3. Outline
1. Summary of the Article
2. Critical Review based onWorld Context and Sri Lankan Context
3. Sustainability reporting in Sri Lanka
3.1 Banking finance and insurance sector
3.2 Construction and engineering
3.3 Food & Beverage
4. Conclusion
4. Summary of the Article
▪ Who are M.J. Milne and R. Gray?
▪ Key arguments
- Insufficiency inTBL 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
5. Summary of the Article
- Authors stated three obscured notions;
(i) maintain balance score card between entity’s value, strategies, practices andTBL.
(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’.
6. 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
7. Critical Review based on World Context and Sri Lankan Context
World Context
Source : M. Munasinghe (1995) “Making growth more sustainable” Ecological Economics
Sri Lanka
9. Sustainability Reporting in Sri Lanka
Sri 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 frameworks
CEA, UDA, BOI, SLLRDC
▪ Engineering way of addressing sustainability
- Adaptation
- Mitigation
10. 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 pollutingThames River for their
production process.
11. 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
12. 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.
13. Conclusion
▪ Regulatory frameworks for sustainability
▪ Organizations have to comply with rules & regulations governed by;
World organizations : UNEP,WNO, IPCC,EEA
Local 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