Within the ESG Reporting Guide for Australian Companies it is based on three main concepts of Environmental, Social and Corporate Governance. Environmental The first theme illustrated by the reporting guide is the concept of Environmental disclosure. It examines environmental management as well as climate change. In regards to environmental management, it highlights the importance of environmental management to investors since they require all information about a company so that they can make informed decisions about a company’s performance, which is the objective of accounting to fulfil. Poor ESG disclosures or performance can result in reputational damage to the company and subsequently, decreased favourability for current and potential …show more content…
BHP Billiton acknowledges that their operations can result in significant environmental impacts to the community. As stated though in the ESG guidelines investors are looking at the policies of the company in regards to biodiversity management and water management. In the 2015 sustainability report released by BHP Billiton, its state that 85% of their water inputs come from lower quality water sources, this shows that BHP are targeting water management within their company to reduce environmental impacts and maintain one of their core values being sustainability. In regards to biodiversity, BHP have implemented “Arid Recovery” which is a voluntary compensatory action where they look to restore Australia’s arid ecosystems, in a reserve where native plants and animals are protected through community and government partnerships. This disclosure of environment reporting is extensive in regards to the guidelines presented by the ESG Reporting Guide as it acknowledges it will leave an impact on the environment but have implemented measures to order to rectify damages to the environment with policies outlined in the