SUSTAINABILITY ACCOUNTING

Sustainability Accounting and Its Relevance



Summary

This report discusses the overall impact of Sustainable Accounting and how Accountants can work well to make sure that all the relevant Stakeholders of the business are taken into consideration when there is any decision needed to be taken regarding the value addition of stakeholders. The sustainability report of BHP Billiton has been analyzed and it has been discussed what sort of steps are taken by BHP Billiton as far as sustainability accounting and reporting is concerned. There is also due consideration given to how standards and practices of Sustainability Accounting are needed to be implemented at global level.

Introduction5

Part 1 Sustainability Reporting at BHP Billiton6

Company Profile6

BHP Billiton and Sustainability6

Dow Jones Sustainability Index7

FTSE4Good7

Storebrand7

Analysis of Sustainability Reports8

Zero Harm8

Healthcare8

Safety9

Environment9

Community Based Programs9

External Review of BHP Billiton's Sustainability10

Direct Action10

United Nations10

Part 2 Sustainability Accounting11

Industry Leaders in Sustainable Accounting11

Lack of Research on Sustainable Accounting11

Yardsticks for Sustainable Accounting12

What Firms need to do?12

Sustainability Report12

Need for Communication in Organizations13

Need for Professional Accountants to Step up13

Necessity of Information14

Other Role of Accountants14

Part 3 Looking at the Global Perspective15

History of Ethical Investments15

Ethical Responsibility of an Investor16

Where Sustainable Accounting can help16

Idea of Non Financial Reporting17

What Accountants Need to Do, What Standards are needed to be followed17

Conclusion19

References20

Appendix22

Appendix 122

Appendix 223

Appendix 324

Sustainability Accounting and Its Relevance

Introduction

Sustainability accounting, it is also known as social accounting, social as well as environmental accounting as well as many jargons are being used for them are known as social responsibility accounting. It is originated about 20 years ago. It is one of the sub categories of financial accounting that stresses on the avid disclosure of non-financial information shown to non-financial stakeholders. They represent the activity of the firm about the external parties. Some of these activities have an impact directly on the society, environment and economic performance as a whole.

Part 1 Sustainability Reporting at BHP Billiton

Company Profile

BHP Billiton is an Australian firm that is in the business of multinational mining and Petroleum Company which has its headquarters in Melbourne Australia. Its major investment office is in London UK. IT has been termed as one of the largest mining companies in the world as far as revenue is concerned. Last year, in February, they were the third largest company in mining sector as far as market capitalization is concerned(Billiton Sustainability Report, 2012, p.14). It was created in 2001, with the eventual merger. It was a merger of Anglo-Dutch Billiton plc and Australian Broken Hill Proprietary Company Limited. Due to its nature, it has been listed as dual company. The Australia register this firm with the name of BP Billiton limited, it is one of the majority partner. It has primary listing in Australian Securities Exchange and is one of the larger companies in Australia. Then there is BHP Billiton registered in UK, it has primary listings in LSE and is also a part of FTSE 100 index. With the market capitalization of 39.6 billion pounds as of last December 2011. This market capitalization made it ninth largest company that is listed in ...