he ACCA Sustainability Reporting Awards 2023 celebrated companies dedicated to integrating environmental, social, and governance (ESG) considerations into their operations, highlighting their remarkable commitment to sustainability reporting. UNICEF Sri Lanka’s representative emphasized the importance of listening to children’s voices for shaping our planet’s future during the event. With diverse organizations across sectors competing for recognition, winners like Hayleys PLC and Ceylinco Life Insurance Limited showcased exemplary efforts, reinforcing the crucial role of sustainability in driving corporate responsibility and accountability.
The pursuit of sustainability has become an increasingly pivotal aspect of corporate responsibility, with organizations worldwide recognizing the imperative to integrate environmental, social, and governance (ESG) considerations into their operations. In this context, the ACCA Sustainability Reporting Awards 2023 serves as a symbol of acknowledgement for companies showcasing remarkable dedication and excellence in sustainability reporting.
The Chief Guest for the occasion was Christian Skoog, the representative of UNICEF Sri Lanka. In his address, he underscored the significance of listening to the voices and ideas of children for shaping the future of our planet.
The 2023 ACCA Sustainability Reporting Awards showcased a diverse range of organizations across multiple sectors competing for recognition in various categories. From banking institutions to conglomerates, finance services to retail, the competition underscored the extensive spectrum of sustainability efforts undertaken by businesses throughout Sri Lanka.
The Banking Category – Sampath Bank PLC emerged as the Runner-up, while Commercial Bank of Ceylon PLC and Hatton National Bank PLC claimed the Joint Winner title, reflecting their exemplary efforts in integrating sustainability practices within their financial operations.
Conglomerates & Diversified Category- Hayleys PLC secured the Winner title for their comprehensive sustainability strategies, showcasing their commitment to responsible business practices, followed by Aitken Spence PLC earning the Runner-up position.
Finance Services & Insurance Category – Ceylinco Life Insurance Limited clinched the Winning title, showcasing their dedication towards promoting financial inclusion and sustainable insurance practices, whilst Alliance Finance Company PLC was the runner-up.
General Services Category – Dialog Axiata PLC stood out in the General Services Category, securing the Winner title through its commitment to sustainable business practices and technological innovation, further reinforcing its position as a leader in the telecommunications sector.
Leisure & Connected Services Category – John Keells Hotels PLC was recognized as the Winner, showcasing its dedication to sustainable tourism and community involvement, while Aitken Spence Hotel Holdings PLC secured the runner-up position.
Retail & Trading Category –Hayleys Fabric PLC claimed the Winning title, while Horana Plantations PLC and Brandix Apparel (Pvt) Ltd were the Joint Runners-up, highlighting their efforts towards sustainable sourcing, manufacturing, and supply chain management.
SME Category – Oxford College of Business (Pvt) Ltd emerged as the Winner, underscoring the vital role of small and medium enterprises in driving sustainable development with Resus Energy PLC being the runner-up.
Overall Winner and Runner-up – Hayleys PLC was crowned the Overall Winner of the ACCA Sustainability Reporting Awards, recognizing its holistic approach towards sustainability across diverse business sectors. Commercial Bank of Ceylon PLC was named the Overall Runner-up, further exemplifying the banking sector’s significant contribution to sustainable development.
Nilusha Ranasinghe, Head of South Asia for the Association of Chartered Certified Accountants (ACCA) stated ‘as we progress towards a more sustainable future, we believe that the Sustainability Reporting Awards 2023 will help to serve as a driving force in motivating every organization to integrate sustainability into their core business models. As more organizations embrace sustainable practices, the collective effort towards building a more resilient and inclusive society grows stronger. This not only benefits the environment but also lays the foundation for a more sustainable and equitable future for generations to come.’
Objectives
Organizations are under mounting pressure from investors, governments, non-governmental organizations and other stakeholders to demonstrate their efforts to manage the impacts of their operations. Public, environmental, social and sustainability reporting is now an important route through which corporate accountability and integrity can be demonstrated. ACCA Sustainability Reporting Awards assist in pushing these issues to the forefront. ACCA Sri Lanka Awards for Sustainability Reporting were launched in November 2004. The objectives of the awards are to:
Reward and recognize those organizations which report and disclose environmental, social or full sustainability information within Sri Lanka
Encourage the uptake of environmental, social and/or sustainability reporting
Raise awareness of corporate transparency issues and increase accountability of responsiveness to stakeholders
All organizations have an impact on the environment and society. These impacts can be direct (from day-to-day operations) or indirect (via the products used and services provided). All organizations should be accountable to their stakeholders and as such, these Awards are open to all sectors and organizations of all sizes.
Judges & ACCA Comments
The judges for the year were Sriyani Hulugalle, Dr Ramani Gunatilake, Dinesh Weerakkody, Dr Ranjith Cabral, and Dr Kennedy Gunawardene. Franklyn Amerasinghe facilitated the work of the Judges. ACCA was represented by Chaaminda Kumarasiri, VC Member Network Panel, who acted as an observer.
The reports were larger in number than the last years and were of exceptional quality. The contest requires that the organization provides a statement of its ‘sustainability performance’ in the period covered. Most of the reports were integrated and an attempt was made to make them easy to navigate through for essential information. Material impacts were identified against Financial, Social and Environmental heads. The performance of the organization relative to its ESG challenges was evident. Efforts had been made in the previous year to integrate sustainability concepts into most of their corporate goals for the year. There were some instances where the need to be green had also resulted in a strategic diversification of businesses.
The judges debated the relative merits of the reports and expressed candid views within the panel. A readable report which is easy to comprehend and covers the essential elements was looked for. Comparisons year on year are a key component of a credible report and are given due weightage. The judges have remained the same from last year, comment was made on reports which showed continuous improvement. Credible data of consultation with key stakeholders, details of feedback, learnings therefrom, and actual improvements in social performance were looked for. Unfortunately, apart from mentioning generalities in this regard, specific instances were lacking.
Industry-specific impacts are still largely ignored, or inadequately dealt with in terms of details of what happens eventually to the waste and such like. The scrutiny of the sustainability practices of their supply chains is also worth probing.
The judges evaluate gender balance and parity concerning compensation and career opportunities. Differently-abled persons and policies for recruitment of such persons could be an area for organizations to show their social responsibility. Targeting services to communities/groups with special needs was given recognition.
Nearly all the companies check their report for compliance with the Global Reporting Initiatives and almost all have sought a limited assurance from a third party for the Non-Financial information. However, some of the assurances given did not improve the credibility of the report and what is ideal is that a third party or stakeholders could confirm the projects and CSR initiatives claimed.
Future Directions
The United Nations Business for 2030 initiative is re-framing sustainable development and corporate sustainability aligned to the Development Agenda and Sustainable Development Goals (SDGs). This paves the way for businesses to partner with their nations in sustainable development and human development. COP28 came up with an agreement that points to the end of the fossil fuel era in the foreseeable future. “Whilst we didn’t turn the page on the fossil fuel era in Dubai, this outcome is the beginning of the end,” said UN Climate Change Executive Secretary Simon Stiell in his closing speech. He said further: “Now all governments and businesses need to turn these pledges into real-economy outcomes, without delay.” The challenge to businesses is clear and in reporting the individual targets set for reducing the carbon footprint would naturally be a matter to be addressed.
Reporting would necessarily have to show how plans are implemented to take forward the ESG plans considering the global challenges. Some discussion of what the achievements were in the period reported on and the gaps identified with plans for the short term and long term are warranted.
Last year we envisaged that a restructuring of public sector services would be seen. The private sector would be challenged to enter into relevant joint ventures with the public sector. The private sector may need to help train staff retained to be more productive and also absorb redundant staff. These restructured institutions which come into the private sector should create ESG plans which are appropriate to national needs.
The sustainability plans for these revamped institutions would naturally include our obligations towards future generations as well as society as it is.
Retaining people and motivating them to remain in the country also has the challenge of creating workplaces which make it possible for employees to think in terms of long-term careers which serve their need for self-development and a comfortable existence. It is seen that under the caption of Intellectual Capital, there is little focus on the development of human capital within organizations. Training is mostly about job specifications and not intellectual enhancement it would seem.
We see it as a challenge for the private sector to interest themselves in education and influence secondary and tertiary educational institutions. Encouraging interest in the planet, and issues such as climate change, are areas for organizations to work on with educational institutions. UN sustainability development goals should be a priority.