Discussing sustainability in business context and in performance disclosures: analysis of Brazilian case studies

Morioka, Sandra Naomi; Carvalho, Marly Monteiro de

doi:10.1590/0104-530X2665-16

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Original Article • Gest. Prod. 24 (3) • Jul-Sep 2017 • https://doi.org/10.1590/0104-530X2665-16 copy

Discussing sustainability in business context and in performance disclosures: analysis of Brazilian case studies

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract:

Companies have been showing growing interest in the adoption of practices related to sustainability to mitigate risks and increase their chances of survival. In this context, performance indicators aligned to sustainable development are fundamental to support managerial and operational decisions. This paper aims to evaluate aspects related to corporate sustainability performance applied in the Brazilian context. More specifically, the research seeks to analyze the unfolding of socio-environmental initiatives in the corporate business and the adoption of reports on sustainability indicators, highlighting the challenges involved in these issues. The research is based on case studies, exploring empirical evidence in two large companies located in Brazil. Data were collected through semi-structured interviews with managers responsible for sustainability department. In addition, internal and published documents, such as sustainability reports, were used to generate additional evidence for data triangulation. The case studies analysis pointed out the difficulty of incorporating sustainability into the business context, requiring intensive efforts of multidisciplinary teams to understand the interrelationships and trade-offs between the pillars of sustainability. Moreover, it appears that the use of the GRI indicators (Global Reporting Initiative) can serve as a basis for initial discussions, but there are still challenges to implement a structured sustainability performance measurement system in companies.

Keywords:
Corporate sustainability; Sustainability measurement; Sustainability reporting; GRI indicators

Category		Aspect
ECONOMIC		Clients, Suppliers, Employees, Investors, Public Sector
ENVIRONMENTAL		Materials, Energy, Water, Biodiversity, Emissions and Waste, Suppliers, Product and Services, Legislation, Transport
SOCIAL	Labor policies	Employment, Employee Relations, Health and Safety, Education, Opportunity
	Human Rights	Strategy and Management, Non-Discrimination, Freedom to Negotiate, Child Labor, Forced Labor, Disciplinary and Security Procedures
	Society	Community, Corruption, Political Contribution, Price Policies
	Responsibility for Product/Services	Health and Safety of Consumers, Products and Services, Advertisement, Respect of Privacy

	Case 1 – The agribusiness firm
Sustainability in Case 1	- 2010: creation of the Area of Sustainability - Area of Sustainability: multidisciplinary teams, with the objective to consolidate initiatives data spread throughout the firm - Sustainability committee: involving certain people representing respective business areas as well as external stakeholders (NGOs, financial institutions, forest companies etc.) - Green Team: any employee who wants to propose and take part in sustainability actions
Certifications	- Chemical sites: ISO 14000, ISO 9000 and OHSAS 18000 - Seed sites: ISO 14000 (in progress), ISO 9000 e OHSAS 18000 - ISO 26000: without intention so far
Example of social actions	- Education: dissemination of concepts and sustainable practices - Culture: Support for social inclusion through sponsorship of events
Example of environmental actions	- Projects of energy consumption reduction in industrial units - Project to promote recycling in industrial units and office facilities
Impact to business	- The company's image is directly related to the environment. Therefore, it is essential to be able to communicate their social and environmental concerns. - Reduced risk of image for the company in case of accidents with impacts on the environment and society.

	Case 2 – The technology firm
Sustainability in Case 1	- Started in 2010 in Brazil (in 2009 in Germany) - Area of sustainability: aimed at consolidating sustainable initiatives information throughout the company (governance role) and at leading the two waves for definition of sustainability indicators - Multidisciplinary teams of people interested in sustainability to specific objectives: eco-efficiency, internal communications, vendor selection and engagement of employees.
Certifications	- ISO 14000, ISO 9000 and OHSAS 18000 - ISO 26000: without intention so far
Example of social actions	- One task of training new project managers is to perform a social action, given a limited budget. - Encouragement of volunteer work for the community
Example of environmental actions	- Projects to reduce energy consumption in industrial units - Servitization: sale of bundled services and products (dematerialization) - Alignment between the Area of Environmental Management and the Area of Sustainability
Impact to business	- For the company's business, build your image around sustainability has great potential to add value to their products - Reduce risk of corporate image in case of accidents with impacts on the environment and society.

	Code		Description	Case
	Code		Description	1	2
Economic	EC1		Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings and payments to capital providers and governments	x
	EC2		Financial implications and other risks and opportunities for the organization's activities due to climate change		x
	EC3		Coverage of the pension plan benefit offered by the organization		x
	EC5		Variation in the proportion of lowest wage compared to local minimum wage at significant locations of operation	x
	EC7		Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation		x
Environment	EN3		Direct energy consumption broken down by primary energy source	x
	EN4		Indirect energy consumption broken down by primary energy source	x
	EN8		Total water withdrawal by source	x
	EN21		Total water discharge by quality and destination		x
	EN22		Total weight of waste by type and disposal method	x	x
	EN26		Initiatives to mitigate environmental impacts of products and services and extent of impact mitigation	x	x
	EN28		Monetary value of significant fees and total number of non-monetary sanctions for noncompliance with environmental laws and regulations	x
	EN30		Total investments and expenditures in environmental protection by type	x
Work policies	LA1		Total workforce by employment type, employment contract and region	x	x
	LA4		Percentage of employees covered by collective agreements		x
	LA7		Rates of injury, occupational diseases, lost days, absenteeism and work-related deaths by region	x	x
	LA8		Education programs, training, counseling, prevention and risk control in place to assist employees, their family or community members regarding serious diseases		x
	LA9		Issues relating to health and safety covered in formal agreements with trade unions	x
	LA10		Average hours of training per year per employee broken down by functional category		x
	LA12		Percentage of employees receiving regular performance analysis and career development		x
	LA13		Composition of area responsible for corporate governance and breakdown of employees per category according to gender, age, and other indicators of diversity.	x
Human Rights		HR6	Operations identified as having significant risk for occurrence of child labor and measures taken to contribute to the abolition of child labor	x
Human Rights		HR7	Operations identified as having significant risk for occurrence of forced labor or compulsory labor and measures taken to contribute to the eradication of forced or compulsory labor	x
Society		SO1	Nature, scope and effectiveness of any programs and practices that evaluate and manage the impacts of operations on communities, including entering, operating, and exiting		x
		SO2	Percentage and total number of business units analyzed for risks related to corruption	x
		SO3	Percentage of employees trained in anticorruption policies and procedures of the organization	x	x
		SO4	Actions taken in response to incidents of corruption		x
		SO8	Monetary value of significant fees and total number of non-monetary sanctions resulting from non-compliance with laws and regulations	x
Responsibility for product/ service		PR1	Phases of products and services life cycle that impact on health and safety are assessed for improvement, and percentage of products and services subject to this procedure		x
		PR3	Type of information about products and services required by labelling procedures, and percentage of products and services subject to such requirements		x
		PR5	Practices related to customer satisfaction, including results of surveys measuring customer satisfaction		x

Universidade Federal de São Carlos Departamento de Engenharia de Produção , Caixa Postal 676 , 13.565-905 São Carlos SP Brazil, Tel.: +55 16 3351 8471 - São Carlos - SP - Brazil
E-mail: gp@dep.ufscar.br

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[1] Source: Adapted from GRI (2013)Global Reporting Initiative – GRI. (2013). G4 sustainability reporting guidelines: reporting principles and standard disclosures. Amsterdam..