ACCA MALAYSIA SUSTAINABILITY REPORTING AWARDS ( · PDF fileas the ACCA Malaysia Sustainability...

report of the judgesACCA MALAYSIA SUSTAINABILITY REPORTING AWARDS (MaSRA) 2009

AcknowledgementACCA would like to thank and acknowledge the contribution and support of the distinguished panel of judges, AccountAbility, Bursa Malaysia Berhad, the Business Council for Sustainable Development in Malaysia (BCSDM), CorporateRegister.com, the Department of Environment (DOE), The Edge Business Weekly, The Edge Financial Daily and last but not least all participating companies in the Awards. We believe that the participating companies deserve recognition for leading the way to identify and communicate their environmental and social performance. Companies such as these are contributing towards the advancement of sustainable development and performance.

@ ACCAAugust 2009

Contents

Introduction 4

Judging Process 7

ACCA MaSRA 2009 Winners 15

Participating Companies 8

Short-listed Companies 11

Judges’ Feedback 23

Supporting Organisations 26

About ACCA 32

Introduction

Globally, sustainability reporting is now the norm rather than the exception.

Nearly eighty percent of the largest 250 companies worldwide (the G250) issued reports, and an additional four percent integrated corporate responsibility (CR) information into their annual reports. The rate of reporting among the largest 100 companies (N100) in 22 countries is forty five percent on average, with the highest numbers in Japan (eighty eight percent) and the UK (eighty four percent). The profile of non-financial reporting has transformed dramatically from purely environmental reporting up until 1999 to embrace sustainability reporting which discloses social, environmental and economic impacts. The most recent KPMG International Survey of Corporate Responsibility clearly substantiated this.

ACCA Malaysia, in line with these paradigm shifts, has therefore rebranded its reporting awards early this year as the ACCA Malaysia Sustainability Reporting Awards or ACCA MaSRA. Previously, these awards were known as the ACCA Malaysia Environmental and Social Reporting Awards (ACCA MESRA). When ACCA first introduced the Awards in 2002, ACCA is fully aware that the Awards would ultimately progress towards sustainability reporting.

These shifts in focus are intended to encourage Malaysian reporting on non financial information to converge with global trends and best practices on sustainability reporting. This in turn would help strengthen the country’s reputation as an internationally competitive and credible investment and business destination, especially as global investors are increasingly using sustainability commitments as a filter for decision-making.

By widening the awards to embrace sustainability, ACCA also hopes to encourage organisations to analyse and link

their impacts on the triple bottom line of economy, environment and society back to corporate strategies and business models.

POSITIVE TRENDS

Despite the unfavourable economic environment, global companies remain committed to sustainability reporting which enhances corporate reputation and credibility. The global recession is an acid test of how serious companies are about continuing to perform their social and environmental responsibilities. Here in Malaysia, since the launch of the CSR framework and mandatory mention of CSR Performance in listing requirements of Bursa Malaysia in 2007, there has been an increase in the awareness among companies of its importance and relevance and there has also been an increase in the number of companies disclosing information. The quality of the reports submitted for ACCA MaSRA 2009, has also certainly improved especially among Malaysian companies. More companies are getting serious about sustainability reporting with some following global guidelines as such as the GRI Guidelines and using AA 1000 Assurance Standards (issued by AccountAbility), to enhance credibility, ensure completeness and effective communications. (the 3 ‘Cs’ of ACCA MaSRA judging criteria).

Globally, industrial sectors with a relatively high environmental impact continued to lead in reporting. More than 80 per cent of G250 companies reporting operate in the electronics, utilities, automotive and gas sectors. Remarkably, the financial sector demonstrated a more than a two-fold increase in corporate responsibility reporting since 2002.

Similarly in Malaysia, companies with a significant environmental impact – such as in the sectors of waste

management, plantations, water and manufacturing - are among the leading CR reporters shortlisted in ACCA MaSRA 2009. At the same time, companies involved in services – as in broadcasting and telecommunications - too are making commendable efforts to report on their environmental and social impacts.

ENHANCING DISCLOSURE

Malaysia has always been keen to adopt and adapt best practices that can benefit business. Sustainability reporting is no different, and the following are some best practices that can be internalised by Malaysian companies to improve the quality of disclosure.

Overall, global companies are moving towards a more strategic approach to corporate responsibility management and reporting. Significantly, companies cited corporate responsibility as the key indicator of non-financial performance, as well as a driver of financial performance. In addition, companies said that top drivers for reporting were ethical considerations and innovation – two key success factors for companies navigating through the challenges in today’s prevailing economic climate. Outstanding reports in the ACCA MaSRA 2009 clearly demonstrated their ethical concerns and their efforts to innovate in the economic, social and environmental spheres.

Significantly, global environmental concerns are driving reporting. According to the KPMG Report, the most widely mentioned issue pertains to disclosure of companies’ carbon footprints, which showed more than a two-fold increase. The emphasis on carbon footprints has been partly driven by the introduction of the European Union Emissions Trading Scheme and the ratification of the Kyoto Protocol, as well as the acknowledgement of climate change and the reduction of greenhouse gas

emissions as key business challenges. Disclosure of carbon footprints is area of improvement for ACCA MaSRA entrants.

Global companies are also placing a priority on credibility of reports produced through assurance. Sustainability report assurance has grown over the past decade globally. Similarly, independent or external assurance is a hallmark of Malaysia’s leading report in the ACCA MaSRA 2009 reporting cycle.

When we talk about audit and assurance of sustainability reporting, it is about establishing the credibility of the information presented. Recent publication by CorporateRegister.com titled “Assure View” states twenty five percent of all sustainability reports submitted to its database has an external assurance. Eight hundred reports in 2007 comparative to just one hundred in 1998 have external assurance. KPMG Report indicates forty percent of reports produced by G250 have a formal assurance of their sustainability information. While external verification or assurance is the best form of credibility, information such as proper management systems and process, evidence of stakeholder engagement and inclusion in the reporting process, performance information and quantitative data are other measures of credibility.

The future of sustainability reports look set to move further away from just narrative information alone and have greater focus on establishing credibility. Organisations that start to align its sustainability policies to their evolving business model and report on tangible and measurable impacts they have on the environment and society will be able differentiate themselves from other reporters. This report provides such examples of companies that have made that difference to the ACCA MaSRA panel of judges. The report also includes the overall feedback of the judges on the reports submitted and key areas for improvement.

Introduction (continued)

THE ACCA MaSRA 2009 JUDGES

Chairman, Shell MalaysiaY Bhg Dato’ Saw Choo Boon#

Ms Selvarany Rasiah

Chief Regulatory Officer, Bursa Malaysia Berhad

Mr Goh Ching YinExecutive Director, Strategy and Development, Securities Commission

Y Bhg Dato’ Hajah Rosnani IbarahimDirector General, Department of Environment, Malaysia

Y Bhg Dato’ Kok Wee KiatHonorary President, the Business Council for Sustainable Development in Malaysia

Ms Dorothy TeohDeputy Editor in Chief, The Edge Communications

Associate Professor Salleh HassanAssociate Professor of Accounting and Deputy Director of Business School, Notthingham University

Dr Ho Jo Ann*Lecturer, Department of Management and Marketing, Universiti Putra Malaysia

Associate Professor Faizah Darus*Director of Academic Development UiTM and Head of Asia-Pacific Centre for Sustainability (APCeS), UiTM-ACCA

Ms Rikke Netterstróm*Director Malaysia, CSR Asia

* members of short-listing panel# chairman of the judging panel

Judging Process

Judging Process (continued)

ASTRO ALL ASIA NETWORKS plcInspiring Sustainability

Boustead Holdings BerhadTowards Sustainable Agriculture

British American Tobacco (Malaysia) Berhad2006-2008 Social Report Overview

Chemical Company of Malaysia BerhadCorporate Responsibility Report 2008

CIMB GroupAnnual Report for 2008

DiGi Telecommunications Sdn BhdAnnual Report 2008

Faber Group BerhadAnnual Report 2008

Gamuda Berhad2008 Annual Report

Guinness Anchor BerhadCorporate Responsibility Report 2008

HSBC Bank Malaysia BerhadCorporate Sustainability Report 2007

IJM Corporation BerhadAnnual Report 2008

IJM Plantations BerhadAnnual Report 2008

Indah Water Konsortium Sdn BhdCorporate Sustainability Report 2007

Intel Technology Sdn BhdIntel Corporate Responsibility Report 2007

Intel Technology Sdn BhdIntel Malaysia Community Calendar 2009

Kulim (Malaysia) BerhadAnnual Report 2007

Kulim (Malaysia) Berhad (Plantation Division)Sustainability Report 2007/2008

Lafarge Malayan Cement BerhadLMCB Annual Report 2007

Lafarge Malayan Cement BerhadSustainable Development Report

Malaysian Airline System BerhadReport on Corporate Social Responsibility

Malaysian Resources Corporation BerhadMRCB Sustainability Report 2008

Malaysian Resources Corporation BerhadMRCB Financial Report 2008

Malaysian Resources Corporation Berhad2008 Annual Report MRCB

Media Prima BerhadCorporate Responsibility

ACCA MaSRA 2009 – PARTICIPATING COMPANIES


MERCY Malaysia2007 Annual Report

MERCY MalaysiaCorporate Brochure

Mesiniaga BerhadAnnual Report 2007 - Creating Waves of Success

Mesiniaga BerhadCorporate Responsibility Report 2008

Motorola Technology Sdn BhdMotorola Malaysia Environmental Report 2008

Nestlé (Malaysia) BerhadCorporate Report 2008

Nestlé (Malaysia) BerhadCreating Shared Value Report 2008

Opus Group BerhadSustainability Report 2008

Petra Perdana BerhadSustainability Report 2008

Pharmaniaga BerhadAnnual Report 2008

Pharmaniaga BerhadAyuh Kayuh Sustainability Report 2008

Puncak Niaga Holdings BerhadAnnual Report 2007

Puncak Niaga Holdings BerhadCommunity Link to River Rescue Brigade and Outreach Programme at www.puncakniaga.com.my

Puncak Niaga Holdings BerhadCommunity Link and PUSPEL Link at www.syabas.com.my

Ranhill Utilities BerhadSustainability Report 2008

Sony EMCS (Malaysia) Sdn BhdSustainability Report 2008

Star Publications (Malaysia) BerhadAnnual Report 2008

Sunway Holdings BerhadAnnual Report 2008

Sunway City BerhadAnnual Report 2008

Telekom Malaysia BerhadAnnual Report 2008

Tenaga Nasional BerhadAnnual Report 2008

Tex Cycle Sdn BhdSustainability Report 2008

Tioxide (Malaysia) Sdn BhdResponsible Care Report 2007

TNT Express Worldwide Sdn BhdGuidelines for the Social Responsibility Questionnaire FY 2008

ACCA MaSRA 2009 – PARTICIPATING COMPANIES (continued)


Toshiba Electronics Malaysia Sdn BhdCSR Report 2007

Tradewinds (M) BerhadAnnual Report 2007

Tradewinds Plantation BerhadEnvironmental, Health and Safety Report

Tradewinds Plantation BerhadCorporate Social Responsibility Report

UEM Environment Sdn BhdTowards Sustainability - Sustainability Report 2007

YTL Corporation BerhadSustainability Report 2008

Yung Kong Galvanising Industries BerhadAnnual Report 2008

UMW Toyota Motor Sdn BhdRespect For The People and The Environment

ACCA MaSRA 2009 – PARTICIPATING COMPANIES (continued)


ASTRO ALL ASIA NETWORKS plcInspiring Sustainability

British American Tobacco (Malaysia) Berhad2006-2008 Social Report Overview

Guinness Anchor BerhadCorporate Responsibility Report 2008

Indah Water Konsortium Sdn BhdCorporate Sustainability Report 2007


Malaysian Resources Corporation BerhadMRCB Sustainability Report 2008


Opus Group BerhadSustainability Report 2008

ACCA MaSRA 2009 – SHORT-LISTED REPORTS


Petra Perdana BerhadSustainability Report 2008

Ranhill Utilities BerhadSustainability Report 2008

Sony EMCS (Malaysia) Sdn BhdSustainability Report 2008

Tex Cycle Sdn BhdSustainability Report 2008

Tioxide (Malaysia) Sdn BhdResponsible Care Report 2007

Toshiba Electronics Malaysia Sdn BhdCSR Report 2007

UEM Environment Sdn BhdTowards Sustainability - Sustainability Report 2007

YTL Corporation BerhadSustainability Report 2008

ACCA MaSRA 2009 – SHORT-LISTED REPORTS (continued)


IJM Plantations BerhadAnnual Report 2008

Puncak Niaga Holdings BerhadAnnual Report 2007

Star Publications (Malaysia) BerhadAnnual Report 2008

Telekom Malaysia BerhadAnnual Report 2008

ACCA MaSRA 2009 – SHORT-LISTED REPORTS (continued)

ACCA MaSRA 2009Winners

WINNER – BEST SUSTAINABILITY REPORTUEM Environment Sdn Bhd

WINNER – ENVIRONMENTAL PERFORMANCE REPORTMalaysian Resources Corporation Berhad

WINNER – SOCIAL PERFORMANCE REPORT Nestlé (Malaysia) Berhad

WINNER – INTEGRATED REPORTING IN AN ANNUAL REPORT Puncak Niaga Holdings Berhad

WINNER – BEST FIRST TIME REPORTER Kulim (Malaysia) Berhad (Plantation Division)

COMMENDATION – REPORTING ON STRATEGY AND GOVERNANCE Kulim (Malaysia) Berhad (Plantation Division)

COMMENDATION – REPORTING ON STAKEHOLDER ENGAGEMENT AND INCLUSIONASTRO ALL ASIA NETWORKS plc

SPECIAL MENTION – ASSURANCE APPROACH British American Tobacco (Malaysia) Berhad

UEM Environment Sdn Bhd

Malaysian Resources Corporation Berhad

ACCA MaSRA 2009 Winners (continued)

UEM Environment Sdn BhdSustainability Report 2007

• Complies with the Global Reporting Initiative (GRI) G3 Guidelines

• The only shortlisted entrant to report on its carbon footprint audit for the first time

• Provides independent assurance of its report by an external third party

• Reports its sustainability cost commitments

• Transparently discusses its challenges and areas for improvement

• Discloses detailed quantitative and qualitative data on environmental performance

• Discloses the areas in which data could be further refined

• Provides historical context of data and reporting enabling year-on-year assessment of progress

• Message from managing director indicates support from the top

• Clearly identifies its target audience consisting of all its stakeholders and addresses their diverse interests

• Shares information in a standardised format that is easy to understand

• Discloses information on issues that are most relevant to internal and external stakeholders

• Reports both positive and negative customer feedback

• Extensive use of the colour green in design and visuals symbolizes the company’s commitment to protecting the environment, appropriate to its core business of hazardous waste management

• Straightforward layout allows easy navigation for the reader

• Website reporting complements print report and facilitates stakeholder interaction

WINNER – BEST SUSTAINABILITY REPORT


Malaysian Resources Corporation Berhad Sustainability Report 2008

• Uses GRI guidelines and Bursa Malaysia’s CSR Framework as basis

• Refers to best practices in the “Silver Book” published

• Demonstrates leader support through statement from group managing director

• Augments reporting with detailed performance indicators on business areas over which it has material control and where the impact of its activities is considered significant

• Classifies gaps or weaknesses in data as “Partially Reported,” particularly in the Environmental Section, where its monitoring and information systems do not collate data in line with the GRI-G3 guidelines

• Declares intent to improve its data collection systems over the next two years in order to provide consistent environmental data for all operations in future reports.

WINNER – ENVIRONMENTAL PERFORMANCE REPORT

• Information on environmental certifications initiatives for its property development projects and energy efficiency and conservation efforts in detail at Stesen Sentral Kuala

Lumpur enhances credibility

• Inclusion of feedback from stakeholders such as business partners, employees and community leaders

• Provides external assurance of its report

• Concise bilingual format aids readability and understanding



• Clearly articulates its Creating Shared Value Model, which links Nestle’s CSR focuses of nutrition, water and rural development to its business strategy and activities

• Captures the coherence and logical connection between strategy and actions

• Categorises its CR efforts according to UN Millennium Development Goals

• Discloses risks to its business, such as the challenge of water scarcity which impacts the future of food security

• Describes its water management, energy conservation, waste management and packaging processes in detail supported by historical and current data, marred only by the non-disclosure of performance targets

• Relates its engagement efforts with diverse stakeholder groups, including employees, consumers, small-medium enterprises and government

WINNER – SOCIAL PERFORMANCE REPORT

• Matrices explain targets and achievements in relation to the Bursa Malaysia CSR framework reporting requirements of marketplace, workplace, community and environment

• Detailed CR case studies on nutrition, water and rural development demonstrate Nestle’s progress in achieving its Sustainability goals

• Explains its initiatives in sustainable farming, equal education and employee volunteerism

• Sets out its achievements and broad qualitative targets in tabular form

• Feedback from key stakeholders such as consumers and NGOs provide evidence of stakeholder engagement

• Acknowledges that its report is incomplete without third party verification, which it hopes to address formally in the next reporting cycle


Puncak Niaga Holdings Berhad 2007 Annual Report

• Clearly defines scope of the report

• Demonstrates leadership’s commitment to sustainability and responsible corporate citizenship

• Balanced reporting includes disclosure of negative environmental impacts, such as raw water quality violations and plant shutdowns

• Discloses probable causes, dates, sites affected and other relevant information for major plant shutdowns

• Explains initiatives to improve river water quality, such as its river water surveillance system which supplements conventional monitoring of river water quality

• Describes its crisis management plan and the crises handled in 2007

• Discloses performance indicators for energy consumption and carbon emissions

• Provides extensive descriptions of its various corporate responsibility initiatives which relate back to its business, such as providing clean water and technical support for flood victims, and its River Rescue Brigade programme for school children.

WINNER – INTEGRATED REPORTING IN AN ANNUAL REPORT



• Uses the GRI guidelines

• Links its sustainability framework with its management model incorporating nine steps towards RSPO (Roundtable on Sustainable Palm Oil) implementation

• Contains innovative disclosures including the Kulim Sustainability Handbook, its Foreign Workers Handbook, its anti-corruption initiatives, a FAQ and a glossary that aids reader understanding

• Refers to the Kulim Sustainability Handbook, which sets out the Group-wide policies on global environment, social and ethical issues

• Social impact assessments are framed around the SA8000 standard, whereas environmental performance is guided by the ISO14000 framework and community dealings by the human rights concept of Free, Prior and Informed Consent

• Clearly defines scope of report and acknowledges reporting limitations

WINNER – BEST FIRST TIME REPORTER AND COMMENDATION – REPORTING ON STRATEGY AND GOVERNANCE

• Demonstrates leadership’s commitment to sustainability and responsible corporate citizenship

• Enhances credibility by explaining its initiatives in zero-burning, carbon credit and clean development mechanism (CDM) projects, soil conservation, fertilizer replacement, pest management and peat land management

• Discloses key performance indicators and targets for key areas such as carbon emissions and water usage

• Details its biodiversity conservation actions and medium to long-term strategies for protecting wildlife in southern Peninsular Malaysia

• Addresses labour rights for both local and foreign workers

• Explains its commitment towards gender, religious and ethnic diversity

• Explains its HIV and AID policy for employees

• Report printed on recycled paper


ASTRO ALL ASIA NETWORKS plc Inspiring Sustainability

• Addresses a diverse set of stakeholders using different communications channels which are outlined in its stakeholder engagement matrix

• Provides quantitative and qualitative data on key performance indicators like customer satisfaction and customer concerns, marred by the absence of future performance targets.

• Acknowledges its position of influence as a leading media group, and thus its commitment to produce socially responsible content

• Identifies lack of compliance with Home Ministry guidelines as a risk to business continuity and explains actions taken to ensure compliance, such as responsible reporting and broadcasting

• Stresses its commitment towards ethical business practices to safeguard corporate governance and investor relations

• Incorporates stakeholder feedback from government and NGOs to strengthen credibility

COMMENDATION – REPORTING ON STAKEHOLDER ENGAGEMENT AND INCLUSION


1. British American Tobacco (Malaysia) Berhad 2006 -2008 Social Report

2. UEM Environment Sdn Bhd Sustainability Report 2007

3. Malaysian Resources Corporation Berhad Sustainability Report 2008

This award is given to companies with good external assurance statement that demonstrate indicators such as independence and impartiality, clarity and scope of assurance, methodology and depth of investigations, disclosure on short coming and recommendations. The reports also include third party verification to enhance credibility of the information.

SPECIAL MENTION – ASSURANCE APPROACH

Judges’ Feedback

In previous reporting cycles, there were clear-cut winners which stood head-and-shoulders above the rest. However, this time around, the quality of reporting was consistently high among the 20 short-listed reports, resulting in a very close competition and a challenging decision-making process for judges.

The winning entries satisfied the ACCA judging criteria of completeness, credibility and communication. “Companies who scored well were those whose reporting enabled readers to picture their sustainability practises through transparent and descriptive information,” commented Dato’ Saw Choo Boon, Chairman of the ACCA MaSRA 2009 Judging Panel.

Winning companies shared several success factors. Importantly, high marks were scored by companies that captured the link between their CR actions and their business strategies. Leading reporters were guided by international and local best practices for sustainability reporting, such as the Global Reporting Initiative (GRI) G-3 Guidelines. They clearly described their CR strategy, the policies/procedures in place, how these were being implemented and monitored, and how their impacts were measured. They paid attention to describing their stakeholder engagement programme, and included all relevant stakeholders. Tone from the top was critical, and companies ranked highly if they demonstrated that their CR practices enjoyed support from the highest levels of management. External assurance by independent third parties was a deciding factor too.

Although the quality of reporting was adjudged as being generally high, there is plenty of room for improvement. Judges recommended that companies enhance the standard of future disclosures by focusing on the following core areas.

Compliance with Best PracticesThe world’s leading reporters on sustainability comply with global standards and best practices. These include the GRI guidelines, the current international benchmark for presenting environmental, social and economic information.

Other than GRI Guidelines, companies especially listed companies are advised to refer to the Bursa Malaysia CSR framework as basis to structure the report to ensure easy read by stakeholders. Other best practices include using UN Global Compact principles and AA 1000 Series for assurance purposes.

External AssuranceVery few companies engaged third-party verification services and neglected internal auditing assurance, although judges have stressed this point repeatedly in previous reporting cycles.

In the 2009 reporting cycle, only three shortlisted entries incorporated external verification statement. Given the weight placed on independent assurance, judges singled out these three for special mention in the assurance category: UEM Environment Sdn Bhd, Malaysian Resources Corporation Berhad and British American Tobacco (Malaysia) Berhad. It is hoped that this will drive home the message that external verification is essential to enhancing the credibility of sustainability reports.

On that note, companies should be aware that disclosing awards won for CR initiatives does not count as external assurance.

Integrating Sustainability with StrategyThe context of sustainability is vital. The best reports provide information on how sustainability relates to business strategy and values. “Stressing the importance of sustainability to the company but neglecting to show how it relates to core values and business activities detracts from credibility,” noted the judges unanimously. Despite annual reminders, judges also noted the failure of companies to integrate sustainability measures with their core business values and activities, whereby “sustainability initiatives operates in a vacuum”.

Identifying and Disclosing Relevant RisksIn the current hostile business environment, risk identification and management are priorities for companies that value long-term sustainability. These are the invaluable lessons taught by companies battered by the financial and real economic crisis. However, judges noted that the majority of companies failed to identify and disclose their risks and subsequently, offered scant information on their enterprise governance and risk management initiatives. Proper identification and disclosure of risks are crucial to the criteria of completeness and credibility.

Holistic stakeholder inclusionFor the sake of inclusion and credibility, companies need to identify all relevant stakeholders. These include, and may not be limited to government leaders, regulators, employees, business partners, academics, non- governmental organisations, environmental groups, community leaders, individuals with interests in corporate responsibility and the communities in which a company operates.

Selective reporting of stakeholder engagement hurts companies. Once again, judges criticised certain companies for playing the “reporting game”, whereby

sustainability reports were produced solely for entry in the ACCA MaSRA.

While stakeholder engagement and feedback are important, it is equally vital to disclose how companies have responded to such feedback. Showing how input from different stakeholders has improved performance demonstrates a sincere commitment to community interests.

Tone from the TopReports that genuinely reflect a company’s performance and impacts come from a reporting team headed by a senior executive and include representatives from both the corporate policy and operational divisions. Ideally, reports should include a message from the managing director or chief executive officer linking sustainability policy to business strategy and core values, to strengthen credibility.

A report may be suspected of being a pure public relations vehicle if it is driven by the solely by communications department and there is little buy-in from the top management. Typically, such reports carry broad policy statements and scant information, normally just qualitative information. Such reports read as an attempted "greenwash" even if the company has genuine information to disclose about its sustainability accomplishments.

Improving Reporting QualityThe quality of information and data disclosed still leaves much to be desired.

Companies need to be balanced in their reporting. Disclosing both negative and positive impacts enhances credibility. Although judges commended some companies for their reporting on stakeholder engagements, but credibility is weakened by inclusion of only positive stakeholder feedback.

Judges’ Feedback (continued)

Judges criticized repeat entrants for their “box-checking” syndrome, whereby companies provide irrelevant and repetitive information in order to fulfill the criterion of completeness.

The majority of companies fail to reveal objectives and targets, a key reporting omission. Disclosing such information matched with performance achievements, both favourable and unfavourable demonstrates commitment to monitoring and improving performance. Quantitative data also adds credibility.

Reporting company-wide targets related to the sustainability report help employees and stakeholders see the practical implications of broad policy. Targets can be based on meeting minimum certification requirements such as those embedded in ISO 14000 or international agreements such as Kyoto Protocol. Alternatively, companies can also set and report on goals for year-on-year improvement, such as aiming for reductions in carbon emissions or making products more energy-efficient.

Sustaining MomentumA culture of complacency may have arisen among old timers in reporting. Judges noted that repeat entrants, did not make any discernible improvements to their reporting process. Has the learning curve hit a plateau? Reporting is a form of assessment and improvement for corporate responsibility practices and it cannot remain stagnant. “There must be continuous improvement if sustainability reporting in Malaysia is to catch up with global standards,” commented judges.

Judges’ Feedback (continued)

Supporting Organisations

AccountAbility

AccountAbility works to promote accountability innovations for sustainable development.

We are a unique global network of leading business, public and civil institutions working to build and demonstrate the possibilities for tomorrow’s global markets and governance through thought-leadership and advisory services. By working together we aim to scale up impacts through:

• Enabling open, fair and effective approaches to stakeholder engagement;

• Developing and rewarding strategies for responsible competitiveness in companies, sectors, countries and regions;

• Creating and developing effective collaborative governance strategies for partnerships and multilateral organisations that are delivering innovation and value, and

• Setting and influencing sustainability standards.

Our vision is of a world of civil power where people have a say in the decisions that impact on them and where decision makers act, and are transparent about their actions, on the issues that matter. At the core of our work is the AA1000 Series of Standards based on the principles of:

• Inclusivity - people should have a say in the decisions that impact on them

• Materiality - decision makers should identify and be clear about the issues that matter

• Responsiveness - organisations should be transparent about their actions

ENDORSERS

Bursa Malaysia Berhad

Bursa Malaysia Berhad is an exchange holding company that regulates and operates the trading activities on Bursa Malaysia, a stock market with just under 1,000 companies across 50 economic activities. This fully integrated exchange offers equities, derivatives, offshore, bonds as well as Islamic products and remains one of the largest bourses in Asia, offering a diverse range of investment choices globally. Companies are either listed on the Main Market for large-cap established companies, while the ACE Market is for emerging companies of all sizes and economic sectors.

For more information on Bursa Malaysia, visit the website www.bursamalaysia.com

Supporting Organisations (continued)

ENDORSERS

Business Council for Sustainable Development in Malaysia (BCSDM)

The Business Council for Sustainable Development in Malaysia (BCSDM) was formed because the business community was concerned for the Environment.

BCSDM’s vision is to be the leading business advocate of sustainable development in Malaysia.

BCSDM’s mission is to catalyse the sustenance of environmental conservation and socio-economic growth in Malaysia, and be the main link of Government, the Business Community and Society in sustainable development.

With its vision, mission and action plans set out to-date, BCSDM has organised workshops, seminars, “green projects”, luncheon talks, study visits, and fundraising projects, and is the co-organiser of the Prime Minister’s Hibiscus Award for environmental accomplishment. BCSDM also participates and represents the business voice in four policy-making and advisory government committees, namely the Ministry of Housing & Local Government, Ministry of Agriculture, Economic Planning Unit in the Prime Minister’s Department, Construction Industry Development Board Malaysia and Industrial Standards Committee (SIRIM).

The Ministry of Natural Resources and the Environment (NRE) recognises the role of BCSDM having included it in the national framework for sound environmental management.


ENDORSERS

Department of Environment (DOE)

The Department of Environment (DOE), established in 1975, is mandated under the Environmental Quality Act (EQA), 1974 to prevent, control and abate pollution. It is also empowered to enforce Section IV of the Exclusive Economic Zone Act, 1984.

Mission

DOE’s mission is to promote, ensure and sustain sound environmental management in the process of nation building.

Strategies in environmental management

• Pollution Control and Prevention

• Sustainable Development through Conservation of Resources

• Integration of Environmental Factors in Development Planning

• Environmental Education and Awareness

• Public Participation

• Inter-Agency and Federal-State Cooperation

• Bilaterally, Regionally and International Cooperation


ENDORSERS

CorporateRegister.com

CorporateRegister.com is the global corporate responsibility (CR) resources website. It hosts the world’s most comprehensive directory of CR and sustainability reports, profiling nearly 21,000 reports worldwide from over 5,000 companies. With an archive stretching back to 1990 it is indispensable for anyone working in the field of CR and sustainability reporting.

Working with some of the leading organisations in corporate responsibility, CorporateRegister.com hosts several official reporting registers. Further site features include a fully searchable directory of over 5,000 organisations (‘reporting partners’) actively involved in CR reporting.

CorporateRegister.com developed the world’s first annual global online CR reporting awards, the CRRA – see www.reporting-awards.com

[email protected]+44 20 7014 3366


SUPPORTER

The Edge Business Weekly The Edge Business Weekly is an award-winning and bestselling business and investment weekly newspaper in Malaysia. It provides readers with authoritative, analytical content on the corporate, investment, real estate, technology, management, media and lifestyle sectors. Since its launch in 1994, it has become the weekly staple for corporate executives to keep abreast of business and investment developments in the country. It is distributed nationwide via newsstands and by paid subscription. The Edge Business Weekly is published by The Edge Communications Sdn Bhd. The Edge Financial Daily Launched on May 22, 2007, The Edge Financial Daily is the latest title from the publishers of The Edge. It acts as a standalone daily business paper which complements its weekly sister publication. Published Mondays to Fridays, The Edge Financial Daily provides business news reporting and articles with local insights and global perspectives. It is distributed mainly in the Klang Valley as well as other key market centres. It is available at newsstands and by paid subscription.


MEDIA PARTNERS

About ACCA

ACCA is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. We have 362,000 students and 131,500 members in 170 countries worldwide. Our mission is to be the leading global professional accountancy body by reputation, influence and size, offering the first choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.

We use our expertise and experience to assist governments, donor agencies and professional bodies to develop the profession. ACCA aims to achieve and promote the highest professional, ethical and governance standards and advance the public interest. ACCA’s reputation is grounded in over 100 years of providing accounting and financial qualifications. Ourlong traditions are complemented by modern thinking, backed by a predominantly young, dynamic membership.

ACCA has been actively involved in the unfolding debate of CSR and sustainability reporting for more than 15 years. ACCA promotes transparency and aims to help businesses and organisations realise the growing importance of sustainability. ACCA promotes CSR and sustainability globally and in Malaysia through recognition of best practices, capacity building, education/information and research.

Recognition of Best PracticesACCA Reporting AwardsACCA has been actively promoting sustainability reporting awards throughout Europe, Africa, North America and the Asia-Pacific region. ACCA Awards Schemes are now established in Sri Lanka, Pakistan (in partnership with WWF), Malaysia, Singapore, Hong Kong, Australia and New Zealand, South Africa, and North America (in partnership with CERES).

Launching the awards has helped raised the profile of corporate transparency and responsibility issues within those countries. The sharing of best practices provide opportunity to benchmark social and environmental performance. ACCA Awards serve to encourage non-reporters to publish information on their social and environmental impacts, and ultimately, help underline the business case for sustainable practices and development.

Capacity BuildingACCA has been requested to share and contribute its expertise on Corporate Responsibility and sustainability reporting in workshops, international and local conferences and seminars.

Education/InformationThe growing awareness towards the concepts and applications of Corporate Responsibility has prompted strong interest from the media. Working with the media, ACCA educates the public and industry through articles in The Edge, The Star and Accountants Today.

Accounting & Sustainability e-NewsletterAccounting & Sustainability is published every three months and reports on recent news, publications and forthcoming events about issues such as:

• sustainability and social reporting

• developments in assurance

• management accounting and environmental finance

• environmental taxation and other legislation

• developments in standardisation, e.g. AA 1000 and ISO 14000

• accounting for externalities

• socially responsible investment

For other local and global publications on corporate social responsibility and sustainability issues, please visit:www.accaglobal.com/sustainability

Supporting National AgendaACCA Malaysia is one of the founding members of the Institute of Corporate Responsibility Malaysia (ICR Malaysia), a network of corporations devoted to the promotion of awareness in corporate responsibility and sustainability practices in Malaysia.

ACCA Social and Environmental ResearchACCA conducts research to explore CSR and sustainability issues. Issues researched include sustainability accounting in local government, social and environmental reporting, ethical investment, full cost accounting, social capital, and ecological footprint analysis. Research projects undertaken or funded byACCA are listed in the Research Publications Catalogue at: www.accaglobal.com/research

About ACCA (continued)

ACCA Malaysia Sustainability Reporting Awards(MaSRA) 2010An invitation to participate:

If you disclose environmental, social or full sustainability information about your organisation, we invite you to participatein ACCA Malaysia Sustainability Reporting Awards 2010.

The ACCA Malaysia Sustainability Reporting Awards 2010 timetable is:

March 2010 Announcement of the 2010 Awards

June 2010 Entry deadline

July 2010 Judges’ meetings

September 2010 Awards ceremony

If you have any questions about the Awards scheme, please contact:

Ms Zaiti Waddell-Mohd Alitel : +(603) 2713 5051 ext 18fax : +(603) 2713 5052e-mail : [email protected]

ACCA Malaysia Sdn Bhd (473007 P)27th Floor Wisma DenmarkNo 86 Jalan Ampang 50450 Kuala Lumpurtel: +(603) 2713 5051 fax: +(603) 2713 5052email: [email protected]

Kuching BranchUnit #8.01 8th Floor Gateway BuildingNo 9 Jalan Bukit Mata 93100 Kuching Sarawaktel: +(6082) 425051 fax: +(6082) 426061

ACCA MALAYSIA SUSTAINABILITY REPORTING AWARDS ( · PDF fileas the ACCA Malaysia Sustainability...

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