MBA402 Governance: Sustainability Assessment Report - Timberwell

This sustainability assessment report analyzes Timberwell Constructions' performance against the Global Reporting Initiative (GRI) standards, focusing on economic, environmental, and social dimensions. The report evaluates specific disclosures related to financial risks from climate change, corruption incidents, anti-competitive behavior, energy consumption, biodiversity impacts, and compliance with environmental regulations. Social sustainability is assessed through employee turnover, discrimination incidents, and community engagement initiatives. The analysis reveals areas where Timberwell Constructions aligns with reporting guidelines and identifies gaps for improvement in communicating and addressing critical sustainability issues, advocating for a consensus-seeking approach to incorporate diverse stakeholder interests.

Running head: SUSTAINABILITY ASSESSMENT REPORT
Sustainability assessment report
Name of the Student
Name of the University
Author Note

SUSTAINABILITY ASSESSMENT REPORT
Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................2
Economic sustainability:............................................................................................................2
Environmental sustainability:.....................................................................................................4
Social sustainability:..................................................................................................................6
Conclusion:................................................................................................................................8
References list:...........................................................................................................................9

SUSTAINABILITY ASSESSMENT REPORT
Introduction:
The current paper elucidates the assessment of sustainability report by analyzing and
evaluating the information on the Timberwell Construction by outlining the consolidated set
of sustainability reporting standards of GRI (Global Reporting Initiative). They are the global
standard for the sustainability reporting of which there has been restructuring of the contents
has been done as the standards are responsive to new development. Economic, social and
environmental impacts are the three series of topics for specific standards. The principle of
GRI specifies how the company should prepare its sustainability report according to the
standards (Globalreporting.org 2018). The analysis of the information presented in the case of
Timberwell constructions is done by evaluating the series of standard relating to economic,
environmental and social position. All such series have been explained and analyzed by
discussing specific disclosures. Timberwell construction has experienced lower retention rate
of employees and joining of new employees at the same time. For retaining the existing
staffs, company has implemented a monthly roster.
Discussion:
Economic sustainability:
Disclosure 201-2: Financial implications and other risk and opportunities due to
climatic change:
The topic related to economic performance of organization is addressed in GRI 201.
As per the guidelines of disclosure 201-2, it is required by organization to report the
opportunities and risk due to the climatic change along with giving a description of the
impact that is related with such opportunities. In addition to this, organization should also

SUSTAINABILITY ASSESSMENT REPORT
report the financial implications of any risk and existing opportunities, cost of actions and
methods that is used to manage such opportunity and risk. The risk and opportunities brought
by the climatic change should be managed by outlining the methods. In case of Timberwell
constructions, the increased risk associated with the amendment of specific zone should be
reported. The energy efficient organization such as Timberwell should report the additional
characteristics such as increased risk of bushfires and warning effect of climatic change (del
Mar et al. 2014).
Disclosure 205-3: Confirmed incidents of corruptions and actions taken:
As per this standard, it is required by entity to report information such as nature of
confirmed incidents and total number of corruption. Total number of employees dismissed or
discipline for corruption should also be reported. Any public legal cases that are brought
against the employees or organization should also be reported along with their outcomes.
Furthermore, any violations leading to corruptions and termination of contract with business
partners should also be reported. The case of public corruption scandal involving employees
and business partners of Timberwell should be reported (Globalreporting.org 2018). In
addition to this, the termination of partnership of Timberwell with two external consultants
should be reported along with suspension of all five employees.
Disclosure 206-1: Legal actions for anti competitive behavior, monopoly practices and
antitrust:
This particular standard requires organization to make disclosure of number of legal
actions pending and completed and violations of any monopoly and antitrust legislation. Any
act of anti competitive behavior should be reported. Moreover, any actions taken by
organization that restricts the entry to the sector and other collusive actions should be
reported. In the given case of Timberwell construction, it was alleged that the company was

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involved in the conduct that prevented new entrants in the development market with the
intention to lessen the competition in the market. Such act of barriers should be reported by
organization. It was also found from the given case that Timberwell was involved in anti
competitive conduct that included engaging in exclusive dealings and misuse of market
power. A series of complaints was launched by one of the former employees of Timberwell
about its operations to a number of government authorities. All such incidents should be
reported in the sustainability report of the company for depicting its true economic
performance.
Environmental sustainability:
Disclosure 301-2: Energy consumption within the organization
This particular disclosure intends to make a disclosure of the consumption of energy
within the organization in their sustainability report. Information on energy consumption such
as total amount of consumption from renewable and non renewable sources should be
reported along with the methodologies, standard and assumptions. The reporting organization
should also make disclosure of consumption of self generated energy and avoid on double
counting of such energy consumption. In addition to this, reporting entity should also disclose
the local conversion factors and generic conversion factors and data disclosure should be
done by applying the conversion factors (Globalreporting.org 2018). Timberwell should
report about its total consumption of renewable and non renewable energy.
Disclosure 304-2: Significant impacts of product, activities and services on biodiversity
The impact of the operations of organization on the biodiversity should be done by
referring to the use and construction of manufacturing sites, species reduction, habitat
conversion, pollution and change in ecological process. Such disclosure assists users in
gaining an understanding about the strategy used by organization to mitigate the considerable

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direct and indirect impact on environment. It was discovered from the case study that there
was introduction of invasive species identified from the assessment of environmental impact.
The park development site of company was identified with development of rare wallum
sedge frog population. Furthermore, Timberwell has taken the steps to conserve such species
and managing the proposed development by devising strategy.
Disclosure 307-1: Non compliance with environmental regulations and laws
This particular disclosure standard requires organization to report about the impact of
their non compliance with the regulations or environmental laws that resulted in non
monetary sanctions and significant amount of fines. The consequence of non compliance in
monetary terms should be reported in terms of total number of non monetary sanctions,
monetary value relating to fines and dispute resolution mechanism cases. However, a brief
statement would suffice if there has not been identification of any events leading to non
compliance with the environmental laws and regulation. On other hand, failure of
organization to comply with the environmental regulations and laws requires them to include
judicial and administrative sanctions. Such sanctions might include voluntary environmental
agreements that are developed as a binding as substitute of implementing new regulations and
are considered binding (Amran et al. 2014). Any cases against the organization through
national dispute mechanisms and national dispute mechanisms supervised by the authorities
of government should also be reported.
It was assessed from the environmental operations of Timberwell that proposed
development of medium density residential would be inconsistent with the survival of frog in
the site and would irreversibly convert the habitat. Company is required to incur a cost of $ 4
million for complying with new regulations due to the development site in the district of
Stanwell. For minimization of potential cost, the substitute of new regulation implementation

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is done by Timberwell engaging in external town planning firm which would charge $ 50000
for the services. Such voluntary agreements relating to environment acting as substitute of
new regulations should be disclosed by organization.
Social sustainability:
Disclosure 401-1 New employee hires and turnover
As per this disclosure, organization is required to report about employee turnover and
new hires of company. Information such as rate of employee turnover and total number of
rate of turnover by gender, region and age group is reported in reporting period. In addition to
this, rate of joining and total number of new employees by gender, region and age group
should be reported into the sustainability reporting for reflecting social performance of
company. The ability of organization to attract diverse and qualified employees is indicated
by the strategy which signifies the optimal use of available talent and labor (Ceulemans et al.
2015).
From the information on the given case study on Timberwell construction, it has been
identified that the increasing attrition rate has resulted in hiring employee during the current
reporting period. In the current reporting period, twelve new apprentices have been hired
because existing seventeen employees have left either for establishing their own business or
for working for the rival organizations. For retaining the existing staffs, Timberwell has
implemented a monthly rostered day off and has increased the pay rates of workers. The
higher rate of turnover is indicative of the fact that there is dissatisfaction and uncertainty
among employees. It also reflects fundamental change in the core operations of structure of
organization.
Disclosure 406-1 Incidents of discrimination and corrective actions taken

SUSTAINABILITY ASSESSMENT REPORT
Any incidents about the discrimination and corrective actions taken by organization
should be disclosed in the sustainability report. During the particular reporting period, total
number of discrimination incidents should be reported. Actions taken and status incidents
should be disclosed with reference to implementation of remediation plan, incidents which
the organization reviews and implementation of such plans through the process of internal
review management. Discriminations on ground of race, religion, color, sex and religion
should be disclosed in the report (Fernandez et al. 2014). Moreover, any incidents that are no
longer subject to action should also be reported.
From the given case study, it can be seen that workplace harassment claim was filed
by one of the employees of Timberwell. It was alleged that the co workers of Timberwell has
discriminated against him on the basis of age. Furthermore, allegation was also imposed on
the ground that he was humiliated because of his age as other workers were in the age group
of 30 to 50. In light of this, company has implemented remediation plan by providing anti
discrimination training to its employees and updating its anti discriminatory policy.
Furthermore, the humiliated employee was also paid $ 4000 by way of compensation. All
such information should be disclosed in the sustainability report of company.
Disclosure 413-1 Operations with local community engagement, impact assessments and
development programs
This standard disclosure requires organization to disclose the information relating to
operations by engaging with local community, development of programs and assessing the
impacts. This requires making a disclosure about the assessment of impact on environment
based on participatory process and assessing the impact of gender. Assessment of
environmental and social impact resulting from disclosure of public should be disclosed.
Furthermore, the grievance process and consultation committees of local communities and

SUSTAINABILITY ASSESSMENT REPORT
vulnerable group’s process should be included. Mapping of stakeholders forming the basis of
stakeholder engagement plan should also be reported (Diouf and Boiral 2017).
Based on the needs of community, it has been identified that Timberwell has
undertaken an external review of management plan of the vegetation and has implemented a
rehabilitation plan alongside audit program for contractors. Based on local needs of
community for affordable social housing, organization has taken the initiatives in terms of
conducting local residential meetings, assessment of environmental impact and local
community development program (Crane and Matten 2016). All such information is required
to be reported in the sustainability report of Timberwell accordance with the standard
guidelines.
Conclusion:
From the analysis of the given information on the Timberwell construction, it can be
inferred that organization has not aligned some of the requirements of the reporting
guidelines. However, some of the guidelines have been met in terms of disclosure of data
relating to the environmental issues. It is required by Timberwell to prepare their
sustainability report that would help the users in communicating and understanding the
critical sustainability issues. A consensus seeking approach should be used by Timberwell
that would incorporate the widest possible range of interest of stakeholders in their reporting
framework.