Discuss About The Transactions Of Royal Society Of Tropical Medicine And Hygiene.
Indicating about the need for sustainable strategy by business
The overall assessment aims in identifying the significance of sustainability strategy, which would allow organisations to obtain adequate performance, while maintaining environmental, social and governance factors. The main hurdle that is presented to organisation now days is to follow the sustainability measures that are imposed by regulators while maintaining steady flow income from operations. The assessment directly evaluates the theoretical knowledge and imperial resources that has been conducted on the sustainability approach, which needs to be maintained by organisation. Further evaluation on annual report of Rio Tinto for the fiscal year of 2015 and 2018 is satisfactorily conducted for identifying the changes in sustainability report that is being be depicted by the organisation. The significance of sustainability innovation is adequately depicted in the assessment, which needs to be implemented by organisation to support the regulatory requirements and improve revenue generation capability. Therefore, with the implementation of adequate strategy organisations can improve their current operations.
In light of the current trend, using sustainability programs within the organisation is directly reducing the level of carbon emission and waste, which is beneficial to the environment and Society. However, complying with the regulations of sustainability programs is directly hampering the organisational capability to continue its productivity and profitability. In mere business terms, it can be detected that organisations that are not for leaving the sustainability approach is directly getting hampered by regulators, governments and society. Therefore, it is necessary for the organisations to develop an adequate strategy that supports sustainability programs, while improving their current productivity. The adoption of these measures is directly allowing the organisations to innovate new ideas for production, which is improving the competitiveness in the market and generating higher market capitalisation (Pearce, Lonnroth & Raviglione, 2016).
Figure 1: Depicting the performance frontier for firms with ESG
(Source: Hbr.org, 2013)
The above figure directly depicts the level of performance Frontier for organisations, which is in accordance with the ESG. This evaluation directly helps in detecting whether the organisation needs to improve their financial performance or the ESG performance. The craft directly represents the level of activity that need to be conducted by the organisation for improving the financial performance and ESG performance, which would lead to an adequate output. Therefore, it could be understood that organisations having high performance would eventually need to do innovation, as the ESG performance has been relatively low. However, organisations, which are increasing the ESG performance is seeing the decline in their financial performance. On the other hand, if organisations need to increase their financial performance and ECG performance they need to conduct major innovations for reducing the damages that are conducted to the environment and Society. This would eventually allow the organisation to accommodate the components of ESG and increase their current financial performance to support the interest of their investors (Rowledge et al., 2017).
Four broad initiatives for developing innovative programs for sustainable strategies
Four broad initiatives need to be taken into consideration for developing the innovative programs for sustainable strategy. The broad initiatives are depicted as follows.
The major concern for the organization is to identify the material ESG issue that is being highlighted by the organization. The organization to identify the impact that will be on the financial performance of the company when ESG standards are implemented within its operations. The organization also needs to evaluate the strategy on the basis of its current financial problem and whether the implementation of adequate sustainability measures would affect their current financial performance. Therefore, it is essential for organization to identify the materials that is hindering the organization to obtain ESG.
The organization will need to evaluate their current material for understanding the issues that can hinder the performance of ESG. This evaluation would eventually help in detecting the relationship between financial and ESG performance. The organization need to conduct adequate calculation identifying the level of expenses that we will be needed for improving ESG performance. The use of financial calculations would eventually help in detecting the level of expenses that need to be conducted by the organization to generate adequate return from investment in future. Organizations related to return on investment calculation for identifying viability of that is propose for improving there ESG performance. This eventually helps in maintaining an adequate investment streak to generate higher returns from investment (Baumgartner, 2014).
Analysis conducted on the relationship between ESG and financial performance would eventually allow the organisation to draft an adequate innovative strategy, which could generate higher returns while complying with the environmental regulations. The innovative measures such as reducing the manufacturing waste, incorporating the modern innovations and enhancing efficiency would eventually allow the organisation to minimise the negative impact on environment and improve their financial performance. Therefore, with the implementation of adequate business models organisations are able to improve their current operations, while reducing the total carbon emission. This will eventually improve the level of income that can be generated from investment.
The major concern for the organisation is to communicate the company’s innovations to the stakeholders, as the declining financial income would directly affect their current income. Therefore, the company needs to come up with an adequate plan for delivering the information regarding the level of innovations that has been conducted to support the measures of sustainable growth. The issue of integrated reporting needs to be conducted by the organisation for delivering the level of innovations that has been conducted during the fiscal year. This communication would eventually help in transferring the information from the organisation to the stakeholders of the company (Baumgartner, 2014).
Evaluating the sustainability report of Rio Tinto for understanding the significance of Sustainable strategy
After evaluating the sustainability, report of Rio Tinto adequate changes in the current report format in comparison to 2015 can be identified. The organization during 2015 was mainly focusing on economic, environmental and social factors that were connected to the inner workings of your organization. However, the evaluation of 2017 sustainability report mainly affected level of different measures that has been utilized by the organization to support the sustainability strategy. The company started to evolve the current operation and implement innovative ideas for reducing the level of carbon emission and reducing the negative impact of their operations on environment. In this context, Pearce, Lonnroth and Raviglione (2016) stated that Companies using sustainability approach is relatively like to buy the society and government, as they are complying with all the relevant regulation while conducting their operation.
The evaluation of the sustainability report relatively helps in depicting the changes and alteration that has been conducted by Rio Tinto in formulating the report of 2017 as compared to 2015. During the fiscal year of 2015, the organization was mainly focused on the GRI reporting index for detecting their current sustainable measures. Therefore, the reporting was relatively limited to the economic environment class Social measures that have been conducted by the organization during the year. However, the organization did not innovate any kind of further improvements which could be reduced current environmental damages that was been conducted through their operations. Rowledge et al., (2017) stated that GRI index relativity lays the reporting format, which needs to be followed by the organization to depict their current operations to their shareholders. Hence, it could be understood that Rio Tinto followed the minimal requirements for completing with the preparation of sustainability report during the fiscal year of 2015. On the other hand, the measures taken by the company during the fiscal year of 2017 was relatively different by preparing the sustainability report (Riotinto.com, 2018).
The evaluation of 2017 sustainability report of Rio Tinto relatively depicted the different contents that were addressed by the organization. The report relatively depicted that all the reporting matters we discussed in the sustainability section where your organization followed all the regulation mentioned by the government in controlling there environmental damages. The company focused the sustainability report in developing and representing the methods that was used in supporting their employees. Furthermore, the relationship with the community that was addressed in the sustainability report directly depicted the measures taken by Rio Tinto for improving the relationship and reducing the negative impact on environment. Further information was also delivered about the Environment protection method that was used by the organization for reducing the damages through the mining operations. The company adequately developed and innovative technology for reducing the damages to the environment and maintaining the output capacity, which was eventually supported by the management. Additionally, the Government of integrity was also discussed in the sustainability report of Rio Tinto.
Further discussion that was conducted on disability report was of value chain analysis, which indicated the improving method that was implemented by the organization to support their operational. Likewise, the sustainability fundamentals and performance data of Rio Tinto was discuss in the sustainability report, which reflected the operational improvement of the organization during the value of 2017. The information regarding the Global reporting initiative index that has been followed by the organization is also depicted in the sustainability report. From the evaluation should be understood that the organization has fulfilled maximum of the Global reporting initiative index, while preparing the sustainability report. Hence, it could be understood that the organization has followed maximum of the Global reporting initiative index while preparing their current reports for 2017. Moreover, the company has adapted to sustainable strategy, which eventually allowed the organization to improve their operation and reducing the negative impact on environmental damages (Riotinto.com, 2018).
From the overall evaluation of the above assessment could be identified that organization needs to have sustainable strategy in the current era, as both the society and government implements ESG laws that need to be followed by management. Therefore, organizations need to have an adequate strategy, which would eventually help in supporting the sustainable and financial performance. The example of Rio Tinto has been taken into consideration feasibility report of the organization is evaluated for the use of 2015 and 2017. This evaluation eventually helps in detecting the level of changes that has been implemented by the organization during these years. The change and alteration that has been imposed by the organization has relatively seen an upward trend for the company, as the adoption of innovations has supported their operations. Hence, the implementation of sustainable strategy would eventually allow the organization to generate high level of income, while maintaining the ESG laws.
Baumgartner, R. J. (2014). Managing corporate sustainability and CSR: A conceptual framework combining values, strategies and instruments contributing to sustainable development. Corporate Social Responsibility and Environmental Management, 21(5), 258-271.
Hbr.org. (2013). Harvard Business Review. Retrieved 6 September 2018, from https://hbr.org/2013/05/the-performance-frontier-innovating-for-a-sustainable-strategy
Pearce, D Lönnroth, K., & Raviglione, M. (2016). The WHO's new End TB Strategy in the post-2015 era of the Sustainable Development Goals. Transactions of the Royal Society of Tropical Medicine and Hygiene, 110(3), 148-150.. (2014). Blueprint 3: Measuring sustainable development. Routledge.
Riotinto.com. (2018). Riotinto.com. Retrieved 6 September 2018, from https://www.riotinto.com/documents/2015_RBM_Sustainable_Development_Report.pdf
Riotinto.com. (2018). Riotinto.com. Retrieved 6 September 2018, from https://www.riotinto.com/documents/RT_SD2017.pdf
Rowledge, L. R., Barton, R., Brady, K., Fava, J., Figge, C., Saur, K., & Young, S. (2017). Mapping the Journey: case studies in strategy and action toward sustainable development. Routledge.
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