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ACCA MALAYSIA SUSTAINABILITY REPORTING AWARDS (MaSRA) 2013
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contents
Introduction 4
PanelofJudges 7
2013Entrants 8
Short-listedReports 10
ACCAMaSRA2013Winners 13
Judges’Comments 20
SupportingOrganisation 22
AboutACCA 23
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Acrosstheglobe,CorporateSocialResponsibility(CSR)isbecomingincreasinglyintegraltobusinessasregulatorsandstakeholdersexpectcompaniestobehaveresponsiblyandsustainably.Indeed,CSRisgaininggroundasabenchmarkandcriterionformarketcompetitivenessandinvestmentdollars.RecognisingtheglobalmomentumoftheCSRmovement,theACCAMaSRAaimstochampionCSRandsustainabilityinMalaysiabyhonouringthecompaniesthatdemonstratethehigheststandardsinsustainabilityreporting.
After a year’s hiatus, the ACCA Malaysia Sustainability Reporting Awards (MaSRA) 2013 returns with the theme of ‘Diversity and Inclusion’. ACCA and Talent Corporation Malaysia Berhad (TalentCorp) – its supporting partner for ACCA MaSRA 2013 – would like to thank all the companies that participated this year.
TheACCAMaSRA2013isnotjusttimely,butitisalignedwithongoingglobalinitiativestoembedsustainabilityreportingincorporatedisclosureandstrategy.
Lastyear,Paragraph47(P47)oftheUnitedNationsRio+20EarthSummit’soutcomedocumentprovidedexplicitsupportfortheconceptofsustainabilityreportingbylistedandlargecompanies.Subsequently,aconsortiumofgovernmentsthenformedaGroupofFriendsofParagraph47tosupportandupholdsustainabilityreporting.
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introduction
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Sustainabilityshouldencompassmorethanpublic-listedcompaniestobemeaningful,sincesmallandmediumenterprisesandprivately-heldcompaniestoohaveatremendousimpact.TheUNGlobalCompact’s(UNGC)TriennialLeaders’SummitinNewYorkonSept20,2013unveiledanewbusinessengagementstructureaimedatencouragingprivatecompaniestoleverageonsustainabilitydevelopmentandreporting.
Meanwhile,majorinvestorsandotherthoughtleaders–includingACCA–continuetokeepupthepressurethroughtheCorporateSustainabilityReportingCoalition(CRSC),whichworkstolobbygovernmentstodevelopnationalregulationsmandatingtheintegrationofmaterialsustainabilityissuesincompanies’annualreportsandaccounts.
Evolvingstandardsarevitaltocontinuouslyimprovingthequalityofsustainabilitydisclosure.TherecentlaunchofthefourthgenerationofsustainabilityreportingguidelinesG4byGlobalReportingInitiative(GRI)inMay2013isyetanotherstepupinelevatingsustainabilityreporting.ReplacingtheG3.1Guidelines,G4ismoreuser-friendlyandencouragesorganisationstoreportonlyoninformationthatismaterialtotheirbusiness.G4guidesorganisationsandusersofthereporttofocusonmaterialsustainabilityimpacts,resultinginreportswhicharemorestrategic,focused,credibleandeasierforstakeholderstonavigate.TheG4guidelinesalsoincludednewandupdateddisclosuresongovernance,
introduction
supplychain,greenhousegasemissionsandothercriticalissuestoimprovecomprehensivenessandcompleteness.
TherevisedguidelineswillbecompatiblewiththeIntegratedReportingframeworkwhichwillbelaunchedbytheInternationalIntegratedReportingCouncil(IIRC)inDecember2013.Thiswillmakeitmucheasierfororganisationstounderstandthesynergiesandlinkagesinthesestandards,andusetheminconjunctionwithoneanother.However,inlightoftheearlycut-offsubmissiondate,thecompaniesparticipatinginACCAMaSRA2013wereassessedagainsttheG3.1standards.
MalaysiahaslongrecognisedtheimportanceofCSRasadifferentiatoranditcontinuestostrengthenitsreputationasaleaderandchampionofsustainabilityreportinginAsia.Studiesshowthatmorelocalcompaniesandlocalsubsidiariesofmultinationalcorporations(MNCs)issuesustainabilityreportscomparedtotheirpeersinothercountriesintheregion.
Tosustainthemomentum,theMalaysiangovernmentandregulatorscontinuetoincentiviseandencouragebestpracticesandgoodgovernanceinordertobuildarobustandsupportivelocalinfrastructureforCSRandsustainability.
DuringtheBudget2014presentation,PrimeMinisterDato’SeriNajibTunRazakannouncedthateffortswouldbeintensifiedtowardspromotingMalaysiaasamarketforSocialResponsibleInvestments(SRI).
Furthermore,anEnvironment,SocialandGovernance(ESG)Indexwillbelaunchedinthenearfutureto“raisetheprofileoflistedcompanieswhichhavehighsociallyresponsiblepractices”.
Inaddition,thegovernmentwillestablishaSRIFundmandatedtoinvestinlistedcompaniesthatdemonstratehighaccountability,transparencyandsustainability,includinginclusivenessindiversityencompassinggender,ageandethnicity.
ACCAMaSRA2013receivedatotalof48entries.Thereportswereinitiallyscoredandrankedbyashortlistingpanelofjudges;theynarroweddowntothefieldtothetop16companieswhichwerethenevaluatedbythemainjudgingpanel.Oftheshortlistedentries,11werestand-alonesustainabilityreportsandfiveweresustainabilityreportswithinannualreports.
Reflectingglobaltrendsindiversityandinclusion,ACCAMaSRA2013introducedanewawardcategory:ReportingonGenderDiversity.Thiscategorywascreatedtorewardtheorganisationthatbestreportsontheirpoliciesandpracticesofsupportingwomenintheworkforce.DuringthelaunchofMaSRA2013inFebruary,then-MinisterinthePrimeMinister’sDepartmentTanSriNorMohamedYakcopnotedthatMalaysiahasalabourparticipationrateforwomenof46%,whichisrelativelylowcomparedtoourimmediateneighboursSingapore(60%)andThailand(70%).AccordingtoTalentCorp,thismeansthat
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manyMalaysianwomenareexcludedfromtheworkforce,duetoreasonsrangingfromperceivedinequalityofemploymentopportunitiesandpractices,socialnorms,familyobligationsthatneedtobemet,aswellasself-limitingbeliefs.
NorMohamedemphasisedthatwomen’sparticipationintheworkforcewasakeyagendaforMalaysia,andthecountryneedstounlockthepotentialofhalfthepopulation–whichwillsucceedorfaildependingmainlyontheeffortsofcorporateMalaysia.
Aswithanynewly-introducedcategory,thenumberofreportswhichcouldbejudgedbasedonthereportingcriteriaforGenderDiversitywaslimited.Nosinglecompanystoodoutindiversityreporting,althoughtherewerecommendableattempts.However,itishopedthatACCAMaSRA2013’sinclusionofaGenderDiversityReportingAwardwillstimulatecorporateinterestindiversityandencouragemorecompaniestopursueacultureofdiversityandinclusionwhichcanonlyhavepositivebenefitsforwomen,minorities,familiesandultimately,societyatlarge.
Onafinalnote,itisencouragingtoseeanincreasingnumberofcompaniesembracingsustainabilityreporting,inameaningfulandcomprehensivemanner.Cyclebycycle,theACCAMaSRAjudgescollectivelyhaveseensignificantimprovementsinthequalityofsustainabilityreportinginMalaysia.Thisisatestamenttocompanies’genuinecommitmenttobecomingmoresociallyresponsibleandaccountabletotheirstakeholders.
ACCAcontinuestobecommittedtothevaluesoftheworldwidesustainabilityinitiativeandwelookforwardtoyourparticipationintheACCAMaSRA2014.
introduction
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THE ACCA MaSRA 2013 JUDGES
Mr Goh Ching Yin*ExecutiveDirector,Strategy&Development,SecuritiesCommissionMalaysia
Ms Selvarany RasiahChiefRegulatoryOfficer,BursaMalaysiaBerhad
Y Bhg Dato’ Abdul Rauf RashidCountryManagingPartner,EYMalaysia
En Johan Mahmood MericanChiefExecutiveOfficer,TalentCorporationMalaysiaBerhad
Ms Anna TaingManagingEditor,TheEdgeCommunicationsSdnBhd
Dr Faizah Darus**HeadAsia-PacificCentreforSustainability(APCeS),UniversitiTeknologiMara(UiTM)
Dr Ho Jo Ann**SeniorLecturer,FacultyofEconomicsandManagement,UniversitiPutraMalaysia
Mr Ng Kean Kok**DeputyDean,DepartmentofFinance,UniversitiTunkuAbdulRahman
*Chairmanofjudgingpanel**Memberoftheshortlistjudgingpanel
panelofjudges
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Amway (Malaysia) Holdings Berhad AnnualReport2012:PlacingYourFutureinGoodHands
Astro Malaysia Holdings Berhad InspiringSustainability2011/2012
Bintulu Port Holdings Berhad CorporateSustainabilityReport2012
British American Tobacco (Malaysia) Berhad AnnualReport2012:Celebrating100Years
Chemical Company of Malaysia Berhad AnnualReport2012:LivingAhead,InspiringGrowth
Citibank Berhad AnnualReport2012
Convergys Malaysia NurturingWomenintheWorkplace
DiGi Telecommunications Sdn Bhd SustainabilityReport2012:MakingInternetForAllAReality
DRB-Hicom Berhad AnnualReport2012:SeizingOpportunities,SensingPotential
Encorp Berhad SustainabilityReport2011
Faber Group Berhad SustainabilityReport2011
Faber Group Berhad AnnualReport2012:BuildingValueTogether
Felda Global Ventures Holdings Berhad AnnualReport2012
Guinness Anchor Berhad CorporateResponsibilityReport2011:Together,WeBrewSustainability
Helikonia Advisory Sdn Bhd SustainabilityReport2012
Indah Water Konsortium Sdn Bhd SustainabilityReport2011:MakingADifferencetoOurLivesandEnvironmentviaAGreenerTodayForACleanerandSaferTomorrow
Intel Technology Sdn Bhd 2011CorporateResponsibilityReport:FocusonMalaysia
KKB Engineering Berhad AnnualReport2012
KPJ Healthcare Berhad AnnualReport2012:CareForLife
Kulim (Malaysia) Berhad AnnualReport2012
Kulim (Malaysia) Berhad ANewRoadforSustainableGrowth:SustainabilityReport2010/2011
Lafarge Malayan Cement Berhad AnnualReport2012:AdvancingSustainability
Mah Sing Group Berhad AnnualReport2012
2013entrants
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entrants2013
Malayan Banking Berhad GrowingProfitablyandResponsibly:SustainabilityReport2012
Malaysia Airports Holdings Berhad SustainabilityReport2012:ConnectingWithYou
Malaysia Airports Holdings Berhad AnnualReport2012:ConnectingWithYou
Malaysian Resources Corporation Berhad AnnualReport2012:KLSentralCentralBusinessDistrict
Malaysian Resources Corporation Berhad SustainabilityReport2012:OurCommitmenttoGreen
Maxis Berhad SustainabilityReport2011/2012:ImpactingLives,ImpartingHope
Media Prima BerhadAnnualReport2012:SettingNewStandards
Media Prima Berhad SustainabilityReport2012:SettingNewStandards
MSM Malaysia Holdings Berhad AnnualReport2012
Naim Cendera Holdings Berhad AnnualReport2012:GrowingStronger,EmbracingChange
Nestlé (Malaysia) Berhad AnnualReport2012
Nestlé (Malaysia) Berhad CreatingSharedValueReport2012
Nets Printwork Sdn Bhd SustainabilityReport2011
QL Resources Berhad SustainabilityReport
RHB Banking Group CorporateSustainabilityReport2012
Sime Darby Berhad SustainabilityReport2011:DevelopingSustainableFuture
Sunway Group Berhad Diversity&Inclusion–SupportingWomenintheWorkplace2013
Sunway Group Berhad AnnualReport2012:OneTeamVision
Telekom Malaysia Berhad SustainabilityReport2012:Sustain
UEM Environment Sdn Bhd SustainabilityReport2012:Grow
UEM Sunrise Berhad SustainabilityReport2012:EmbracingSustainableLiving
WCT BerhadAnnualReport2012:BuildingValues
YTL Corporation Berhad AnnualReport2012:TheJourneyContinues
YTL Corporation Berhad SustainabilityReport2012:TheJourneyContinues
Yung Kong Galvanising Industries Berhad AnnualReport2012:Strong&Sustainable
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Growing
Profitablyand Responsibly
SuStainability RepoRt 2012
STAND ALONE CATEGORY
1 DiGi Telecommunications Sdn Bhd SustainabilityReport2012:MakingInternetForAllA
Reality
2 Guinness Anchor Berhad CorporateResponsibilityReport2011:Together,WeBrew
Sustainability
3 Indah Water Konsortium Sdn Bhd SustainabilityReport2011:MakingADifferencetoOur
LivesandEnvironmentviaAGreenerTodayForCleanerandSaferTomorrow
4 Kulim (Malaysia) Berhad ANewRoadforSustainableGrowth:SustainabilityReport
2010/2011
5 Malayan Banking Berhad GrowingProfitablyandResponsibly:SustainabilityReport
2012
6 Maxis Berhad SustainabilityReport2011/2012:ImpactingLives,
ImpartingHope
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4
short-listedreports
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11
short-listedreports
7 Media Prima Berhad SustainabilityReport2012:SettingNewStandards
8 Nestlé (Malaysia) Berhad CreatingSharedValueReport2012
9 Nets Printwork Sdn Bhd SustainabilityReport2011
10 Sime Darby Berhad SustainabilityReport2011:DevelopingSustainableFuture
11 UEM Sunrise Berhad SustainabilityReport2012:EmbracingSustainableLiving
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9 10
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ANNUAL REPORT CATEGORY
1 British American Tobacco (Malaysia) Berhad AnnualReport2012:Celebrating100years
2 DRB-HICOM Berhad AnnualReport2012:SeizingOpportunities,SensingPotential
3 KPJ Healthcare Berhad CareForLife:AnnualReport2012
4 Lafarge Malayan Cement Berhad AnnualReport2012:AdvancingSustainability
5 Sunway Group Berhad AnnualReport2012:OneTeamVision
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short-listedreports
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OVERALL WINNER – BEST SUSTAINABILITY REPORT (JOINT WINNERS)MalayanBankingBerhadMediaPrimaBerhad
WINNER – REPORTING WITHIN AN ANNUAL REPORTBritishAmericanTobacco(Malaysia)Berhad
WINNER – BEST FIRST-TIME REPORTERSimeDarbyBerhad
COMMENDATION – PRODUCT RESPONSIBILITYGuinnessAnchorBerhad
COMMENDATION – REPORTING ON GENDER DIVERSITYMalayanBankingBerhadNestlé(Malaysia)Berhad
COMMENDATION – SUSTAINABILITY REPORTING IN SMEsNetsPrintworkSdnBhd
ACCAMaSRA2013winners
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ACCAMaSRA2013winners
OVERALL WINNER – BEST SUSTAINABILITY REPORT (JOINT WINNER)
Malayan Banking Berhad
Thereportshowssignificantimprovementinqualityandcomprehensivenesscomparedtoitsprevioussustainabilitydisclosures.
MessagesfromtheChairmanandChiefExecutiveOfficer(CEO)demonstratetonefromthetopandseniormanagementsupportforsustainabilityinitiatives.Thereportclearlycommunicatestheorganisation’sandleadership’spervasiveandrobustcommitmenttowardsacultureofsustainability.
Thereport’sfocusoneducationandmicro-financingdemonstratesvigorousemployeeandcommunityengagementandcommitmenttowardsthebank’sstrategicgoalsoftalentdevelopmentandfinancialinclusion.
Differentiateditselffromotherparticipants’reportsbyincludingdisclosureonenvironmentalimpactsandconservation,whicharenotwithintheconventionalframeworkofthebankingbusiness.
ExternalthirdpartyassuranceraisesreportingcredibilityandstakeholderconfidencewhiletheGRIApplicationLevelCheckbenchmarkedthereportagainstcurrentGRIdisclosurestandards.
Thereportincludedextensivequantitativehistoricaldataoverafive-yearperiodtosupportthecompany’sstatementsonsustainabilityandtrendanalysis.
Theeye-catching“GenY-friendly”layoutanddesignfeaturedabalanceduseofphotos,textandgraphics.
Theinclusionofaclearanduser-friendlymaterialitymatrixidentifiesandprioritisesissuesthatarehighlymaterialtothebusinessandstakeholders.
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OVERALL WINNER – BEST SUSTAINABILITY REPORT (JOINT WINNER)
Media Prima Berhad
Thisstandalonereportdemonstratesoutstandingcomprehensivenessandcompleteness.
Thereisaclearemphasisonmaterialitythroughtheidentificationandprioritisationofkeystrategicissuesanddisclosureofmaterialityandimpacts.
DemonstratesthoroughcompliancewithGRIguidelinescommensuratewithaGRIratingofA+.
Clearlyexplainshowsustainabilitystrategyisintegratedintothecompany’scorebusinessstrategy.
Providesextremelycomprehensivedata,includingdisclosureofbreakdowns,benchmarksandstatistics.Notably,thereportincludesdetailedinformationonemployeeengagement,includingabreakdownofbenefitsforemployeesacrosstheboard(e.g.thepilgrimagebenefitsforbothMuslimandnon-Muslimstaff).
Theinclusionofathird-partyenvironmentalimpactassessmentreportandexternalassurancecertificationincreasescredibilityandstakeholderconfidence.
Keystakeholderissuesweredisclosedandmappedagainstthelevelofimpactontheirbusinessandimportancetotheirstakeholders.
Companyleveragedmediaplaformsandchannelspositivitytoreachouttovarioussegmentsofthecommunity.
Thereportscoredhighlyforpresentation,makingamemorableimpressionwithitsaestheticlayoutwithclearandsimpletext.
ACCAMaSRA2013winners
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ACCAMaSRA2013winners
British American Tobacco (Malaysia) Berhad
ThereportcompliedseamlesslytoGRIstandards,andstoodoutforitmappingofkeyissuesaccordingtoGRIrequirements.
Thereportprovidedbalanceddisclosureinthefourareasofsustainabilityimpacts–environment,marketplace,workplaceandcommunity.
Thereportwasjudgedtobemostcompleteandcomprehensiveamongalltheshortlistedreportswithinanannualreport.
Despitethenegativeimpactsonbrand,performanceandmarketperception,thereportincludedpicturesofthecompany’sgraphichealthwarningsoncigarettepackagingandacknowledgedtheproducts’effectsandrisksonconsumers,themarketplaceandthecommunityatlarge.
Detailedandaestheticallyappealingstatisticsandgraphicsfleshedoutthetext.
WINNER - REPORTING WITHIN AN ANNUAL REPORT
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WINNER – BEST FIRST-TIME REPORTER
Sime Darby Berhad
Thereportdemonstratedanimpressivestandardofdisclosureforafirst-timereporter.
Thereportwasverycomprehensiveandcomplete,providingabroadoverviewofthecompany’ssustainabilitydevelopmentstrategiesandtheoutcomes.
Thecompanyevidentlyinvestedsignificantefforttowardsthepreparationofthesustainabilityreport.
Thereportisverywell-balancedintermsofpresentation–thelayout,reportingandfactsweremeticulouslythought-outandeasytonavigateandunderstand.
Thereportprovidesaclearandconcisesummaryofthecompany’ssustainabilityperformance–showingitsobjectives,performancetodateandfutureactivitiesplanned.
ACCAMaSRA2013winners
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ACCAMaSRA2013winners
COMMENDATION – REPORTING ON GENDER DIVERSITY
Malayan Banking Berhad
Morethan30%ofthecompany’sC-suitelevelexecutivesconsistofwomen,demonstratingthatthecompanyistranslatingpolicyintoactionableoutcomes.
ThereportclearlydisclosedinformationonDiversityandInclusionpoliciesandperformance,includingstatisticsthatwomenform54%ofthecompany’sworkforceand41%populatemiddleandseniormanagementlevels.
Thecompanyadvocatesinvestinginhighereducationforgirlstoachievelong-termimpactsandimprovesocialandcommunitywellbeing.Asanintegralpartofitsadvocacy,thecompanydisclosedthatitawardedRM1.8millioninscholarshipsforwomentoattendtheAsianUniversityintheperiodunderreview.
COMMENDATION – REPORTING ON GENDER DIVERSITY
Nestlé (Malaysia) Berhad
Policiesongenderdiversityarebackedupbypositiveactionsandoutcomes:42%ofwomenareinleadershippositions,with11%femalerepresentationontheBoardofDirectors.
Thereportprovidestransparentanddetaileddisclosureontherateandtotalnumberofemployeesleavingemploymentbygender.
Thereporttransparentlydisclosestheratiooffemale/malesalariesaccordingtostaffranking:TopManagement,SeniorManagement,MiddleManagement,ExecutivesandNon-Management(unionised).
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COMMENDATION – PRODUCT RESPONSIBILITY
Guinness Anchor Berhad
Displaysadmirablebalancebetweentheattainmentofbusinessobjectivesandthepursuitofsustainabilityinitiativesandstakeholderengagement–suchasthe“DrinkResponsibly”campaign–whichcouldbedetrimentaltobusinessperformance.
Thereportclearlydocumentstheadoptionoftheriverbehinditsfactory,furthervalidatingGAB’senvironment-friendlycredentials.
Thereportsignalsthatthecompanyisadoptingamorepoliticallycorrectapproachtomarketingandadvertisingthatcentersonengaginggender-neutraladvertisementsinsteadoftheold-styleadswhichobjectifywomen.Thereporttransparentlyincludedaside-by-sidecomparisonoftheoldadswiththenew,whichcouldstandasevidenceofGAB’scommitmenttomoreholisticstakeholderengagement.
ACCAMaSRA2013winners
COMMENDATION – SUSTAINABILITY REPORTING IN SME
Nets Printwork Sdn Bhd
Thecompany’spresentationwasveryinteresting–style-wise,thereportcommunicateditssustainabilitystrategiesandoutcomesinaneasy-going,pleasantandengagingmanner.
Thecompanyhassignedanintegritypledge,andcontinuestobeseriousinitscommitmenttosustainabilitypractices.
ThequalityofthereportisastoundingforsuchaSmallandMediumEnterprise(SME),andthejudgesunanimouslyfeltthatitdeservedacommendationinrecognitionofitsefforts.ThisinturnishopedtoencouragemoreSMEstoembarkonvoluntarysustainabilityreporting.
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Thejudgesrecognisethatsustainabilityreportingisalearningprocess,andeachreportwilldifferinitsstrengthsandweaknesses.Inordertoguideparticipantstoimproveonthequalityoftheirfuturesustainabilityreports,andtoencourageandsharetipswithorganisationsthatareplanningtoembarkontheirownsustainabilityreportingjourney,thejudgeshavecompiledalistofrecommendationsbasedontheirreviewofthisyear’sawardsentries.
Thejudgeswereelatedtonotethatthisyear’sentriesshowedasignificantimprovementintermsofreportingquality,suchthatshortlistingthefinal16reportswashighlychallenging.Itwasnoteworthythatmoreandmorelocalconglomeratesaresteppinguptomakesustainabilityreportinganintegralpartoftheircorporatereporting,whetherwithintheirannualreportsorasstandalonereports.Commendably,someofthemareequallymatchedwithmultinationalcompaniesintermsofsustainabilityreporting.
Furthermore,manyoftheleadingreportershaveclearlygonebeyondcompliance,makingdisclosureanintegralpartoftheircorporatestrategyandstakeholderengagementinitiatives.Judgesnotedthattherewasacleardistinctionbetweenthisyear’sentriescomparedtopreviousyears’reports,wherebymanycompaniesproducedsustainabilityreportsmerelytomeetBursaMalaysiareportingrequirements,andnotbecausetheybelievedinthestrategicvalueofdisclosure.
Qualityisalsorisingasalargernumber
ofcompaniesadopttherecommendedstandardsandbestpracticesforsustainabilityreporting,suchasadheringtoGRIrequirements,andobtainingtheGRIApplicationLevelCheckandindependentassurance.
Despitethemanypositiveaspectsofthesubmittedreports,thejudgesnotedthefollowingareasforfutureimprovements:
PRECISE AND FULLER DISCLOSURE NEEDEDOverall,thejudgesrecommendedthatreportsshouldbemoretransparent,comprehensiveandcomplete.Organisationswhichintendtoimprovetheirqualityofsustainabilityreportingarerecommendedto:clearlystateoutrighttheirintentions;implementthem;andfinally,presenttheoutcomesinaclearandconcisemanner.Sinceakeyfunctionofsustainabilityreportingistoenabledecision-making,companiesareadvisedtoincludemorequantifiableandcomparablehistoricaldatatofacilitateanalysisaswellasinformationregardingfutureplansandfollow-upactions.
LEAVE THE COMFORT ZONESPreparerswereurgedtorefrainfromrepetitivereportingandrehashingthecontentsofpreviousreports.Judgesalsoadvisedcompaniestoemergefromtheircomfortzoneinordertoimprovereportingquality.
“Companiesneedtoprovethattheyaremakingmorethanjusttokeneffortsataddressingissueswhichareofconcerntotheirstakeholdersaswellastheir
customers.Theyneedtounequivocallyshowthattheyhavecoherentandobviousprogrammestotackletheseissues,aswellasshowinghowsuccessfultheseprogrammesareinexecution,”commentedjudges.
Furthermore,companiesshouldensureconsistentqualityofreportingacrosstheentireannualreport.Comparedtothestandalonesustainabilityreport,sustainabilityreportswithinanannualreportwereunevenandpatchyinquality.Forexample,onecompany’soverallannualreportwasveryimpressive,butthequalityoftheCSRsegmentpaledincomparisontothatoftheprimarycorporatereport.
PERFORM BEYOND INDUSTRY REQUIREMENTS, CONFRONT DIFFICULT ISSUESWhilereportsweregenerallywellprepared,companiesshouldpushtheenvelopeandstarttacklingissuesbeyondthenormalscopeoftheirbusinessoperationsandindustryrequirements.“Forinstance,utilitycompanieswouldalreadyplaceenvironmentalconservationveryhighontheiragenda–butitismoreofarequirement,andnotsomethingthatisoptionalforthem.Itisalreadyanimperativewhichisexpectedofthem.Theyhavetoprovetobedoingmorethanjustthat.Forexample,theymightdeliverwellonenvironmentalissues,butlackinotherareassuchassocialresponsibilitydisclosures,”commentedjudges.
JudgescitedcompaniessuchasGuinnessAnchorBerhad(GAB)andBritish
judges’comments
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AmericanTobacco(BAT)asfrontrunnersinconfrontingdifficultissuessuchasmarketandethicalrisks.“ItisclearthatcompanieslikeGABorBAThaveadisadvantageasthepublicperceivetheirindustrynegatively,sotospeak–tackletheseissuesveryseriously,andtheydoitquitewell.Theireffortscomeacrossasbeingmoregenuine,especiallycomparedtopreviousyears.”
BATwaslaudedforitstransparentdisclosureandpresentationofproductperformanceandhealthrisksaswellastheimpactonconsumersandmarkets.Notably,BATincludedgraphicpicturesofthehealthwarningsanddeterrentsprintedonitspackaging.
Meanwhile,GABdiscloseditsimpositionofanethicalcodeofbehaviouronitssuppliers,whichshowsthattheyarenotonlywillingtodiscussthedifficultissuesbutarealsowillingtowalkthetalk–animprovementfrompreviousyears.GABalsodemonstratedamorepoliticallycorrectapproachbymovingawayfromexploitativeadvertisementsofwomenintomoregeneralyetengagingads;thiscouldbeaneffortbythecompanytoengagefemalestakeholdersandconsumersandupholdgenderdiversity.Furthermore,itlaunchedthe“DrinkResponsibly”campaign–whichengagedstakeholdersbyhighlightingtherisksofdrinkingbutcouldpotentiallybedetrimentaltotheirfinancialperformance.
ENHANCE GENDER DIVERSITY DISCLOSUREGenderdiversityandinclusionarebecomingincreasinglyimportantinMalaysiaasthecountrystrivestobeefupthetalentpoolbyattractingandretainingmorequalifiedwomenintheworkforce.Keygenderdiversitymeasuresincludemandatingboardroomquotasforwomendirectorsandencouragingfamily-friendlyworkforcepolicies.In2011,theMalaysiancabinetapprovedapolicythatrequireswomentomakeupatleast30%ofexecutivesindecision-makingpositionsinthecorporatesectorinfiveyears’time.Furthermore,thePrimeMinisterDato’SeriNajibTunRazakencouragedlistedcorporationstodisclose,intheirannualreports,policiessuchasflexibleworkingarrangementstopromoteandsupportwomen.
GiventhatgenderdiversityissuesarestillgainingtractioninMalaysia,itishardlysurprisingthatrelateddisclosureremainslimited.Basedontheshortlistedreports,therewasnoclearwinnerforthegenderdiversitycategory.Themajorityofreportslackedclearevidenceonthegenderdiversitybestpractices,didnotcomplywithGRIGuidelinesonGenderandfailedtotranslatepoliciesongenderdiversityintoconcreteoutcomes.“Forexample,onecompanyhadacomprehensivereportaboutitseffortsatencouragingdevelopmentofwomen;however,womenwerepoorlyrepresentedontheboardofdirectorsandmanagementlevel,”commentedjudges.
Merelyprovidingcommentaryongenderdiversityeffortsisinsufficienttobuildcredibility.Thejudgesfeltthatacompany’sstanceongenderdiversityhadtobeadequatelybackedbysolidnumbersandproperpresentationinaccordancewithreportingguidelines.Forexample,thejudgesunanimouslyagreedthatSunwayGroupdeservedaSpecialMentionforitseffortstodevelopwomenintheworkforce,butnotedthatthedisclosurecouldhavebeenbetterpresentedwithstrictercompliancetoGRIrequirements.
Inordertoinstillacorporateculturethatsupportsdiversity,organisationsshouldestablishrobustandtransparentdiversitypolicies,implementmeasurableobjectivesandensurefulldisclosureoftheirlong-termtargetsandkeyperformanceindicators(KPIs)onGenderDiversity.Theseincludeputtingstrategiesandpoliciesinplacetoencouragehigherrepresentationofwomenatboardandmanagementlevel.Importantly,tonefromthetopandastrongcommitmentfromleadershiptogenderequalityandparitywillhelporganisationsachievesustainablediversityinthelongterm.
judges’comments
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supportingorganisation
PARTNER
Talent Corporation Malaysia
TalentCorporationMalaysia(TalentCorp)wasestablishedon1January2011underthePrimeMinister’sDepartmenttoformulateandfacilitateinitiativestoaddresstheavailabilityoftalentinlinewiththeneedsofthecountry’seconomictransformation.CollaboratingcloselywithrelevantGovernmentagenciesandemployersinpriorityeconomicsectors,TalentCorpdevelopsdemand-driveninitiativesfocusedonthreestrategicthrusts,specifically(1)OptimiseMalaysiantalent,(2)AttractandFacilitateGlobalTalentand(3)BuildNetworksofTopTalent.
WeseeourselvesasthebridgebetweenthepublicandprivatesectorsinMalaysia.Welistentotheprivatesectortobetterunderstandtheirtalentneedsfortomorrow.Wepartnerwiththepublicsectortointroduceandimplementfacilitativepoliciesandinitiativestonurture,attractandretaintoptalentforthecountry.WebelievethatMalaysiatrulyhastalentandthattalentsofallbackgroundswillbeabletofindmeaningfulprofessionalopportunitiesinthiscountry.Towardsthisend,wecollaboratewithemployersandengagewithtalentsathomeandabroadtopromotethedynamicanddiverseprofessionalopportunitiesavailableinMalaysia.
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ACCA(theAssociationofCharteredCertifiedAccountants)istheglobalbodyforprofessionalaccountants.Weaimtoofferbusiness-relevant,first-choicequalificationstopeopleofapplication,abilityandambitionaroundtheworldwhoseekarewardingcareerinaccountancy,financeandmanagement.
Foundedin1904,ACCAhasconsistentlyhelduniquecorevalues:opportunity,diversity,innovation,integrityandaccountability.Webelievethataccountantsbringvaluetoeconomiesinallstagesofdevelopment.Weaimtodevelopcapacityintheprofessionandencouragetheadoptionofglobalstandards.Ourvaluesarealignedtotheneedsofemployersinallsectorsandweensurethat,throughourqualifications,weprepareaccountantsforbusiness.Weseektoopenuptheprofessiontopeople
ofallbackgroundsandremoveartificialbarriers,innovatingourqualificationsandtheirdeliverytomeetthediverseneedsoftraineeprofessionalsandtheiremployers.
ACCAworkstostrengthenaglobalprofessionbasedontheapplicationofconsistentstandards,whichwebelievebestsupportsinternationalbusinessandthedesireoftalentedpeopletohavesuccessful,internationalcareers.Wechampiontheneedsofsmallandmediumsizedbusiness(SMEs)andemergingeconomies,andpromotethevalueofsustainablebusiness.
ToachievethisweworkwithglobalbodiessuchastheInternationalFederationofAccountants(IFAC)andwith77globalpartnerships.Aboveall,weseektobringlong-termvaluetoeconomiesinwhichwedevelopandsupportprofessionalaccountants.
aboutACCA
Wesupportour162,000membersand428,000studentsin173countries,helpingthemtodevelopsuccessfulcareersinaccountingandbusiness,withtheskillsneededbyemployers.Weworkthroughanetworkofover89officesandcentresand8,500ApprovedEmployersworldwide,whoprovidehighstandardsofemployeelearninganddevelopment.
ACCAworksinthepublicinterest,assuringthatitsmembersareappropriatelyregulatedfortheworktheycarryoutand,promotingprinciples-basedapproachestoregulation.Weactivelyseektoenhancethepublicvalueofaccountinginsocietythroughinternationalresearchandwetakeaprogressivestanceonglobalissuestoensureaccountancyasaprofessioncontinuestogrowinreputationandinfluence.
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ACCA Malaysia Sdn Bhd(473007P)27thFloorSunwayTower Kuching BranchNo86JalanAmpang Unit#8.0150450KualaLumpur 8thFloorGatewayBuildingtel:1800885051fax:+60327135052 No9JalanBukitMataemail:[email protected] 93100KuchingSarawakwww.accaglobal.com tel:1800885051fax:+6082426061
AN INVITATION TO PARTICIPATE
Ifyoudiscloseenvironmental,socialorfullsustainabilityinformationaboutyourorganisation,weinviteyoutoparticipateinACCAMalaysiaSustainabilityReportingAwards2014.
TheACCAMalaysiaSustainabilityReportingAwards2014timetableis:
March 2014 Announcementofthe2014Awards
30 June 2014 Entrydeadline
August 2014 Judges’meetings
October 2014 Awardspresentationceremony
IfyouhaveanyquestionsabouttheAwardsscheme,pleasecontact
Ms Dorothy Deotel:+(603)21823606fax:+(603)27135052email:[email protected]
ACCAMalaysiaSustainabilityReportingAwards(MaSRA)2014