Environmental Management For Sustainable Development

Abstract:

The discussion focuses on the different aspects of the sustainable development and its effect on the environment. The present world is filled with pollution and the non-sustainable use of the natural resources. This constantly reminds of the facts these types of practices will exhaust the natural resources in the near future and lead the world to a global catastrophe. For this analysis the discussion focuses on the different sustainability techniques and especially on one particular framework known as the Triple Bottom Line framework to measure the amount of sustainability that can be achieved by a construction company. For the further analysis of the sustainability a case study on a construction company is developed. The discussion further focuses on the different policies that are adopted by the company for the sustainable development.

Introduction:

The global warming and increasing population has increased the burden of the workforce, which is actively involved in the maximum consumption of the natural resources and the human resources. These generally leads to the exhaustion of the natural resources and at the same time affects the life of the common people. If these resources are continued to be used at the present rate then it will be only in a few years’ time when the resources will be completely exhausted and leave the population of the earth at the mercy of the nature (Milne and Gray 2013). Catastrophic situations are not far enough and it is high time that the world thinks about different policies, which can sustainably develop new strategies to counter these adverse situations.

The primary responsibility of this sustainability falls on the corporate companies, specifically the construction companies, which are directly involved in the use of the natural resources. Sustainability is the practical theory that requires to be applied by each of the companies in order to decrease their carbon footprint and at the same time increase their contribution towards the society. The corporates can apply their huge financial investments and advanced technical knowledge for the further development of advanced policies, which can enhance the generally accepted methods of environmental conservation and reduce the damage of the natural resources. This can help them to preserve the natural resources for the future generations.

For this process, the discussion will focus on the different sustainability techniques and the especially on one particular framework known as the Triple Bottom Line framework to measure the amount of sustainability that can be achieved by a construction company. For the further analysis of the sustainability a case study on a construction company is developed. The discussion further focuses on the different policies that are adopted by the company for the sustainable development.

1 General Concepts:

1.1 Triple Bottom Lines:

The modern business requires the effective development in a very sustainable manner. This includes the different aspects of the business such as the profits, return of investment or the value of the shareholders. However, the measurements of these aspects form the primary part for determining the sustainable development of the organization. This measurement required a new accounting framework that could take a new approach in determining the factors. The Triple Bottom Line (TBL) is such an accounting framework that was developed by John Elkington to add the additional dimensions of environmental and social dimensions in the measurement of the different aspects of the sustainable development (Elkington 2013).

The three aspects of measurement that the TBL includes are the social, environmental and financial. These aspects can be defined more technically as the 3Ps, which are people, planet and profit. The general concepts of measuring the social dimension looks to measure the benefits of the organization through the human capital. It analyses the factor how the work culture of the organization affects the local community and how the sustainable development of the company takes place accordingly. Measuring the Environmental aspects include the analysis of the different activities of the organization and determining how they affect the environment (Schmuck and Schultz 2012). This requires a detailed study of the products used or the manner of energy consumption that is done by the organization, which provides a detailed report of the environmental aspect. Measuring the economic aspect involves the analysis of the impact of the organization on the economic environment of the community. However, in the TBL, it is essential to determine the social and environmental health besides the economic health of the community in order to determine how the organizational activities have affected the society in order to understand how the impacts on the community are being used for the sustainable development of the company.

1.2 Sustainable Development:

The concept of sustainable development is a very modern concept of developing business strategies in order to develop the business activities for the benefits of the organization. However, the concept of sustainable development has a very broad area of research, as there are never any concrete solutions or strategies to understand the business activities or development (Blewitt 2012). The situation varies according to different objectives but the primary objective of the sustainable development is focused upon the preservation of the capital resources for the beneficial use in the future. While it was a general notion to consider the economic factors as the key capital of a running organization, the view has changed greatly in the modern era. Similar importance has been laid upon the environmental and the human resources.

The key concept of the modern sustainable development is focused on the overall development of the organization whose primary focus is to enhance a better lifestyle and work culture through the benefits of the organization. Thus, it is essential to understand the economic factors, and how they enhance the different capital prospects such as the environmental factors and the human resources. The sustainable development of a business is also beneficial for its operations as it opens up newer possibilities due to the development of innovative strategies and objectives. It is common for an organization to have a traditional approach of enhancing the profits. However, this might have a negative impact on the capital resources and exhaust them in the future. However, sustainable development causes a dismissal of this kind of practical approach. It enhances a universal approach that focuses not only on the overall development of the organization but also on the community, which is affected by it.

However, there is also a theory about strong and weak sustainability. Strong sustainability suggests the overall approach to the development. It considers all the factors that are important to be preserved. On the contrary, weak sustainability focuses on some aspects of the development. It allows the deliberate depletion of some resources for the purpose of the primary developments.

1.3 Significance of TBL in Sustainable Development:

Sustainable Development focuses on the different aspects of the organization. The primary motive of Sustainable Development is the development of not only the economic factors but also the environmental and social factors. The Triple Bottom Line theory, similarly takes a measurable approach towards the three aspects of people, planet and profit (Gimenez, Sierra and Rodon 2012).

It is important to understand that sustainable development requires investments in the different sectors and process different development strategies. However, it is important to understand the approach that should be taken towards these development processes. Moreover, in the present scenario of engineering development it is essential to understand the effects of the engineering materials on the environment and the impact towards the sustainable development (Reed 2013). In the present context, the word sustainable development is generally related to the environmental aspects because owing to the present drive of development and construction, the natural resources are under the constant threat. The future reminds the society that without proper planning and sustainable development the resources are going to exhaust in the future.

The regular deforestation and air pollution for the different industrial advancements and engineering projects has turned a blind eye towards the darker future that these activities pose towards the future generations. The imminent dangers are that of hunger, poverty and a polluted environment, which would increase the diseases and affect the well-being of the people.

However, there is always time to mend the mistakes and therein comes the concept of sustainable development but at the same time it requires proper planning and execution (Savitz 2013). During any industrial operation the prime focus is upon the calculation of the profits, however, in the present scenario it is also essential to calculate the adverse effects that it may have upon the environment and the capital that is being spent in those activities. These measurements and calculations requires to take into accountability several factors which can be implemented effectively by the theory of the TBL. These factors are on the lines of the determination of the aspects based on Measurability, Accountability, Benchmarking and Affectivity (Halpern et al. 2013). These methods might not be helpful in getting the exact quantitative results but it can help in obtaining a proper understanding of the actual effect on the environment and thereby formulating new strategies for the sustainable development and the environmental preservation.

1.4 Sustainable Construction:

The construction industry is one of the highest grossing industries in the world with a contribution of more than 13% of the Global GDP. However, the construction industry, in this process consumes the natural resources, non-renewable energy resources and engages millions of workers. The primary requirement for these kind of activities is an active investment towards the sustainable development of the industry (Hollos, Blome and Foerstl 2012).

Sustainable construction is a rising concern or the construction companies, which can help them, find different alternative methods for carrying out their activities in an environmental friendly manner and abiding by the different environmental rules and regulations. The sustainable construction is also a matter that requires high affectivity and should consider all the environmental and social factors. An in-depth analysis of the present activities reflects the severity of the condition and what requires to be done. For example, the construction industry consumes more than 40% of the energy that is developed in any given country (Isa, Jimoh and Achuenu 2013). Thus, it can be seen that the process of urbanization and industrialization, indirectly consumes more than half of the raw materials such as fossil fuels or other non-renewable energy resources. It is beyond doubt that this graph is on the rising side, where the consumption is going to increase in the coming years and is going to have a serious effect on the environmental aspects of the society. It is essential to measure the impacts of the construction industry in the TBL framework in order to understand how severe is going to be the effect of resource depletion and pollution in the coming years (Zhao, Zhao, Davidson and Zuo 2012).

If the environmental aspect is taken into consideration, it has to be understood that a sustainable management is essential in the current scenario. This management system can investigate into the matters, which cause the depletion of energy resources and at the same time devise new strategies to include alternate energy sources into the system (Imran, Alam and Beaumont 2014). Solar energy can be a useful alternative for the production of the energy required for the construction process. This can reduce the pressure on the natural resources and can preserve them future use. Another environmental issue that the construction companies cause is the water pollution. A lot of water is wasted and the waste products pollute the rivers. However, by sustainable development it can be possible for the companies to employ wastewater management, which can be further used, again by the company. Moreover, the production of different construction elements cements and concrete produce lots of air pollution and development of technologies using sustainable strategies can reduce the pollution (Govindan, Khodaverdi and Jafarian 2013). The sustainable strategies thus help in the maintenance of a better quality environment for both living and sentence.

Coming to the second part of the effect of the construction, the discussion focuses on the social effect. It is essential for the construction companies to strategically develop policies to create a safe environment for the workers in the places of work. Safety is a primary right for everybody working in a company. Working in a construction company poses different risks at different points of time. However, it is the responsibility of the company to implement advanced technologies for the safety of the workers and educate them about the sustainable use of the resources. Another important factor is child labour. The construction company should be aware of the fact that they discourage this practice and make the employees aware about not engaging child labour.

The key responsibility of a construction company is to develop certain strategies, which enhances the sustainable development (Bynum, Issa and Olbina 2012). These strategies gradually decrease the cost of production and other effective costs in the long run and help in the environmental and the social development of the working community in the company.

2 Sustainability Report:

The Global Reporting Initiatives (GRI) is the organization, which acts as an international body and independently assists the different governments and private organizations to assess their work activities and publish reports on their respective impacts on the community based on the TBL framework, which are primarily Financial, Environmental and Social activities.

In the following discussion, the GRI framework is being used to write a report on the sustainable development of a company, which highlights the key issues and the challenges faced by the company and how it plans to counter them by implementing its own strategies and visions for the future.

2.1 Introduction:

Downer Group is considered to be one of the largest multiple utility infrastructure development companies in New Zealand and Australia, which aims to provide the best services and quality to its customers as well as the employees. The company aims at excellent technological development and aims to employ state of the art facilities to enhance the working conditions of the workers. The discussion employs the analysis of the different economic, environmental and social factors, which are used by the company. The annual planning of the company includes the strategic approach and the employment of strategic policies, which will benefit the integrated management system and produce good quality services to the stakeholders.

2.2 Strategies and Analysis:

The vision of the company discussed above requires the employment of certain strategies which will elevate the company to its projected position in the next few years. Some of the key strategies of the company are as stated below:

• Enhancement of the technology used by the company and using newer and environmental friendly measures for future industrial projects.
• The company aims to employ socially ethical business policies to enhance the work-culture of the workers and to offer them a better lifestyle.
• The company aims at the implementation of environmental policies which will look forward to the use of renewable sources of energy and aim at the sustainable development of the company.
• The company will look forward to expand its operations to more locations but in a sustainable manner.
• The company will look forward to provide greater value to its stakeholders and investors by offering them better returns. But at the same time, the company will also be aware of not using any policy that will compromise with the idea of sustainable development.

The analysis of the above strategies helped Downer Group to define its values and principles according to the TBL framework. The values and the principles are derived from the amalgamation of the different strategies as has been discussed.

2.3 Organizational Profile:

Downer Group is a construction company, which promotes construction and several other civil engineering works such as building transport facilities and infrastructures in different parts of the world. The company has a history of more than 150 years, and since then has significantly spread all over New Zealand, Australia, several South-Pacific countries, South America and South America (Downergroup.com, 2018). The company has a large number of employees counting to more than 56000 spread around more than 300 engineering sites (Downergroup.com, 2018).  Downer Group has a significant presence in the New Zealand Stock Exchange and in the Australian stock market.

The company has a large number of high value properties on which they are promoting several multifunctional projects and infrastructural developments. With the large number of proper and future prospective investments, Downer Group considers the customer satisfaction to be their prime objective. Moreover, it has developed a policy named Zero Harm, which propagates a sustainable approach to all the projects and aims at reducing the environmental pollution (Downergroup.com, 2018).

Competitive challenges of Downer Group:

• Diversity: The Company has a strong financial background, which allows it to invest in different high value projects all around the world and have an edge over the competitors by developing them guided by their visions of sustainable development.
• Development: The Company has a large global presence with branch offices spread out all around the world. This expansion helps the company to develop a strong management team that can handle complex projects and approach them with innovative and broader outlook.
• Sustainability: The Company has the ability to predict the profits for the sustainable distribution among the shareholders and investors. The management team handles the operations in a sustainable manner and maintain the profits stability.

2.4 Reporting Parameters and Indicators:

Downer Group is committed to the sustainable development and the measurement of the sustainability is done on the TBL framework. The sustainability report is published annually on the basis of certain parameters of the GRI framework.

GRI 1. SOCIAL:

• Safe working environment: The organization maintains a yearly target of zero accidental damages caused by incidents
• Development of talented employees: The Company aims at providing adequate training for the employees in order to develop them.
• Employee Satisfaction: The Company aims to satisfy each employee needs, by letting them actively participate in the company activities.
• Diversity: The Company aims at social equality and diversity in order to encourage people from different races and gender to participate in the work force.
• Employee retention: The company targets to retain the maximum number of employees by providing them with the required amenities and always trying to care for them.

GRI 2. ENVIRONMENT:

• Reducing energy consumptions and CO₂ emissions: The Company aims at reducing the carbon foot print by applying eco-friendly processes and innovative technology.
• Reducing Wastes: The Company targets to reduce the amount of the waste that was generated and increase the methods like recycling and reuse for the sustainable development of the company.
• Sustainable building: Being a construction company it is important to maintain a status of using sustainable building materials by eco-friendly processes.
• Water management: The Company aims at reducing the use of water to a sustainable limit in order to avoid water waste in the building sites.
• Energy Management: The Company aims at reducing the energy consumption to a sustainable limit by cutting down unwanted use of energy and by employing renewable energy sources to its operations.

GRI 3. ECONOMY

• Improving Sustainability in economy: The company aims at reducing the miscellaneous costs related to the company operations to maximize the profit
• Risk management: The Company aims at developing efficient risk management systems to monitor the economic risks that can occur at any point of time due to the high and low economic graphs.
• Local economic growth: The Company aims at promoting local economic growth at the project sites to enhance sustainable development.
• Ethical business: The Company aims at practising ethical business practices throughout the year.
• Bribery and Corruption: The Company maintains a strict code of conduct against bribery and corruption. It has a strict policy of making the employees aware of the strict policy that the company maintains against corruption.

2.5 Governance, commitments and engagement:

The key success element of Downer Group lies in the fact that it applies an effective governance to develop sustainability and pacify the stakeholders and the investors. The key governance attributes of the company are:

• Sharing and distribution of duties and responsibilities among the management team.
• A proper infrastructure to tackle risk management and internal issues.
• Strong financial capacity
• Advanced recruitment of proper talents
• A proper department that looks after the sustainable development of the company.

The above elements make sure that there are no conflicts in the internal framework of the company. The large number of offices and branch offices help in the effective management of the resources and also maintain the commitment that the company has towards the stakeholders and investors. The risk management team assesses the key aspects that can pose as problems for the company and predicts the solution beforehand to avoid any untoward situations that can malign the image of the company in front of the stakeholders and investors.

The company is active in engaging with government bodies and local communities to participate in the environmental and community development programmes. The annual reports about the company’s reducing carbon footprint are periodically shared with the government bodies in order to remove any barrier that can appear in the way of collaboration. These helps the company to improve the living standards of the people and that of the company employees and encourage them to participate in the sustainability drive of the company.

Management Approach:

Downer Group has a very strong management team that upholds the company vision for making the future better for the company. It believes in the sustainable development of resources and focuses on the methods that can help to build a secure future for the company (Weber, Diaz and Schwegler 2014). This vision helps the management team to develop different features for the stable development of the company and achieve an environment friendly status for the sustainable development.

• The primary aim of the company is reducing the consumption of energy by choosing to use the alternative energy sources such as the solar energy and other renewable sources. This will also help in the conservation of the conventional sources of energy such as petroleum and coal. The benefit from this strategy also reduces the carbon emission and highlights the company’s contribution towards the reduction of the air pollution (Li, Yang and Lam 2013). This lower the emission of the carbon gaseous elements in the environment.
• The company looks forward to care for its stakeholders and other investors. This can be done by maximizing the profits of the company by improving the use of sustainable policies. Moreover, the implementation of new policies and advanced technologies can increase the production and the profits of the company. This can let the company to live up to the expectations of the stakeholders and the investors. The company also focuses on the efficient expansion by acquiring valuable properties and development of state of the art facilities which secures the financial position of the company.
• The company aims at providing a safer working environment for the employees. This includes educating the employees about the proper use of the new and advanced technologies. Moreover, maintenance of safety measures and the development of new policies for the insurance of the workers can motivate them to produce more work in the limited period. The management looks forward to the development of the sustainable use of the human resource capital which is considered to be one of the key assets of the company.

Key Issues and Challenges of Reporting Sustainability:

• It is almost impossible to determine the audience for whom the report is being prepared. For a large company like the Downer Group, which comprises of a large number of customers and stakeholders, the different issues may have different importance to the diverse audience. Hence, it becomes almost impossible to address a particular set of audience.
• In order to prepare the report of a large company like Downer Group, a large organizational procedure is required. Compilation of data and gathering information is a mammoth process, which becomes a burden for the company.
• The key aspect that has to be kept in mind while preparing a sustainable report is that the report focuses on the merits and demerits of the sustainable policies of the company. Hence, the report must be made in an unbiased manner and should not be presented as a promotion of the company.
• The report must be a balanced analysis of the data from the company, which should report all the impacts, and the diverse performances of the company. Moreover, it should report the opinions of different employees of the company.
• Using the report to develop and enhance the company policies for better performances in the future should be the primary motive behind the preparation of the sustainability report.

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