SBS Transit: Sustainability Reporting and GRI Standards Analysis

This report provides an in-depth analysis of SBS Transit Ltd's sustainability reporting, focusing on its adherence to the Global Reporting Initiative (GRI) standards. The report examines the company's environmental initiatives, including the adoption of green technologies like hybrid buses and Euro 5 compliant buses, as well as its efforts to reduce emissions and conserve resources. It also assesses SBS Transit's social responsibility, including its commitment to employee safety, commuter engagement, diversity, and labor management relations. The report highlights how the company integrates sustainable development principles into its operations, aiming to balance present needs with future resource availability. Additionally, it discusses the benefits of GRI reporting for accountability, risk management, environmental protection, and stakeholder relations. The report concludes that SBS Transit demonstrates a strong commitment to sustainability, aligning its practices with GRI standards and contributing to the well-being of its employees, commuters, and the environment. The report also touches upon IFRS 8 operating segments.

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Advanced Financial Accounting

SBS Transit Ltd
Executive Summary
Sustainability and GRI standards are the need of the hour because it described the role of the
companies towards the society. The companies need to provide the benefits to the society. In
this report, SBS Transit is selected for the purpose of study that is listed on the Singapore
Stock exchange. The annual report of the company is discussed in terms of sustainability
reporting and segmental reporting. The extent to which the company adheres to the GRI
standard is discussed in the report.
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SBS Transit Ltd
Contents
Introduction...........................................................................................................................................4
GRI reporting about the sustainability of SBS Transit............................................................................4
Sustainable development......................................................................................................................7
Green Effects.........................................................................................................................................7
Usefulness to the public users and investors.........................................................................................8
IFRS 8 operating segment......................................................................................................................8
Conclusion...........................................................................................................................................10
References...........................................................................................................................................11
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SBS Transit Ltd
Introduction
GRI is a worldwide adopted global standard for sustainable reporting by the companies. This
initiative known as GRI is helpful for businesses, companies, government, etc all over the
world in understanding and communicating the sustainable issues relating to the business
which include social, economic and environmental factors such as a change in climate,
human rights, social development and well being, corporate governance, etc. The standards
set by the GRI have been developed with the help of all stakeholders’ viewpoints and made
for the convenience of the general public at large (Kruger, 2015). The company has to give
back what it takes from society, environment and the general public at large.
GRI reporting about the sustainability of SBS Transit
The main aim of GRI is the creation of overall benefits for society and the general public at
large. The GRI insists on reporting by the companies about their sustainability performance
throughout the year. The company shall report on what it has done for GRI and its adoption.
Forex: How the company has helped it creating employment, maintaining environmental
balance and control of pollution etc (Edward & Moutchnik, 2013).
The main benefits of complying with GRI reporting about the sustainability information are :
i. It helps in improving accountability of the company.
ii. It helps in identifying and management of risks as there is complete disclosure on the
part of companies under GRI (SBS transit, 2017).
iii. It assists in the protection of the environment as the companies have to adhere to all the
environmental rules.
iv. The GRI assists the companies in the improvement of overall governance, relations with
the stakeholders, building of trust and reputation, hence uplifting the company on economic
aspects (SBS transit, 2017).
v. The GRI reporting benefits the society as a whole through less environmental damage,
less child labor, better employment opportunities, adherence to human rights, gender
equality, etc (SBS transit, 2017).
Compliance with the GRI standards of the company SBS Transit Ltd :
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SBS Transit Ltd
The company is totally committed towards the sustainability of the environment and society
as a whole. This can be seen through the disclosures and justifications provided by the
company in its Annual Report under the section of Sustainability reporting. It has disclosed
that it has worked throughout the year towards safety and security of the environment,
improving labor and management relations, ensuring a more sustainable future and so on
(Caradonna, 2014). This can be elaborated by having a view of the sustainability report of the
company.
i. Adherence to Environmental aspects- the steps taken by the company for saving the
environment are summarised under :
a. The downtown lane was designed by the company keeping the safety of the environment
in mind. All the innovations from depots to the stations have been done by the company in an
environmentally friendly manner (Caradonna, 2014).
b. The trains have been designed using regenerative braking system which also preserves
energy.
c. The buses operated by the company are Euro 5 compliant which emit fewer pollutants.
d. The company has established green roof at the bus depot. Also, there is automatic bus
washing system which recycles almost 80% of the water (SBS transit, 2017).
e. At six bus depots, tablets are used instead of paper checklists and forms. Use of BMMS
also reduces paper usage and wastage thereby saving the environment.
ii. Health & Safety- the company ensures the safety and security of its employees, its
passengers and fellow road users by :
a. The bus captains (BCS) are trained and equipped with high technology equipment to
anticipate road hazards.
b. The drivers are provided with driving sill enhancement courses so that they drive safely
on roads and can avoid any kind of uncertain situation and accidents.
c. Other safety steps are also taken such as cameras in buses, following traffic rule
guidelines, etc. In case there are some defaults on the end of drivers or any commuter, the
cameras would be helpful in their accountability also.
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SBS Transit Ltd
iii. Security- the company initiates to have a heightened security environment. The senior
management and staff are trained for using life-saving skills and equipment. Various
workshops are also conducted for the staff and employees to prepare them for any unseen
contingencies such as terror threat, etc. The cybersecurity processes are also backed up and
updated regularly apart from the physical security (Freeman & Alexander, 2013).
iv. Commuter engagement- the commuters are also involved in the safety program being
used by the company. They were shown how to evacuate the trains and buses in case of any
emergencies. The commuters also participated in the training process and provided their
valuable feedbacks.
v. The people as a whole –
a. Diversity & Equal Opportunities- the company has recently appointed two female
directors in its Board to promote diversity and has been increasing female employees. Also,
the company follows a policy of non-discrimination where it employs people regardless of
their sex, caste, creed, religion, etc and gives opportunities to people on behalf of their skills
(Milne & Grubnic, 2011).
b. Growth & Development- the company continuously tries to increase its workforce and
takes initiatives for their skill development and enhancing their skills.
c. Employee Engagement-the company welcomes suggestions from its employees with
regard to any process of work, etc (SBS transit, 2017).
d. Labour Management Relations- the company believes in maintaining good relations
between its laborers and management. Most of the executive staff has signed a collaborative
agreement with the National Transport Workers’ Union. The management and the union
constantly work towards the betterment of its employees (Freeman & Alexander, 2013).
Through the study of above points from the company’s sustainability reports, it is very clear
and obvious that the company follows the standards set by GRI and is working every day to
benefit the people of the company and outside as a whole through environmental, social and
economic benefits. The company fulfills all the requirements of GRI and in future also aims
to satisfy the society and all the stakeholders through its environment-friendly and employee
friendly approaches. The company aims to be on the top list of socially and environmentally
accepted company (Douma & Hein, 2013).
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SBS Transit Ltd
Sustainable development
Sustainable development may be defined as the process of development that helps to satisfy
the present needs without disturbing the needs of the future generations. It can also be defined
as the sagacious management of the anthropoid and the resources which help them to survive
in this world in the long run (SBS transit, 2017). It is considered as the act of management
which have the main objective of using the resources in the present in such a manner that
there will be no problems faced by the future generations towards the availability of the
resources (Connelley, 2012). It tries to make an environment where all the present and the
future economic resourced are conserved in a balanced format so that there may be no
scarcity faced of the natural resources and thus also protect the environment from pollution.
The application of the environment requires the integration of the economic and
environmental goals (Bonson & Bednarova, 2015).
Green Effects
It was in July 2010 when the SBS transit announced the use of the hybrid bus trials. These
types of buses were said to run on both diesel and electricity and was said to be brought into
the market by Comfort Del Group Engineering in association with the Shanghai Sunlong Bus
Company and Gemilang Coachworks of Malaysia. It was noticed that by the use of electricity
in Busses the fuel consumption can be dropped by 30 percent (SBS transit, 2017).
The company is said to invest $147 million in the production of the new busses in September
2008 so as to buy 400 brand new Euro V Scania buses. These busses have been mentioned as
the Asia’s first fully enhanced environmentally friendly vehicle. These busses are more
efficient than the normally manufactures EEV vehicles thus making the important for the
environment. For example, the gasses which degrade the ozone layer and irritate the eyes and
also cause diseases are reduced by 46% of the emission rate when the data is compared to the
traditional Euro IV and V engines (SBS transit, 2017).
SBS has also mentioned that it is going to launch new single-deck buses. They have
announced that they will produce 500 busses with single decks that will start running on the
streets by November 2007 thus will also help them to start the use of the Euro IV engine
which is said to be much more efficient in the protection of the environment from pollution
(SBS transit, 2017). Also, they have used the exhaust gas re-circulation system technology
which has the function of the cleaning up of the toxic fumes before they are released into the
atmosphere. the material used to manufacture the busses are also having high tensile strength,
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SBS Transit Ltd
lightweight material and are also equipped with the six-speed ZF automatic transmission
which is said to be one of the most fuel-efficient systems.
The systems that have been enumerated by the SBS are said to improve the relationship
between the government and companies and thus create a sustainable environment which
follows the objective of achievement of the better life and thus improving the transparency in
the society. There have been different measures taken into consideration and these measures
have been used by analysts to define the integrity, ethics, profitability and many other
illustrated indicators (Albuquerque et. al, 2013). The reports of the GRI have also stated that
the transparency of the reports will help the business to attract a lot of investors and traders.
Usefulness to the public users and investors
The electrical energy is said to be generated by the use of brake energy and then is saved in
the lithium-ion batteries that can help to store the energy and power the bus whenever
needed. The energy which has been stored is realized when the vehicle needs the power and
then the energy is converted into mechanical energy thus resulting the consumptions of the
fuel levels to drop (Pearce, 2012). Such a practice leads to benefits for the public users as the
transport system will be sustainable in nature and will help the society at large. The busses
have a system containing parallel hybrid motors and generators which help them to generate
and then convert the energies (Francis et, al, 2013).
The main objective of sustainable development is not to protect the environment but the focus
is to create a very stable society that has set the future plans so that it may not face the
scarcity of the resources in future (Fraser, 2011). It is also known as global goals because of
its nature of protection of the planet if there have been any problem relating to the peace and
prosperity of the nation (Bauer & Hann, 2010).
Further, the presence of sustainable act will lead to upsurge of the company and enhance he
goodwill thereby leading to better price of the stock. This will help the investors as the price
of the stock will appreciate and will lead to a strong stability.
IFRS 8 operating segment
The operating segment has been identified and SBS transit reports the segment information
that is contained in the business. From the reporting framework, it is witnessed that the
company reports the revenue that pertains to the internal and external segment. In addition, it
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SBS Transit Ltd
has reported the profit and loss in an absolute amount that pertains to the combines profit or
the combined loss all the operating segments (SBS transit, 2017). As per IFRS 8, it is needed
that the current period and the comparative segment information should be reported in a
consistent way. This projects that of the segment is traced as reportable in the current term
but was not present in the previous team then equivalent comparative information must be
projected (Thomas, 2016). Going by the discussion and the annual report, it has been
observed that the entities are needed to provide general information and that SBS Transit has
provided general information on such matters like the reporting segments and the type of
product or services from which the revenue is generated. In addition, SBS transit has
provided a measure of profit or loss and total assets for every reporting segment.
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Conclusion
Going by the overall discussion it can be commented that the company has adhered to the
principle of sustainability. It has effectively provided all the maters in the annual report and
that represents a correct disclosure. The GRI standards are followed by the company and that
the IFRS 8 operating segments are followed to a great extent. All the disclosures are provided
and sustainability of the company indicates that all the requirements are met. Moreover, such
a balanced disclosure is of immense help to the end users.
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References
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firm risk: theory and empirical evidence. Boston University.
Bauer, R., & Hann, D. (2010). Corporate environmental management and credit risk.
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Caradonna, J. L. (2014). Sustainability: A History. Oxford University Press
Connelley, T. (2012). Aspects of leadership, Ethics, law and Spirituality. Marines Corps
University Press
Douma, S., & Hein, S. (2013). Economic Approaches to Organizations. London
Edward F., & Moutchnik, A. (2013). Stakeholder management and CSR: questions and
answers. Oxford Press
Fraser, C (2011). The Oxford Handbook of World Philosophy. Oxford University Press
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Francis, R. N., Harrast, S., Mattingly, J. and Olsen, L. (2013). The relation between accounting
conservatism and corporate social performance: An empirical investigation. Business
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Kruger, P. (2015). Corporate goodness and shareholder wealth. Journal of Financial
economics, 40, 304-329. Retrieved from
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Milne, M.J., & Grubnic, S (2011). Climate Change Accounting Research: Keeping it
interesting and different. Accounting, Auditing and Accountability Journal, 24(8), .948-
977. Doi: https://doi.org/10.1108/09513571111184715
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Pearce, J.M. (2012). The Case for Open Source Appropriate Technology. Environment,
Development and Sustainability, 14(3), 425–431. Retrieved from:
https://link.springer.com/article/10.1007/s10668-012-9337-9
SBS transit. (2017). SBS transit annual report and accounts 2017. Retrieved from
https://www.sbstransit.com.sg/download/SBST%20-%20Annual%20Report
%202017.pdf
Thomas, S.A. (2016). The Nature of Sustainability. Chapbook Press. Grand Rapids, Michigan
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