MBA402: Sustainability Assessment Report - Timberwell Constructions

This report provides a sustainability assessment of Timberwell Constructions, a residential development company, based on the GRI Sustainability Reporting Standards. The assessment covers economic, environmental, and social aspects. The economic section analyzes financial implications of clima...Read More

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Governance, Ethics and Sustainability
Professor
Name
Date

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SUSTAINABILITY ASSESSMENT REPORT FOR TIMBERWELL
CONSTRUCTIONS
ECONOMIC
Management approach
Timberwell constructions work in solve the world’s biggest economic sustainability
challenges in its daily activities. We are a company specialized in residential development
situated in Stanwell Council District. We aim to build numerous complex apartments. We create
employment for 50 people. With a positive history in construction we are working towards
reinventing and renewing the company. We are progressing by blending our customer
knowledge and unmatched expertise in construction to meet global challenges created by an ever
growing population, growth of the middle class people, and raising demands on the Earth’s
natural possessions (Yoo and Lee 2016). The employee market is very competitive and workers
that leave the company are replaced within a short time. We help them build themselves by
pushing them to start their own businesses or work for other companies.
G4-201-2: Effects of climate change on finance and the opportunities and risks it
provides.
With regards to climate change, global understanding of the concept of climate change is
enough to encourage people to take action to limit greenhouse gases emissions. Climate change
presents a problem that affects our company, our investors, and our stakeholders (Hamiduddin
and Adelfio 2019). As our government does its part to monitor and regulate the climate change
causal factors, we account for the environmental pollution caused by our emissions and hence we

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try to identify the regulatory opportunities and risk. These include factors that impact
competitiveness and cause an increase to cost. Greenhouse gas (GHG) emission limits also
provide various opportunities through creation of markets and new technology. Timberwell
Construction operations are affected by various risks, many of which we cannot control.
Opportunities and risks caused by climate change can be categorized into regulatory, physical or
other (Ali 2013).
Those that we encounter that are physical include: impacts of frequent and more intense
storms and rainfall, increase in global temperatures, changes in precipitation patterns, and
reduced water availability.
Also there are health effects that are experienced by our workers such as effects of excessive
heat exposure.
However, the company is going to use the available environmental laws and regulations to
deal with the problem of climate change through reduction of greenhouse gas emissions. The
company has also identified opportunities brought about by climate change such as the need for
climate adaptation, and how Timberwell Construction considers this when coming up with future
product opportunities (Arora 2018)
Some of the methods we are using to manage the risks or opportunities include:
 Use of renewable energy sources- Currently the company is using 0.5 Gigajoules
of renewable energy sources. A program has also been implemented to ensure that
renewable energy provides at least half of its energy within three years.
 Improving energy efficiency-It has an energy efficient company using
less energy to perform the day to day operations hence eliminating energy waste,

GOVERNANCE, ETHICS AND SUSTAINABILITY 4
reduction of greenhouse gas emissions, demand for energy imports and also lowering our
costs economy-wide level
G4-205-3: Cases of corruption reported and response
When there is a suspicion of incidents indicating corruption and any other violations related to
core values, investigations are conducted to gather evidence required to determine whether the
issue needs to be pursed or not. If the evidence is satisfactory, disciplinary action is taken, the
root cause of the incident is conducted, and control improvements that are related are
implemented so as to avoid such incidences again (Ali 2013).
A former employee made a complaint on corruption within our company at the state
corruption commission creating a corruption scandal seen publicly linking five of Timberwell’s
employees as well as two other business partners of the company. It stated that so as to advocate
for the applications for the improvement of the company through the state council endorsement
process, the two business partners and five employees gave a payoff to council project officers so
as to attain approval from them. Action has been taken, in that, each of the employees that were
accused and one out of the two business partners was eventually indicted with exploitation by the
state corruption commission. Consequently, they have been suspended from the company and
will not receive any pay while awaiting the outcome of the prosecution. The contacts that were
made with business partners have also been cancelled (Ekins 2012).

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G4-206-1: Behavior affecting competitiveness, monopoly practices and trust and
associated legal actions.
There were some complaints send to number of government authorities on company’s
operations with regards to competition behavior, business monopoly practices and trust. Based
on some of the complaints, proceedings have been instituted in the Federal Court against
Timberwell Constructions by the Australian Competition and Consumer Commission for alleged
abuse of market supremacy and anti- competitive behavior in their transactions (Fisher 2009).
It is alleged by the ACCC that they were made aware of a local company of builders who
were planning to rival them through establishing a developing company that would cause
competition. To deal with this, the ACCC claimed that the senior management told contractors
and the suppliers not to be part of trade with the fresh challenging development corporation or
their dealings with Timberwell Construction would be ended (Gibson and Hasan, 2013).
The ACCC also claimed that the company did this with the aim of discouraging and hence
stopping other companies involved in development in Stanwell district, or significantly reducing
their rivalry in the market. The federal court recorded the case which was to be decided upon
within 4 months.
ENVIRONMENTAL
Management approach
Timberwell environmental management approach is focused on: having a Local
Environmental Plan, following environmental laws and regulations, conducting Environmental
Impact Assessments, having residential meetings locally and taking part in community
development projects. These measures embed health and safety measures, and ensure

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environmental consideration in the business. It also provides information on environmental
performance to business partners and others involved in or affected by our business.
G4-302-1: Use of energy in the company
The table below gives data on Timberwell energy sources and consumption. Some of the
energy sources that are renewable include solar energy, hydroelectric, wind and geothermal
power, while sources of non-renewable energy include; petroleum, coal and natural gas (Ikerd
2012). Presenting this kind of information is done in an effort to show transparency of the
current state of the company so as to reestablish the baseline for our social and environmental
information.
Non-renewable energy used 1.0 Gigajoule
Renewable energy used 0.5 Gigajoules
Electricity
used
2.0Gigajoules
A program has been implemented to ensure that at least half of the energy utilized in the next
three years is from renewable energy sources such as wind. We hope to achieve this within the
next three years in order to reduce our carbon footprint.

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G4-304-2: Biodiversity impacts by products, services and other activities.
Timberwell intends to build the Otford Park, however this project will have negative impacts
on the environment. An Environmental Impact Assessment study conducted within the site
showed that only 40% of it was not inhabited by the wallum sedge frog that is exceptional
species.
The Impact Assessment estimated that the project proposed in the site would irremediably and
irreversibly change the site into a human homeland and making it inhabitable thus affecting the
frog’s population.
It is now functioning with Stanwell Council and several environmental groups to develop a
solution that will not affect the habitat of the wallum sedge frog if the development project is to
continue.
It has a site for development in the Stanwell district that will be in a part that will be known as
a bushfire prone zone that could negatively impact the environment. Under the proposed LEP
amendment, development sites considered as bushfire prone zones will thus have to raise their
principles of bushfire safety by activities like; increasing the distance between land and building
area boundaries and also the use of fire retardant resources to build during construction.
G4-307-1: Non-compliance with environmental regulations and laws
A complaint was raised to the Department of the Environment and Energy about one of
company’s activities that does is not in line with environmental regulations and laws. The

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company has been suspected of clearing 0.45 hectares of land containing highly threatened
biodiversity in communal coastal grasslands, an area that is acknowledged under the State
Planning Scheme as containing significant natural biodiversity attributes and because of that they
were fined $200,000.
They also have a site located in Stanwell district which is situated in a bushfire prone zone
under the LEP amendment; it will cost $4million to conform to the new LEP amendment
regulations.
SOCIAL
Management approach
Timberwell employees carry out the business while keeping in mind the company’s core
values of environmental stewardship, health and safety, good ethical behavior, and respect for
others. These core values play a major role in influencing company plans and policies. They
guide the employee by showing them how to operate the business and deal with clients,
shareholders, suppliers and other business partners. They guide the employees on how to interact
with the local communities and with each other (Y00 and Lee 2016).
G4-401-1: New regulations involving employee hiring and turnover
The market for Timberwell workers is very competitive causing an increasing employee
turnover. New employee trainees were employed by the company after the selection to replace
those that had left to pursue other opportunities. These included working for other competing
companies or to establish businesses of their own. Because of this the company has come up

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with measures to ensure that the remaining staff will be discouraged from leaving, such as
increasing their salary and introducing a day off in their monthly roster (Sorrell 2010).
G4-406-1: corrective actions taken for incidences of discrimination.
An employee resigned from the company after filling a workplace harassment claim in the
Fair Work Commission. He claimed that his co- workers discriminated against him due to his old
age. He further purported that being the only worker whose age is above 50 years as compared to
co-workers who age between 30 and 50, he had to endure humiliating jokes made about his age
by his co- workers (Rogers and Carlson 2013).
His claim was upheld by the Fair Work Commission and Timberwell Constructions was
ordered to pay him a compensation of $4,400.
Timberwell constructions also had to add onto its anti-discrimination policy to provide
guidelines and legislation so to prevent future incidences of prejudice and discrimination against
its employees, especially protected groups or protected classes in the job. All the employees were
also ordered to undergo training on anti- discrimination. They were advised to comply with the
laws that prohibited discrimination and harassment and were educated on policies, compliance
procedures and legal rules aimed at minimizing liability by providing a defense for any alleged
claims. All this was done hoping that employee behavior would improve thus creating a better
workplace environment for all. The commission’s orders have been considered and complied
with by the company (Leemans and Solecki 2013).

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G4-413-1: local community involvement through development programs and impact
assessment.
Public participation and local community involves engaging the public and local community
directly in making decisions. It is important as it gives consideration to the public’s opinions
when making decisions.
To a considerable expense, the company engages local communities, performs an
environmental and social impact assessment for all proposed residential development projects
and programs of any site. This is done through Environmental Impact Assessments, local
community dweller meetings and expansion programs while taking into consideration the
communities social housing needs and ensuring that they are affordable (Hardisty 2010).
Despite the complaints that have made putting the negativity into the company’s light and
image of Timberwell Constructions, the company works well with the community.
The company carried out an Environmental Impact Assessment on the company’s
development site in Otford Park and discovered that only 40% of the site was not inhabited by
the rare wallum sedge frog. The company is thus opted to partner with Stanwell Council as well
as various other environmental groups to come up with a tactic to ensure that the population of
the wallum sedge frog was not affected by the development activities (Liu 2018).

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References
Ali, M. (2013). Linkages of Sustainability Assessment. Sustainability Assessment, 89-97.
doi:10.1016/b978-0-12-407196-4.00007-6
Ali, M. (2013). Considerations of Sustainability Assessment. Sustainability Assessment, 43-58.
doi:10.1016/b978-0-12-407196-4.00004-0
Arora, N. (2018). Environmental Sustainability—necessary for survival. Environmental
Sustainability, 1(1), 1-2. doi:10.1007/s42398-018-0013-3
Ekins, P. (2012). Trade, Globalization and Sustainability Impact Assessment: A Critical Look
at Methods and Outcomes. London, England: Earthscan
Fisher, C. (2009). Corporate Sustainability Planning Assessment Guide: A Comprehensive
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Gibson, B., Hassan, S., and Tansey, J. (2013). Sustainability Assessment: Criteria and
Processes. London, England: Routledge.
Hamiduddin, I., and Adelfio, M. (2019). Social sustainability and new neighbourhoods. Urban
Social Sustainability, 171-192. doi:10.4324/9781315115740-9
Hardisty, P. (2010). Environmental and Economic Sustainability. Boca Raton, FL: CRC Press.
Ikerd, J. (2012). The Essentials of Economic Sustainability
Liu, J. (2018). An Internal Control System that Includes Corporate Social Responsibility for
Social Sustainability in the New Era. Sustainability, 10(10), 3382. doi:10.3390/su10103382
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Yoo, C., and Lee, S. (2016). Neighborhood Built Environments Affecting Social Capital and
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