Abstract
This article aims to determine if the adoption of Integrated Reporting by large private sector companies in South Africa has led to an improvement in the quality of sustainability-related information disclosed. This was done in two stages. The first stage comprised a literature review with the aim to develop an evaluation matrix that can be used to access the quality of the sustainability-related information being disclosed within Integrated Reports. During the second stage, empirical evidence was obtained by assessing the sustainability reporting disclosures made by the best performers according to the Johannesburg Stock Exchange (JSE) Sustainability Index. The Integrated Reporting process is still in the development phase with many companies only now developing methodologies to measure their various impacts. The study found that, although many companies are attempting or claiming to be creating Integrated Reports, the level of integration is still very low. Few companies have incorporated or understood the importance of environmental and social sustainability in achieving long-term success. It is hoped that this research will provide an evaluation matrix to assess the information disclosed within Integrated Reports as well as provide insights into the implementation challenges experienced by the early adopters in South Africa.
Highlights
BackgroundT he first decade of the 21st century saw a growing realisation that humanity is facing a “poly-crisis”
4 Are waste and pollution associated with operations accounted for and measured, and are there measurable targets set for reduction? 5 Are significant impacts of transporting products, goods and materials including members of the workforce disclosed? Supply Chain 1 Does the report contain a description of improvements in the supply chain and whether upstream performance has been integrated into the organisation’s sustainability strategy and improvement targets? 2 Are the company able or willing to account for the environmental impacts of their major suppliers? Product Life Cycle 1 Are the life cycle stages of goods and services assessed and has downstream performance been integrated into the organisation’s sustainability strategy and improvement targets? This includes packaging material that is reclaimed
Disclosure For Social Sustainability Environmental Justice 1 Are potential or actual negative direct or indirect environmental impacts, including health and safety concerns, on local communities considered? 2 In cases of non-compliance, fines or prosecutions are their proper disclosure relating to the causes, including a statement of responsibility and measurable commitments to reduce the risks of future non-compliance
Summary
BackgroundT he first decade of the 21st century saw a growing realisation that humanity is facing a “poly-crisis”. Ecosystem degradation, and the loss of biodiversity (Haberl, Fisher-Kowalski, Krausmann, et al 2011:5) are not merely side-effects of the global industrial system. They form an intrinsic part of how the entire system is “constituted, fuelled and financed” (Swilling & Annecke, 2012:48). The first marks the end of the current development cycle which began in the early 1950’s. These development cycles recur, on average, every 60 years. Viewed together with the current environmental crisis and resource constraints, it is clear that business as usual is no longer an option (Gore, 2010:716)
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