Case Study

“W(h)ither Ecology? The Triple Bottom Line, the Global Reporting Initiative

and Corporate Sustainability Reporting”Markus J. Milne • Rob Gray

Group Assignment by Group Number:

Outline

1. Summary of the Article2. Critical Review based on World Context and Sri Lankan Context3. Sustainability reporting in Sri Lanka 3.1 Banking finance and insurance sector 3.2 Construction and engineering 3.3 Food & Beverage4. Conclusion

Summary of the Article

▪ Who are M.J. Milne and R. Gray?

▪ Key arguments- Insufficiency in TBL towards sustainability and at the

same time it leads to un-sustainability- In capitalist system, are decision makers capable of

operating within the constraints of sacrificing the profit to protect resources and ecosystems for future?

- Organization left virtually unaddressed issues of footprints, carrying capacities, equity and social justice even they called sustainability throughout the reports

Summary of the Article

- Authors stated three obscured notions; (i) maintain balance score card between entity’s value, strategies, practices and TBL. (ii) Reporting integrated with 3 elements,(iii) the meld of idea of conversional sustainable development. Therefore, these three meanings are mutually supportive and cannot be floated independently.

- Authors have been able to introduce ‘sustainability gap’ which is basically the difference between actual and optimum condition and then, necessity of ‘ecological thinking’.

Critical Review based on World Context and Sri Lankan Context

We partially agree with the writers’ view by evaluating with respect to Sri Lankan context What are these?▪ TBL-is an accounting framework with three parts: social, environmental (or

ecological) and financial. ▪ GRI-The Global Reporting Initiative (GRI) is an independent institution whose

mission is to develop and disseminate globally applicable sustainability reporting guidelines that help organisations to report on the economic, environmental, and social dimensions of their activities, products, and services.

▪ IR-is a concise communication about how an organization's strategy, governance, performance and prospects lead to the creation of value over the short, medium and long term

Critical Review based on World Context and Sri Lankan Context

World Context

Source : M. Munasinghe (1995) “Making growth more sustainable” Ecological Economics

Sri Lanka

Critical Review based on World Context and Sri Lankan Context

Sri Lankan Context

Sustainability Reporting in Sri LankaSri Lankan Context- Construction and engineering“TBL is very unlikely to be a sufficient condition for sustainability, and indeed may lead to greater levels of un-sustainability.”▪ Environmental Impact Assessment (EIA)

Ensure minimum damage to the environment

▪ Institutions monitor the regulatory frameworksCEA, UDA, BOI, SLLRDC

▪ Engineering way of addressing sustainability - Adaptation- Mitigation

Sustainability Reporting in Sri Lanka

- Food & Beverage Sustainability report of C0ca-cola covers four objectives in relation to the sustainable development, with water stewardship being one priority.“…..Furthermore, it is quite clear that reporting and performance are not the same thing ….”▪ Coca-Cola was found guilty for leaking diesel into Kelani River in mid-2015

and also accused of pressurizing the SL government to settle the issue out of courts

▪ CEA brought on the steps to suspend Coca-Cola Sri Lanka’s production together with a huge fine

▪ United Kingdom also has serious accused Coca-Cola on polluting Thames River for their production process.

Sustainability Reporting in Sri Lanka

Sri Lankan Context- Banking, finance and insurance sector▪ Is there any contradiction between profitability and  sustainability?”business would have us believe that there is no such conflict that financial success and sustainability can be mutually consecutive”

Organization has to bear some cost regarding sustainability implementation. But it is long term investment for economically, socially and environmentally viable organization.

BOC has earned LKR 20.3 billion in 2014 while spending….- LKR 20 million for Ram Kekulu Scholarship- LKR 15.5 million for constructing Ayurveda Hospital- LKR 2 million for National Hospital development

Sustainability Reporting in Sri Lanka

- Banking, finance and insurance sector

Moving towards a sustainable solutions....- Paperless working environment - Recycling waste paper - Planting trees and funding hydro power generation

Banking sector has to create awareness among public about pyramid schemes.

Conclusion

▪ Regulatory frameworks for sustainability▪ Organizations have to comply with rules & regulations governed by;

World organizations : UNEP, WNO, IPCC,EEALocal organizations : CEA, CAA, G4 guidelines, SLSI

▪ Companies should report measures that they have taken for sustainable development in their annual reports and due to the continuous improvements in reporting standards ( GRI G4) corporates voluntarily persuade to perform more sustainable practices

▪ We can be optimistic about the future expecting continuous improvement of sustainability guidelines

Thank You