Kaplan University: MBA402 Sustainability Assessment Report - Finnegan

This report presents a sustainability assessment of Finnegan Constructions, adhering to the GRI Sustainability Reporting Standards 2016. It evaluates the company's performance across economic, environmental, and social dimensions. Economically, the report examines climate change risks and opportunities, confirmed corruption incidents, and legal actions related to anti-competitive behavior. Environmentally, it assesses energy consumption, impacts on biodiversity, and non-compliance with environmental regulations. Socially, the report analyzes employee turnover, incidents of discrimination, and the company's engagement with local communities. The assessment reveals specific instances of non-compliance, legal issues, and areas for improvement, providing insights into Finnegan Constructions' sustainability practices and offering recommendations for future enhancements. The report follows the triple bottom line approach, reviewing the economic, social and environmental impacts of the organisation based on the ESG metrics. The report also suggests the organisation's future plans in order to improve its sustainability.

Running head: SUSTAINABILITY ASSESSMENT REPORT
SUSTAINABILITY ASSESSMENT REPORT
Student’s name
University
Author’s note

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Introduction
With the enhanced concerns for the United Nation’s agenda of sustainable
development goals being implemented, the practice of sustainability assessment is becoming
imperative, and quiet popular across all sorts of corporate organizations. Sustainability, in its
entirety, refers to the consideration of environmental, social and economic issues pertaining to
the operations and policies of corporate organizations. In this sense, sustainable development is
regarded as the effective alternative to the traditional economic development. To ensure such
sustainable development for the entire mankind, corporate enterprises ought to comply with
certain responsibilities. Moreover, to establish sustainability as the guiding principle in all their
policies and practices, corporates should assess their activities in timely interval with adequate
attention to social, economic and environmental impacts and subsequently declare them to all its
relevant stakeholders (Maas, Schaltegger and Crutzen 2016).
According to Sala, Ciuffo and Nijkamp (2015) sustainability assessment is
considered to be one of the most complex types of appraisal methodologies. This form of
appraisal effectively supports policy making and decision making procedure of an organisation.
In purview of the significant role of sustainability assessment in the organisational operations,
several tools, models, frameworks and indicative systems have been proposed to assess the
informed decisions on sustainable development. To be able to assess effectively, the appraisal
method should follow the “The New Bellagio STAMP”, consisting of guiding vision, adequate
scope, essential considerations, effective communication, indicators and frameworks, as well as
transparency (Opoku 2019).

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Among many systematic framework of sustainability assessment, the GRI
standards have been recognized as the most accurate assessment guidelines for sustainability
reporting. It provides information regarding an organisation’s negative or positive contribution to
achieve sustainable development.The framework allows the assessing agency to appraise the
policies and practices as per the environmental, social and governance costs and benefits (ESG
Metrics) resulting from the operations of the reporting organisations. The reporting measures
usually encompasses the quantified results of working conditions, payment and benefits, carbon
emission, water and carbon footprint, energy consumption, financial and governance
transparency etc. (globalreporting.org)
The present report is an attempt to assess the policies and practices of Finnegan
Constructions. The reporting assessment will follow the GRI sustainability reporting standards of
2016. The assessment method will adhere to the triple bottom line approach, reviewing the
economic, social and environmental impacts of the organisation based on the ESG metrics.
More specifically, it addresses topical issues as per the topic specific GRI sustainability
standards.
A. Economic sustainability
i) Disclosure 201-2: Financial implications and other risks and opportunities due to
climate change
According to Edenhofer (2015), the severity of the climate change have the potential to
disrupt the financial operation of the company. Subsequently, risk and opportunities caused by
climate change can result is substantive alterations in operations, expenditure or revenue
generation of the organisation. This disclosure stipulates the organisation to describe the

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opportunity or risk and subsequently classify them under regulatory, physical or other; followed
by the description of the impact related to the risks and opportunities before the attempt to
mitigate them, as well as methods and cost to the actions taken.
The sustainability assessment of Finnegan Constructions states that the organisation has
undertaken a comprehensive work plan pertaining to risks and opportunities arising from climate
change. In the proposed Local environment Plan, the organisation has decided to rezone the
construction sites in the Stanwell district within the next 6 months, as it is declared to be bushfire
prone zone. The organisation has also undertaken a project to enhance safety measures to meet
the higher standards of bushfire safety. The assessment report forecasts that the proposed
amendment in the LEP could cost $4 million, as well as the Town Planning firm would charge an
additional $50,000 for their consultancy. Hence, it could be said that the organisation has the
provision for a clarified timeline and projection of financial implication in their sustainability
reporting.
ii) Disclosure 205-3 Confirmed incidents of corruption and actions taken
The theme of this particular disclosure is subject to the fair governance
policy of the organisation. Under the section, the company should report the total numbers and
nature of confirmed incidents of corruption (205-3A), total numbers of action taken in the form
of dismissal or suspension of employees (205-3B), or other disciplinary actions such as
termination of contracts with partners (205-3C) and public legal cases regarding the
organisation’s engagement in corruption (205-3D) during the reporting period.
(globalreporting.org)
Finnegan Constructions reported that there has been a public legal case against two
business partners and five employees of the organisation. The complaint placed by David alleged

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that the five individuals as well as the two external consultants offered bribe to the council
project officers in order to push the organisation’s development application through the process
of council approval. The report also stated that, upon the prosecution, the employees have been
suspended without any benefit, whereas the partnership with the external consultants have been
terminated with immediate effect.
iii) Disclosure 206-1 Legal actions for anti-competitive behaviour, anti-trust, and
monopoly practices
As per the GRI standards of declaration 206-1, the reporting organisation
should make public the information regarding the number of incidents pertaining to legal actions
(pending or completed) against the organisations for not complying with anti-corruption, anti-
trust or anti-monopoly legislations. (globalreporting.org)
During the reporting year, Finnegan Constructions disclosed that the Australian
Competition and Consumer Commission (ACCC) has been taken up legal objections against the
organisation in accordance with David’s complaint for violating anti-competitive conducts. The
ACCC alleged that the organisation engaged in establishing monopoly over new entrants in the
local construction sector. They had threatened their partnering contractors and suppliers to lessen
or terminate their contracts if they cooperated or engaged in business with the new construction
organisation formed by the local builders. Thus, Finnegan Constrictions evidently misused their
jurisdiction of exclusive dealings and market power with the purpose of preventing or deterring a
new market entrant and lessen competition, thus trying to establish a monopoly. The case is
awaited to be heard in the Federal Court within the next four months from the time of reporting.

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B. Environmental sustainability
i) Disclosure 302-1 Energy consumption within the organisation
As per the GRI standards, the requirements for this specific disclosure is to
declare the total amount of fuel consumption for the operations and activities of the organisation,
including both renewable and non-renewable energy sources in the form of joule units or its
multiples. It also has to disclose the fuel type used, including the total amount of water,
electricity, heating, cooling or steam-- consumed or sold. It should also specify the standards,
metrics, methodologies or calculation tools used to quantify the amount of energy usage.
(globalreporting.org)
The report of Finnegan Constructions reveal that the organisation is an energy efficient
company. The report is furnished with specified units of energy consumed in the multiples of
joules unit, along with the type of energy it used in the reporting period. It states that the
organisation has consumed 1 Gigajoules of non-renewable energy sources, 0.5 Gigajoules of
renewable energy source and 2.0 Gigajoules of electricity. And the assessment clearly points out
that the calculation of the energy consumption table has been done using the calculation tools
prescribed by the Australian Department of Industry and Science. The report also points that the
organisation has taken an initiative to convert its total renewable energy source consumption to
at least 50% of its total energy consumption within the timeline of the next three years. Hence, it
could be asserted that Finnegan Constructions has complied with all the guidelines and standards
specified by the GRI reporting standards during the given reporting period.

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ii) Disclosure 304-2 Significant impacts of activities, products, and services on
biodiversity
The media report indicates that an environmental assessment of the Otford Park
development site revealed that the 60% of the development site is inhabited by rare species of
wallum sedge frogs. Evidently, the construction and development projects run under the
Finnegan Constructions are a threat to the vulnerable ecology and the biodiversity of the area.
The proposed medium density residential development project in Otford Park, as the assessment
suggests, would convert the local ecology irreversibly and thus would render the entire area
inconsistent for the inhabitation of the wallum sedge frogs, and will threaten the survival of the
species. To mitigate the negative impact on the biodiversity and the ecology of the area, the
organisation has disclosed a proposed initiative of conserving and managing the local
biodiversity, partnering with Stanwell council and several other environmental groups. The
report indicates their engagement in a strategy that would be devised that would facilitate the
development project without misbalancing the biodiversity.
iii) Disclosure 307-1 Non-compliance with environmental laws and regulations
The assessment of Finnegan Constructions pertaining to their environmental impact
indicate that the organisation has reportedly violated their compliance to environmental laws and
regulations. The report suggests that a complaint has been lodged to the Department of the
Environment and Energy and subsequently an investigation was commissioned against Finnegan
Constructions, alleging that the organisation has cleared an area about 0.45 hectares of coastal
grasslands containing critically endangered ecology community. The area was recognised under
the State Planning Scheme as comprised of a biodiversity of significant flora and fauna. Upon
investigation, a fine of $200,000 was put on the organisation.

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As ordered by the Federal Department, Finnegan Constructions was also to undertake an
external review of its vegetation management plan, extending the audit program to its partnering
contractors. Subsequently, the organisation was ordered to devise a rehabilitation plan to manage
the ecological balance in all their operational sites. The assessment projects an estimated cost of
$440,000 for conducting this audit and the rehabilitation plan.
C. Social sustainability
i) Disclosure 401-1 New employee hires and employee turnover
The assessment indicates that the labour market around Finnegan Constructions is highly
competitive. For the last reporting period, Finnegan Constructions had hired 58 male employees
for construction related jobs and trades. However, the employee turnover rate is also quite, as
mentioned earlier, due to the high competition in the local job market. This phenomenon is
corroborated by the data indicated in the assessment, which shows that 17 employees in the last
reporting period have left the organisation to work mostly for rival organisations or to start their
independent businesses. To compensate, Finnegan Constructions has hired 12 apprentices.
Further, as suggested by the assessment, the company has undertaken a number of employee
retention strategies, including increasing pay rates and benefits for the employees, as well as
implementing a monthly rostered day off for its existing staff.
ii) Disclosure 406-1 Incidents of discrimination and corrective actions taken
The report indicates that recently there has been an incident of workplace discrimination
within Finnegan Constructions. A tenured employee of the organisation, David Dawson,
allegedly reported to the Fair Work Commission, complaining that he had been subject to
discriminatory behaviour and subsequent harassment by his colleagues in the organisation due to
his age. As Dawson had resigned from the company, his resignation stated that he was the only

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employee in the Finnegan Constructions over the age of 50, whereas all the other employees of
the organisations belonged to the age group of 30 to 50. An investigation of the incident revealed
that he was out under humiliation by age related jokes from the other employees, and is evidently
a victim of age discrimination.
The Fair Work Commission, upon review, upheld Dawson’s claim and ordered Finnegan
Constructions to pay a compensation of $4,400 to him. The organisation also received a
stipulation from the commission to update their anti-discrimination policy as well as making
provision for training regarding anti-discrimination behaviours for all its employees. According
to the assessment, the organisation has reportedly complied with all the orders.
iii) Disclosure 413-1 Operations with local community engagement, impact
assessments, and development programs
As per the assessment, Finnegan Constructions puts effort to a measurable extent in order
to engage with the local communities, in order to proliferate a positive social impact. To this end,
they perform regular impact assessment as well as formulate relevant social development
programs across all their residential development projects. The rationale for these projects are to
meet the requirements for affordable housing of the local communities. The organisation also
collaborates with Stanwell Council for complying with the Council’s proposed amendments to
Local Environmental Plan with the aim to achieve an overall positive social, environmental and
economic impact.
Conclusion
By and large, it could be concluded that the sustainability assessment of Finnegan
Constructions complies with the guidelines and the specifications of the GRI standard. The

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social, economic and environmental impact of the organisation is comprehensible to a
measurable extent by the assessment of the specific declarations presented in the case study.

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Reference
Edenhofer, O. ed., 2015. Climate change 2014: mitigation of climate change (Vol. 3). Cambridge
University Press.
Global Reporting Initiative, 2016. GRI standards. Available at: https://www.
globalreporting.org/standards. [Accessed on 16.02.2020]
Maas, K., Schaltegger, S. and Crutzen, N., 2016. Integrating corporate sustainability assessment,
management accounting, control, and reporting. Journal of Cleaner Production, 136, pp.237-
248.
Opoku, A., 2019. Sustainable development, adaptation and maintenance of infrastructure.
International Journal of Building Pathology and Adaptation.
Sala, S., Ciuffo, B. and Nijkamp, P., 2015. A systemic framework for sustainability assessment.
Ecological Economics, 119, pp.314-325.