disclosures taken from 5.2 sustainability report. The company should provide
complete and authentic information to the stakeholders as they had invested their money
in the business (Drury, 2013).
Comparing quality and depth of environmental performance information between Premier
Investments Limited and Myer Holdings Limited
It is important to consider both the company named as Premier Investments Limited and
Myer Holdings Limited. Here, Premier Investments Limited belongs to Australian retail groups

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that had purchased 10.8% in department stores from Myer Holdings Limited. In addition, it is
noted that shareholders of Premier Investments Limited have actually backed their stake at Myer
Holdings Limited. The company control more than 42% from the listed groups and fortune that
lasts valued at $2.4 billion.
Figure: Share Price of Premier Investments Limited
(Source: Dillard, Yuthas & Baudot, 2016)

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Figure: Share Price of Myer Holdings Limited
(Source: Dillard, 2014)

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Analyzing whether prevalent conformity with the GRI guidelines by Australian retail trade
that help in promoting potential investors, present shareholders and other stakeholders of
Premier Investments Limited
It is important to consider the fact that Premier Investments Limited has access to huge
profits that is taken from their brand Smiggle brands as mentioned in the GRI guidelines. On
analysis, it is noted that Premier Investments Limited primarily operates in clothing and
stationary items for preparation of half-yearly reports on matters relating to sales and growth.
Premier Investments Limited enjoys net profit at $71.5 million and there is even constant
increase by 25.9% on their profit in the most appropriate way (Deegan, 2016).