Discuss about the Sustainability Development Reporting in Accounting.
BHP Billiton headquartered in Melbourne, Australia is identified as a leading Anglo-Australian multinational recognized in the fields of mining, petroleum and metals. It has been further seen that the different types of the activities which are performed by BHP Billiton has been clearly seen and understood in terms of the discovery, acquisition, development and several activities concerned to the marketing of the natural resources all over the globe. Some of the major initiatives taken by BHP Billiton have been seen in terms of the different types of the consideration, which has been made and held responsible for the different types of the activities made in form of the development, production, and marketing oil and gas products. It has been further seen that the main operation location of the company has been seen in terms of in the Gulf of Mexico, Western Australia, and Trinidad and Tobago (BHP Billiton. 2017).
In the recent times, it has been seen to be important that the different types of the aspect related to the value and the sustainability has been seen in form of gaining a significant importance. In terms of the sustainability, BHP Billiton has been seen to ensure and integrate health, safety, environmental, social and economic factors. It has been further that the different types of the other initiatives has been seen on terms of the making sure that the company is being able to handle the different types of the material risk which are seen to be related to people, suppliers, contractors and the communities. In several other aspects the company has been seen to ensuring that the different type of the sustainability factors such as ensuring the health and safety of the people of the aforementioned communities.
As the company is mainly involved in the in the fields of mining petroleum, mining and metals there have been several types of social issues been identified which calls for the need of sustainability reporting. The present social problems in line with the activities, which are being carried out in BHP Billiton such as:
The present state of the sustainable reporting of the company has been seen in terms of the carrying out of the sustainability operations, which is focused towards reducing the environmental footprint, aimed towards the people, communities’ health and safety. The objective has been seen in terms of creating a long-term environmental and social value for the company. It has been further seen that the broad categories of the socio economic action, which has been taken by the company, are seen in the fields of
The present reporting standards maintained by the company has been seen is directly following the guidelines given under the section “International Council on Mining and Metals (ICMM)”. It has been further seen that the different types of the considerations which has been made in the assignment has been seen to be directly related to the “Sustainable Development Framework and is prepared in accordance with the Global Reporting Initiative (GRI) Issues. The GRI reporting standards has been seen to be in line with the G4 Comprehensive-level reporting. It has been further seen that the different types of the reporting standards, which are being maintained by BHP Billiton, has been seen in terms of the indicators from the GRI Mining and Metals Sector Disclosures.
The issues and the scope of the sustainability reporting is being seen in terms of the problems which is seen to be limited to the consideration of Sustainability Reporting covering the assets that have been fully owned and operated by the company or that have been operated by BHP Billiton in the joint venture activities. The different types of the issues have been further seen in terms of material sustainability (Price 2015).
The different types of the material sustainability have been effectively delivered by the strategy of the company. It has been further seen that the different types of the engagement for the stakeholders has been seen in terms of the regular, open and honest engagement with the various stakeholders of the company. It has been assisting BHP Billiton to identify, understand and prioritize the sustainability. The various types of the related initiatives taken by the company have been further seen in term of the following initiatives:
The implication of the sustainability reporting on the financial decision-making has been seen in terms of superior transparency across the business. The different types of the financial contribution has been seen in terms of the outlining a report which is able to state on the individual economic contribution and payments to governments report. In several aspects of the report the transparency has been seen to be benefitting financially for the various types of the disclosure which has been made in the extractives sector. It has been further seen that the sustainability issues has been seen to be playing an important role in term of the developments, which are directly related to the host country. The various types of the financial development brought by the company has been further seen in terms of the United Nations Sustainable Development Goals (SDGs) (Mayes, McDonald and Pini 2014).
The Sustainability Development framework of BHP Billiton is prepared in accordance with the Global Reporting Initiatives (G4 comprehensive reporting Framework). All practices are mentioned in the report disclosing the indicators of GRI Mining and Metal sector (Bebbington, Unerman and O’Dwyer 2014). In 2016, BHP Billiton was acted effectively to decrease the environmental footprint of their operations, to keep the communities healthy and safe. Under the GRI framework, the company disclosed the material aspects reflecting economic, social and environmental impacts and discussing the sustainable practices for assessments and decisions of stakeholders. For instance, the Sustainability report covers those assets which have been wholly owned and operated by BHP Billiton in the operation of the joint venture mentioning the period from 1st July 2014 to 30th June 2015. Material information up to 10th September 2015 has also been included in the Sustainability Report 2015 (Fonseca, McAllister and Fitzpatrick 2015). The assets incorporate those under exploration, projects in development and the phase of the execution and closed operations during the year. Importantly, the company also mentioned details about the discontinued assets while highlighting the performance in that report. In this way, the report identified material aspects and boundaries at the end of the reporting period.
To discuss the current state of sustainability report, the performances of BHP Billiton needs to be evaluated by the General Standard Disclosures.
The sustainability approach of the business has been practiced under the BHP Billiton Code of Business Conduct. The regular activities and decision of the company are supported by the public performance targets. Under the disclosure of strategy and analysis, the company ensured that all the internal and external stakeholders are working in compliance with standards and requirements (Ioannou and Serafeim 2016). Interestingly, the documents offer a strong foundation for applying a consistent risk based approach to sustainability. Effective governance and internal controls mechanism helps to maintain smooth oil and gas exploration activities (Junior, Best and Cotter 2014). On the other hand, BHP Billiton has constantly realized and respects the position of employees by conducting yearly reviews for alignment with the voluntary Principles on Human Rights and Security and incorporate improvement plans to reduce the identified limitations. In this way, the company maintains business integrity and values stakeholder’s engagement effectively and efficiently.
To improve the sustainability framework, BHP Billiton needs to follow the below mentioned steps:
Conclusion
The report has been able to highlight on the different type of the aspect of the report, which has been able to state on the relevant issues, which has been seen to have been seen in form of Identification of the current social issues. The main issues have been seen in form of Air emissions and air quality, Energy use and conservation, Wastewater and water quality, Hazardous materials use, Water use and conservation of the same. The report has further identified the current state of the sustainability reporting prevailing at BHP Billiton. The report has further able to identify the various types of the considerations related to the Sustainability Reporting Practice such as International Council on Mining and Metals (ICMM), Sustainable Development Framework and is prepared in accordance with the Global Reporting Initiative (GRI). The report has further identified the existing Issues in the sustainability reporting of the company. This has been directly observed in terms of the consideration of only those assets that have been fully owned and operated by the company or that have been operated by BHP Billiton in the joint venture activities, whereas there can be several other factors for the sustainability. The latter part of the report has been able to consider the implication of sustainability reporting in terms of financial decision-making.
Reference List
Bebbington, J., Unerman, J. and O’Dwyer, B., 2014. Sustainability accounting and accountability. Routledge.
BHP Billiton. (2017). BHP Billiton | A leading global resources company. [online] Available at: https://www.bhpbilliton.com/ [Accessed 25 Jan. 2017].
Bhpbilliton.com. (2017). [online] Available at: https://www.bhpbilliton.com/-/media/bhp/documents/investors/annual-reports/2015/bhpbillitonsustainabilityreport2015_interactive.pdf? [Accessed 25 Jan. 2017].
Bhpbilliton.com. (2017). [online] Available at: https://www.bhpbilliton.com/-/media/bhp/documents/investors/annual-reports/2016/bhpbillitonsustainabilityreport2016.pdf [Accessed 25 Jan. 2017].
Billiton, B.H.P., 2014. Sustainability Reporting Navigator. BHP Billiton: Melbourne, Australia.
Fonseca, A., McAllister, M.L. and Fitzpatrick, P., 2014. Sustainability reporting among mining corporations: a constructive critique of the GRI approach. Journal of Cleaner Production, 84, pp.70-83.
Ioannou, I. and Serafeim, G., 2016. The consequences of mandatory corporate sustainability reporting: evidence from four countries.
Junior, R.M., Best, P.J. and Cotter, J., 2014. Sustainability reporting and assurance: a historical analysis on a world-wide phenomenon. Journal of Business Ethics, 120(1), pp.1-11.
Mayes, R., McDonald, P. and Pini, B., 2014. ‘Our’community: corporate social responsibility, neoliberalisation, and mining industry community engagement in rural Australia. Environment and Planning A, 46(2), pp.398-413.
Price, G., 2015. Spotlight on seeds for BHP Billiton Iron Ore. AusIMM Bulletin, (Jun 2015), p.76.
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