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Introduction: SR And ESG Reporting Of Leading ASX-Listed Consumer Staple Companies
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The report focuses on the environmental, social, and governance measures implied in the corporate activities of the ASX-listed consumer staple companies. Bega Cheese Limited is considered the main company and Woolworths Group, Endeavour Group, and Coles Group as the competitive companies that are listed under ASX. This report concentrates on the environmental, social, and governance of the corporate organization and its activities based on the company's annual report for the year 2022. The report addressed by the CEO, Director, or Chairman of the company is to be taken into consideration for the purpose of comparison. Moreover, this report has also presented the difference between corporate social responsibility and environmental, social, and governance aspects measuring the sustainable and moral activities of the organizations.
Discussion
Difference between CSR and ESG
Corporate Social Responsibility (CSR) and Environmental, Social, and Governance (ESG) reporting are both crucial systems utilized by organizations to show their obligation to sustainability and moral strategic policies. Be that as it may, they contrast in their engagement and capacity.
Corporate Social Responsibility (CSR):
- CSR essentially fixates on an organization's determined initiatives and activities that add to the improvement of society (Jain, 2023). These initiatives go past legitimate commitments and monetary benefits.
- It frequently incorporates generous activities, selfless gifts, local area commitment, and social initiatives pointed toward tending to different cultural complications.
- CSR reporting commonly stresses an organization's commitments to social and ecological causes, moral work practices, and partner commitment.
Environment, Social, and Government (ESG):
- ESG is a more extensive structure that incorporates a more extensive arrangement of observations. It centers on assessing an organization's demonstration and conduct in three key regions: environmental effect, social responsibility, and corporate management.
- ESG detailing is more organized and normalized, frequently utilizing measurements and key performance indicators (KPIs) to quantify an organization's sustainability and social practices.
- It digs into issues, for example, fossil fuel byproducts, assets of the board, variety and consideration, work practices, leader pay, and board diversity.
Thus in all, CSR is a subcategory of ESG detailing. While CSR is much of the time more generous and local area-driven, ESG detailing adopts a more thorough strategy, assessing an organization's sustainability, moral practices, and corporate management in a regularized and measurable way (Kurnoga, et al. 2022). ESG is progressively significant for financial sponsors and associates as it gives a comprehensive perspective on an organization's effect and sustainability implementation.
Comparison of ESG Activities of Top ASX-Listed Consumer Staple Companies
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Comparison of ESG Activities of Top ASX-Listed Consumer Staple Companies |
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Bega Cheese Limited |
Woolworths Group |
Endeavours Group |
Coles Group |
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Company Profile |
This company specializes in the production of “bio-nutrient ingredients” in the market of health and nutrition. This company markets their products through a network of distributors and is available in online and retail stores all over Australia. The company has its headquarters in Bega, New South Wales, Australia. |
They are retail operators of stores and supermarkets in the procurement of liquor, food, and products. They also provide hotel, and accommodation services mainly in Australia, and New Zealand (Woolworthsgroup.com, 2023). |
Endeavours Group is a retail company that has almost 353 hotels. The company was split off from the very giant supermarket Woolworths. But Woolworths still has a 9.1% stake. Steve Donohue who is the CEO of the Endevour group holds a broad role in the Endevours Drink business (S29.q4cdn.com,2023). |
Coles Group is a leading Australian retail conglomerate, serving millions of customers across the nation. Founded in 1914, Coles has grown into a diversified retail giant with a comprehensive portfolio, including supermarkets, liquor, convenience stores, and financial services. |
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ESG Strategy |
The ESG strategies are waste reduction, and sustainable farming to enhance the financial performance of the company in the long run. |
Goals include having zero food waste generated by operations by 2025 and achieving net positive emissions for activities before 2050. |
Endeavors Group is focusing on ESG strategy and sustainability. |
Coles is devoted to an ESG strategy that focuses on manageability and corporate obligation. We are focused on lessening our environmental impression, supporting networks, and cultivating solid governance practices to drive positive change. |
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Environmental Performance |
The company aims at waste reduction and sustainable farming to lower the adverse impact on the environment (de Silva Lokuwaduge & de Silva, 2020). With sustainable farming, the company will try to reduce the methane released by the cows and other dairy animals which is more harmful to nature. |
For this purpose, they use solar energy to save valuable energy resources. In this way, they have reduced by more than 40% energy reduction. In addition to that, they have also designed more than 100 green stores. The company aims to create zero carbon emissions by 2040. |
The company is focusing on minimizing energy and water consumption and also gas emissions. The company achieved an emissions of 640 kg CO2 (Freeburn, & Ramsay, 2021). According to the 2022 ESG report, the company achieved the target to reuse almost 70% water. |
Coles is effectively attempting to diminish our fossil fuel byproducts, dispose of single-use plastics, and advance economically, guaranteeing a greener future for all. It has gained huge headway in waste decrease and energy productivity. |
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Social Performance |
The company has removed 1,000 tonnes of added sugar from the Bega Dairy and drinks portfolio since the year 2020, thereby, reaching the goal of social performance two years earlier than anticipated (begagroup.com.au, 2023). |
They usually invest in local programs, in the relief fund for natural disasters, and they make partnerships to provide support to their community and to expand their business. |
The company almost serves 1000 customers across 1000 communities every day. The company actively working on reducing its environmental footprint through great innovation reduction of waste initiatives and energy efficiency. |
It invests wholeheartedly locally in engagement, supporting neighbourhood drives, and cultivating variety and incorporation inside the labor force. |
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Governance Practices |
The company has reviewed the supply chain resources and found that 100% of high-risk suppliers have completed an independent compliance audit and the palm oil sourced in 2022 was certified as Segregated under RSPO. |
They provide a commitment to or evidence of familiarity with best practices in corporate governance. They include several governance policies in their operations including safety, health, and well-being policies, “supplier training terms”, etc. |
The company has zero fatalities and also reduces TRIFR. The company is also looking after its employees’ wellbeing. The company established a “Diversity Steering Committee”. |
Coles sticks to powerful governance and standards, guaranteeing straightforwardness, responsibility, and moral directness at all levels of the association. |
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Risk Assessment |
The company faces challenges from climatic inclinations and more severely from dairy animal disease. |
Woolworths Group faced challenges from inclement weather, logistics interruptions, and COVID-19's effect on the workforce and consumers. |
Endeavors Group faces many challenges regarding market risk and ESG risk. |
The thorough risk assessment processes permit the firm to distinguish and relieve expected dangers, defending the activities and stakeholders. |
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Stakeholder Engagement |
The Vanguard Group and others are the company’s investors and thereby, support the sustainable and moral practices of the company as stated in the report. |
Woolworths Group actively advocates for sustainable growth and the creation of mutually beneficial values by prioritising stakeholder engagement via open communication, collaborative cooperation, and adherence to ethical company standards. |
Through financial reporting updates and involvement with investor performance, the company stays with its stakeholders. |
Coles values open correspondence with stakeholders, integrating their criticism into dynamic cycles. |
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Awards and Recognition |
National Energy Efficiency award was achieved by the company in 2022. |
Woolworths won the “Gold Banksia Award” and “the Large Business Sustainable Leadership Award” for its groundbreaking transformational project, considered one of the largest and most significant in the Australian industry. |
The company got the “Supplier of the Year” Award among 170 brand nominations. |
In 2022 Coles won “Product of the Year” for the manufacturing of innovative choco chips cookies and other products (Colesgroup.com.au,2023). |
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Future Goals |
Bega Cheese Limited aspires to serve the best dairy products in Australia and attain the ultimate customer love and loyalty. |
The Woolworths Group aspires to establish itself as a frontrunner in the realm of sustainable retail, enhance customer experience, boost online shopping capabilities, reduce carbon emissions, and concurrently foster civic engagement and ethical behavior. |
The company wants net zero emissions by 2050 and the company wants to have 100% renewable electricity by 2030 |
The future goals incorporate further diminishing our environmental effect, improving variety and consideration, and proceeding to be a mindful corporate resident. |
Conclusion
Within this investigation, the consumer staple firms being investigated, ly Bega Cheese Limited, Woolworths Group, Endeavour Group, and Coles Group, exhibit a strong commitment to actively engaging in ESG activities. The organisation showcases its dedication to sustainability through its focus on mitigating negative environmental impacts, fostering social responsibility, and adhering to sound governance principles. These firms have established rigorous benchmarks and garnered acclaim for their achievements. With the increasing significance of environmental, social, and governance (ESG) performance, these organisations position themselves as conscientious entities that actively promote transformation, mitigate risks, and engage stakeholders in the endeavour to achieve a future that is healthier for all.
References
Journals
- de Silva Lokuwaduge, C. S., & de Silva, K. (2020). Emerging corporate disclosure of environmental social and governance (ESG) risks: An Australian study. Australasian Accounting, Business and Finance Journal, 14(2), 35-50. [Retrieved from: https://ro.uow.edu.au/cgi/viewcontent.cgi?article=2098&context=aabfj] [Retrieved on: 3.10.2023]
- Freeburn, L., & Ramsay, I. (2021). An analysis of ESG shareholder resolutions in Australia. University of New South Wales Law Journal, The, 44(3), 1142-1179. [Retrieved from: https://www.unswlawjournal.unsw.edu.au/wp-content/uploads/2021/09/Issue-443_final_Freeburn-Ramsay.pdf] [Retrieved on: 3.10.2023]
- Gillan, S. L., Koch, A., & Starks, L. T. (2021). Firms and social responsibility: A review of ESG and CSR research in corporate finance. Journal of Corporate Finance, 66, 101889. [Retrieved from: https://sites.pitt.edu/~awkoch/CSR%20review%20JCF.pdf] [Retrieved on: 3.10.2023]
- Hou, S., Shen, J., Yu, C., & Zhou, S. (2023). Heterogeneity in the Integration of ESG Measures in Executive Compensation: Determinants, Contracting Details and Outcomes. Contracting Details and Outcomes (April 12, 2023). [Retrieved from: https://www.zbw.eu/econis-archiv/bitstream/11159/618320/1/EBP096278854_0.pdf] [Retrieved on: 3.10.2023]
- Kurnoga, N., Šimurina, N., & Fu?kan, F. (2022). Performance Differences between ESG Indices and Conventional Market Indices: a Multivariate Analysis of Indices. Zagreb international review of economics & business, 25(SCI), 85-103. [Retrieved from: https://hrcak.srce.hr/file/414857] [Retrieved on: 3.10.2023]
- Jain, A. (2023). ENVIRONMENTAL SOCIAL AND GOVERNANCE ESG FACTORS AND FINANCIAL PERFORMANCE AN ANALYSIS OF INVESTORS SAGACIOUSNESS TOWARDS ESG IN INDIA. [Retrieved from: https://shodhgangotri.inflibnet.ac.in/bitstream/20.500.14146/13901/1/synopsis.pdf] [Retrieved on: 3.10.2023]
Websites
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- Begagroup.com (2023). Retrieved from: https://begagroup.com.au/reports/2022-annual-report/. [Retrieved on: 3.10.2023]
- Woolworthsgroup.com, corporate governance statement (2023). Retrieved from: https://www.woolworthsgroup.com.au/content/dam/wwg/investors/reports/2022/full-year/2022%20Corporate%20Governance%20Statement.pdf [Retrieved on: 3.10.2023]
- S29.q4cdn.com, Endeavor Annual Report. (2023). https://s29.q4cdn.com/745718849/files/doc_financials/2022/ar/2022-Endeavor-Annual-Report.pdf [Retrieved on: 3.10.2023]
- Colesgroup.com.au, 2022 annual report (2023). https://www.colesgroup.com.au/FormBuilder/_Resource/_module/ir5sKeTxxEOndzdh00hWJw/file/Annual_Report_2022.pdf [Retrieved on: 3.10.2023]
