Corporate Sustainability – MGMT2001

Corporate Sustainability – MGMT2001

Ecological Footprint Project and Pathway to Net Zero

ASSIGNMENT BRIEF

V2.0

This is an Individual Assignment

Value: 35 marks

Due date: 4:00pm Monday, 02 May 2022 Week 09

Submission: via Turnitin link on Wattle

Return: 16 May 2022

Maximum length: 12 pages (1.5 line spacing, font, Times New Roman or Candara, font size 12) excluding appendices, ToC, Cover. – see details below

Assessment Aims

The project will provide an unstructured, real-life problem to which students will recommend a solution. In particular to;

  • Inform the firms sustainability decisions making within the typical managerial constraints of incomplete and possibly inaccurate information, and under the pressure of limited time.
  • Develop skills in designing a sustainability project, that is analytical and data driven, drawing on the theoretical frameworks and understandings developed throughout the course.
  • To critique the process of determining a firms impacts
  • Determine how an audit of the firms impacts informs the firms strategy
  • Become familiar with GRI reporting standards and practice.

Learning Outcomes

The project aligns with the following course learning outcomes;

2. Apply sustainability concepts in the business context

  • Argue the business case for sustainability for an organisation
  • Develop appropriate policies and tactics to address sustainability strategies for the Organisation

Before you start

·        Read all this brief, in particular the notes on reporting, writing style and academic integrity!

  • A Q&A session will take place during the online project workshop in week 4

– Thursday 17th March. During this time students will be introduced to the TBL3 analysis tool, and applied using the Utility Company case study.

  • A dedicated Discussion Forum is set up on Wattle to ask questions [do not email the course convenor or tutor asking questions about the project – by asking in the forum all students, who may well be wondering the same thing, will receive the same answer – direct emails will be ignored]

Project Task

The project involves two (2) parts.

·        Part 1 – Analysis & Reporting [20 marks]

  • Using the TBL3 tool students will undertake an analysis of the ecological impacts of The Bakery Café. Report the firm’s ecological footprint as determined by the analysis of the TBL3 tool and against a minimum of two (2) UN Sustainable Development Goals by selecting an appropriate target and relevant indicator(s)’
    • Benchmark the firms ecological impacts
    • You will report your findings with reference to the GRI Standards.

·        Part 2 – Net Zero Strategy [15 marks]

  • Drawing on your analysis and secondary research you will outline 3 actions the firm should take towards a net zero strategy. (*Net Zero is common term used for carbon neutrality of an organization or a product)

Students will require;

  • A basic understand of financial accounting in particular interpreting an income and profit and loss statement. Introductory Accounting texts are available through ANU Library both physically and online eBooks. Also there a numerous YouTube channels explain P&L’s
  • Basic understanding of Microsoft Excel.
  • Important note – Students will require access to a PC – these are provided on campus in computing labs. The TBL3 analysis spreadsheets only run on a PC Windows machine.

Project Resources

A case study is provided of The Bakery café on the Wattle site, this includes;

  • Overview of the business
  • Breakdown of the firms cost of goods sold (COGS)
  • Detailed financial accounts including Income Statement and Profit & Loss Statement for 2020-2021
  • Explanation of accounts, onsite measures

The following resources are provided in the Project Resource folder on Wattle

  • TBL3 User Manual
  • TBL3 Spreadsheet Folder – The TBL3 software runs as a plug-in to MS-Excel and relies on macros running in the background to perform the calculations and produce the charts and tables. The folder contains the 3 spreadsheets required to undertake the analysis – these must be kept together – see instructions in the TBL3 User Manual
  • GRI Content Index Template
  • Australian Input / Output Accounts 2018-2019 spreadsheet (latest reference period) – here is the link to all ABS Input / Output reports –
  • Sample Sustainability reports that comply with GRI Reporting Standards

Report Structure

You are to produce a report on the firm’s sustainability performance.

While this is not a sustainability report students should consult the Global Reporting Initiative (GRI) standards to inform the development of their report. The GRI Standards Template is provided in the Assignment resource folder as a guide, along with sample reports meeting the GRI standard.

It is acknowledged that compiling a complete GRI compliant report is beyond the scope of this course and requires trained experienced professionals. The aim here is for students to familiarize themselves with the GRI Standards, related industry information/data, their linkage with industry related SDGs and evidenced-based sustainability reporting and strategy.

For this assignment, you are expected to include:

  • A Title Page (optional)* [do not include your student name]
  • Executive Summary (max. half (1/2) page)
  • Table of Contents
  • Introduction (very brief in this case – 1-2 short paragraphs will do e.g., just introduce the topic and the overall aims of the report)
  • Main report body (with numbered headings and sub-headings as required) – this is where you should answer each part of the assignment brief, addressing each part in a logical order.
  • Conclusions (very brief in this case – approx. half (1/2) page will do)
  • Provide a reference list and reference your work using Harvard Business or APA system (no referencing by footnotes). See ANU Library for help –
  • Appendices* (numbered Appendix A, Appendix B, etc.) – this should include all calculation/result tables and any other detailed information/calculations as appropriate.
  • Include;
  • 1.5 spacing, 12pt Times New Roman or Arial (or similar) font, 2.5cm, margin on all sides, page

numbered.

  • Note: The Cover Sheet, Title Page and Appendices do not count towards your 12-page limit. Please number all pages (starting with 1 on the first page after the cover sheet or title page). This is usually done in a footer and is easy to do automatically in MS Word or similar (you may need a ‘section break’ after the title page).

Writing Style

Technical Report Style – This assignment should be written in the form of a technical report, not an essay.

  • Technical reports should be succinctly written, in plain English, in an informative rather than a verbose/descriptive style. For certain parts of the report it may be more effective to use a bullet point list or table format rather than burying those items in a lengthy paragraph.
    • Literature and other sources should be referenced using an appropriate academic referencing style (Harvard or APA style). Present results in graphs that are easy to understand. For example, it is a good idea to aggregate the detailed results in broader categories.
    • The easier your report is for the marker to read and understand, the easier it is for us to see that you’ve done what we’ve asked for, and to give you marks.

Production and consumption of knowledge

I like to point out that there is a difference between the production and consumption of knowledge. Student projects often reflect the process you go through in gathering the evidence and the analysis to address your answer – the production of knowledge. As a result, the paper becomes clogged with information that while it is important, it isn’t important for conveying or promoting your recommendations and actions.

For the consumption of knowledge, a good thing to consider is ‘who is your audience?’ how do they consumer knowledge? As you can imagine it will vary depending on whether it is a government department? Commercial enterprise? Is it a technical person or a creative?

Usually, they want to know first what they should do. Then why and then how you came to your answer. So consider what goes in the body of the report and what goes in the appendix. Also consider the structure of the report.

In this case your client is – The Bakery Cafe Owner

Grading:

The paper will be graded out of 100 and converted to a mark out of 35 by Turnitin.

The mark allocation between sections is indicated above and should be used to direct your efforts.

More specific marking criteria are deliberately not provided as the contents of your report should be guided by your understanding, intuition, use of evidence-based data and creativity, and not by a prescribed format. There are no simple right or wrong answers to this assignment.

The following grades will be applied to each part:

Poor – [Fail] – Lacks application and appropriate effort lacking in depth and breadth and therefore demonstrated understanding.

  • Requires both better preparation and insights from class interaction. And consideration of appropriate standard of scholarly commitment.

Average – [Pass] – Range from a bare pass to a safe pass. Adequate but lacking breadth and depth. Work generally has gaps. Probably takes a more descriptive approach and does not attempt to question or integrate a variety of perspectives.

  • Requires deeper understanding of the concepts in order to better demonstrate stronger grasp of the concepts and ability to integrate further understanding from tutorial interaction.

Good – [Credit] – Work of solid quality showing competent understanding of subject matter and appreciation of main issues, though possibly some lapses and inadequacies; arguments clearly developed and supported by good insight, though possibly with minor loose ends and irrelevancies; some evidence of critical evaluation; well prepared and presented.

  • Requires further development of critical evaluation incorporating tutorial discussion and interaction

Very good – [Distinction] – Work of quality showing strong grasp of subject matter and appreciation of dominant issues, though not necessarily of the finer points; arguments clearly developed; evidence of critical evaluation; solid intellectual work.

  • Requires insights into the finer points and application of the concepts and subject matter and ability to integrate tutorial discussion and interaction as well as bring further novel and insightful argument and critical evaluation.

Excellent – [High Distinction] – Work of exceptional quality showing clear understanding of subject matter and close appreciation of issues; well formulated; arguments sustained by evidence; marked evidence of creative ability and originality; high level of intellectual work; critical evaluations.

  • The best example of work in the cohort. Not perfect but doesn’t need to be perfect to be the best.

Better projects will;

  • Provide argument that is evidence-based (not based on what you think is a good idea but based on your observation, analysis, and secondary research)
  • Demonstrate a strong command of the analysis process by correctly and accurately using the TBL3 tool.
  • Clearly articulate their understanding of the relevant impacts, benchmarks and responsibilities through appropriate use of calculations, graphs and tables produced by the TBL3 tool
  • Frame evidence-based tactics and recommendations on independent secondary research and the TBL3 analysis.
  • Demonstrate a sound understanding of reporting principles.
  • Ability to structure the assignment logically, include everything that was asked, while keeping the report to length. Check spelling and grammar.
  • Ability to apply concepts to real situations, make reasonable assumptions in the face of incomplete or unavailable data, justify a position (e.g., your target EF) – i.e. how well can you think logically, use your initiative, etc.
  • All sources of information been cited appropriately.
  • Show creativity, high quality scholarly and professional presentation and writing – care for the reader.

Poor projects

  • Poorly demonstrated understanding of analysis using TBL3 tool.
  • Incomplete or trivial analysis
  • Lacks logic, evidence-based argument and coherence from observation, analysis and secondary research
  • Poorly undertaken data collection and interpretation.
  • Lack understanding of the analysis process, reporting principles.
  • Insufficient and / or suitable independent secondary research
  • Lack of consideration for the audience – poorly written, presented and lacking quality scholarly and professional practice.

Meeting all project requirements qualifies for a pass but not necessarily a credit or distinction. Exceptional marks depend on how much more you put into the project and the justification of the insights presented, as well as the relative performance of other students just like the ‘real world’.

— end —

Appendix

Some concepts to consider

I have had a Research Assistant gather some information, edit the financial data and test the practice case. He set down these notes as a guide to compiling the report. I include them here as it may help you with your thinking in compiling the report. Note they are not set as a requirement only a guide.

Try and focus on articulating your report using clear, simple, salient and meaningful disclosures.

  • Too much sustainability reporting is based on abstract rhetoric, meaning it is difficult to understand what a firm is doing on a practical level.
  • Be careful about using phrases like ‘committed to sustainability’ or ‘position for the future’, without giving them any context or substantive action. This will make the report easier to read and (hopefully) protect from claims of ‘greenwashing’.

Imagine you are presenting the report to someone with minimal knowledge of sustainability. Therefore, the report should:

  • Present results simply – with minimal rhetoric
  • Build the business case for sustainability – clearly demonstrating how the organisation, and its stakeholders ,will benefit from sustainability, both in the short term and in the long term
  • Avoid, where possible, overusing emotional and moral arguments (e.g. sustainability is the ‘right’ or ‘good’ thing to do). Conservative managers are less likely to be swayed by emotional rhetoric. Rather, try and make the strategic case, based on tangible arguments of the benefits of implementing sustainability in the organisation.

Consider separating the report by scope of emissions (e.g. Scope 1, 2, 3). By separating these by scope. As outlined in Murray and Wood (2010):

  • Scope 1 – direct GHG emissions from sources owned or controlled by the company
  • Scope 2 – GHG emissions associated with the generation of electricity, heating/cooling, or steam purchased for the reporting entity’s own consumption. Scope 2 emissions occur at the facility where the generation of electricity, heating/cooling, or steam takes place
  • Scope 3 – all other indirect GHG emissions. These occur in the companies supply chain (usually only the upstream component is considered – e.g. the company’s suppliers of goods and services).

Key achievements

  • Carefully consider what you claim credit for. Are you overstating your claims for success as in the context of sustainability (e.g. claiming success for wider market conditions, or claiming ‘lucky’ circumstances were the result of strategic planning), while eschewing responsibility for adverse impacts (e.g. neglecting to mention the environmental cost your supply of paper causes on local communities).

Recommendations

  • Recommendations may be tailored to specific actions (e.g. make double-sided b/w printing the default option, turnover 10% of most inefficient vehicles each financial year) or targeted at improving the cultural orientation towards sustainability in the organisation (more on this below). It may be useful to separate the report by having a section dedicated to each of these types of recommendations.
  • Encouraging and rewarding sustainable practices among employees is likely a recommendation application to a high number of firms. This may include:
    • Making sustainability a component of performance review process
  • Financial bonuses for achieving particular sustainability or indicator targets.
  • The aim is to create a culture – and virtuous cycle – of sustainability. This means that it is reinforced throughout the organisation and does not have to rely on a particular department or individual ‘sustainability champions’.

The Business Case for Sustainability

  • A clear business case defines how a given innovation (e.g. recommendation from the report) will add business value or competitive advantage. The business case is often integral to the company’s overall strategy.
    • It might also use criteria with a longer time frame (e.g. higher initial cost, but lower operating cost and lifespan etc.)
  • Carefully consider what general assumptions are you making and how they influence the framing of your recommendations. Are they relevant to your company/industry? e.g.
    • Consumers prefer greener products
    • Consumers will pay a premium for greener products
    • Competitors increasing commitment to sustainability
    • Legislative/political pressure
    • Sustainability adds intangible value to our brand

Choice of Indicators to report on

Carefully consider the indicators you have chosen to assess the organisation’s performance. Check whether the indicators are relevant with the audience (the stakeholders) you address (read materiality review in GRI reporting for better understanding this component)

Why are these most appropriate for this organisation, industry and economy/country? What are the limitations from using these indicators and not others?

What are the limitations of only comparing by sector? For example, it may be possible that an organisation is performing relatively well in an overall poor sector, or relatively well in an overall good sector. If so, what are the implications?

Communicating the findings/recommendations

How can we communicate the findings to senior management, who may have little knowledge of sustainability?

How will we position the findings/recommendations within the organisation:

  • Will the organisation embrace these recommendations in day-to-day operations?
  • Are they practical enough to implement based on the business context
  • Or will they create tension (e.g. create increased pressure to meet targets, be considered as criticism of the culture of the organisation)

How will we position and communicate the findings externally, e.g. to customers, business partners, stakeholders etc?

Addressing organisational barriers to sustainability

Organizational barriers are the barriers that arise from structures, cultures, and behaviors within the firm. These organizational barriers include competing priorities, information gaps, incentive structures, and budget constraints.

These other principles (from the GRI G3 reporting guidelines), may assist in framing your report.

MATERIALITY

The information in a report should cover topics and Indicators that: reflect the organization’s significant economic, environmental, and social impacts, or that would substantively influence the assessments and decisions of stakeholders.

STAKEHOLDER INCLUSIVENESS

The reporting organization should identify its stakeholders and explain in the report how it has responded to their reasonable expectations and interests.

SUSTAINABILITY CONTEXT

The report should present the organization’s performance in the wider context of sustainability.

COMPLETENESS

Coverage of the material topics and Indicators and definition of the report boundary should be sufficient to reflect significant economic, environmental, and social impacts and enable stakeholders to assess the reporting organization’s performance in the reporting period.

Environmental Indicators – as per GRI Reporting Framework

It may assist in structuring the reported environmental indicators from the TBL3 tool by aligning them with the environmental indicators as per the GRI Reporting Framework. MATERIALS

EN1 Materials used by weight or volume.

EN2 Percentage of materials used that are recycled input materials. ENERGY

EN3 Direct energy consumption by primary energy source. EN4 Indirect energy consumption by primary source.

EN5 Energy saved due to conservation and efficiency improvements.

EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.

EN7 Initiatives to reduce indirect energy consumption and reductions achieved.

WATER

EN8 Total water withdrawal by source.

EN9 Water sources significantly affected by withdrawal of water. EN10 Percentage and total volume of water recycled and reused. BIODIVERSIT Y

EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.

EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

EN13 Habitats protected or restored.

EN14 Strategies, current actions, and future plans for managing impacts on biodiversity. EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.

EMISSIONS, EFFLUENTS, AND WASTE

EN16 Total direct and indirect greenhouse gas emissions by weight. EN17 Other relevant indirect greenhouse gas emissions by weight.

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. EN19 Emissions of ozone-depleting substances by weight.

EN20 NO, SO, and other significant air emissions by type and weight. EN21 Total water discharge by quality and destination.

EN22 Total weight of waste by type and disposal method. EN23 Total number and volume of significant spills.

EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff. PRODUC TS AND SERVICES

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

EN27 Percentage of products sold and their packaging materials that are reclaimed by category.

COMPLIANCE

EN28 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations.

TRANSPORT

EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce.

OVERALL

EN30 Total environmental protection expenditures and investments by type.

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