Acct2105 group 12 team 05 group assignment 2_Sustainability Reporting Practice Group Report

ACCT2105_ Group 12_ Team 5_ Understanding Sustainability Reporting Practice

ROYAL MELBOURNE INSTITUTE OF TECHNOLOGY
SCHOOL OF BUSINESS AND MANAGEMENT

SUSTAINABILITY REPORTING PRACTICE GROUP REPORT
CALLON PETROLEUM CORP & WOODSIDE PERTROLEUM CORP

Subject Code: ACCT2105
Subject Name: Accounting in Organization & Society

Lecturer Name: Vinh Tran Phuc
Group Number: 12 _ Team Number: 05

Group Members:
Word Count: 1430
Page Number: 10

1.
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ACCT2105_ Group 12_ Team 5_ Understanding Sustainability Reporting Practice

Table of Contents

I. Introduction.......................................................................................................................................3
II. How are they reporting it?................................................................................................................3
III. What’s being reported?.................................................................................................................3

1. Environmental performance.........................................................................................................3
2. Social performance........................................................................................................................4

IV. Why are they reporting it?............................................................................................................5
V. Schneider Electric Vietnam..............................................................................................................6
VI. Conclusion......................................................................................................................................7
VII. References......................................................................................................................................7
VIII. Appendices.....................................................................................................................................9

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ACCT2105_ Group 12_ Team 5_ Understanding Sustainability Reporting Practice

I. Introduction

Recently, people are more aware of businesses’ sustainability about how companies deal with social,
economic, and environmental problems. Consequently, most organizations have released sustainability
reports voluntarily to show transparent information to stakeholders and take responsibility for those
concerns (Ehnert, et al. 2015). Like many other companies, Callon Petroleum and Woodside Petroleum
Corporations have also published their sustainability reports extensively. Callon is one of the largest Oil
and Natural Gas organization concentrating on the investigation, and improvement of superior resources
in West and South Texas, US (Callon 2021). While Woodside is the leading company of the liquefied
natural gas (LNG) and oil development in Western Australia (Woodside 2020). This report will analyze
similarities and differences in the sustainability development of both companies. Finally, there will have a
brief analysis of the Schneider Electric Vietnam operation as well as make several comparisons between
SEV and the above organizations.

II. How are they reporting it?

Both sustainability reports are available on their companies’ official websites that their stakeholders can
approach the information straightforwardly. Additionally, Woodside and Callon are guided by the Global
Reporting Initiative (GRI) standards to understand how society and the environment affect their business,
enhance consistency when disclosing corporate information (Courtnell 2019). Generally, both companies

use the statistical data, graphs, tables, and images for each subcategory in the reports to make them more
compelling and convincing. Separately, Callon declares an adoption of ESG initiatives for delivering its
CSR performance (Callon Petroleum Ltd, 2021). Callon uses the CSR framework because it can
demonstrate transparency and capacity to catch the changing demand of stakeholders (Callon 2019).
Compared to Callon, Woodside prepared its report under International Petroleum Industry Environmental
Conservation Association (IPIECA) (Woodside 2018). IPIECA framework is beneficial because it assists
Woodside’s administrators with good practices for the planning process and gives critical information for
solutions with scientific analysis (IPIECA 2020).

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ACCT2105_ Group 12_ Team 5_ Understanding Sustainability Reporting Practice

III. What’s being reported?

1. Environmental performance
a. Similarities

Firstly, two corporations focus on reducing carbon footprint and harmful influences of toxic gases on the
environment. Callon advocates replacing most internal combustion engines, then applies advanced
operational machines to mitigate GHG greenhouse gas emissions and operating costs (Callon 2019).
Similarly, Woodside substitutes electrical machinery for traditional fuel-operation mechanical systems
that drive improved performance in diminishing carbon footprint (Woodside 2019). Secondly, both
companies actively carry out partnerships with global environmental and regulatory organizations to
encourage transparency, as well as innovation on their commitment to sustainable development. For
example, Callon and Woodside affiliates to Permian Basin Petroleum Association and Greening Australia
Association, respectively to exchange technique information, in-depth knowledge, and emissions
reduction strategies.

b. Differences

Besides, each company conducts different comprehensive plans to solve environmental problems. Callon
enthusiastically attempts to ensure local water suppliers, reduce freshwater consumption and enforce land
stewardship (Callon 2019). They endeavor to preserve local freshwater supplies by utilizing alternative
sources as recycled produced water and non-fresh water for their operation. Callon diminishes water
usage through hydraulic fracture modeling and dynamic designing oversight during admirably fulfillment
operations (Callon 2019). Finally, Callon makes environmental site appraisals before building new
construction, spill prevention measures during operation, disposal of waste after to prevent land pollution
(Callon 2019).

On the other hand, Woodside invests in tackling environmental challenges by decreasing fuel utilization
and discovering environmentally friendly energy sources (Woodside 2020). Woodside uses advanced
technology such as high-efficiency turbines and lithium-ion batteries to reduce fuel consumption
(Woodside 2019). Furthermore, Woodside runs the “Karratha Gas Plant” project to optimize power
generation for operational activities (Appendix 1). They progress a market for LNG to transfer the higher

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ACCT2105_ Group 12_ Team 5_ Understanding Sustainability Reporting Practice

discharges fuels and promote hydrogen production since hydrogen is a clean-burning power source that
can minimize gas emissions (Woodside 2019).

2. Social performance
a. Similarities

Callon and Woodside perform their resemblances in guaranteeing workplace safety, staffs’ well-being,
especially in the COVID-19 epidemic. Initially, those companies established some rules and policies to
encourage Health and Safety (H&S) in the workplace. Callon formalized the Safety and Environmental
Policy to provide some guidance that employees can take to protect themselves in working (Callon 2019).

In the same pathway, Woodside promulgated Golden Safety Rules to resolve high-risk injuries for their
workers (Woodside 2020). Secondly, employees entering two of these companies will be providing fully
with insurance services related to their health and shared about the company’s safety policy. Especially,
in the COVID-19 period, both companies executed COVID-19 screening, social distancing, and other
wellbeing and safety conventions.

b. Differences

However, each corporation has its concerns. Callon Petroleum concentrates on developing team and
individual capability by training and providing them professional knowledge because they recognize that
their employees are key for their success (Appendix 2). Callon consistently offers in-house training
programs for the workforce and invests in new potential managers by sponsoring them for additional
courses in renowned universities and another conspicuous administration advancement (Callon 2019).
In contrast, Woodside puts more effort into supporting community development (Woodside 2020).
Woodside focuses on addressing the local needs, these activities occur annually. They organize charity
trips to help the community and education system. For example, they also collaborate with the locality to
support at-risk children going to school with the activity “Back to school” as well as giving gifts for
special occasions such as Christmas and Halloween (Woodside 2019).

IV. Why are they reporting it?

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ACCT2105_ Group 12_ Team 5_ Understanding Sustainability Reporting Practice

The sustainability report is a useful method because it allows keeping motivating and focusing on
achieving companies’ goals which guarantee their committee of green energy improvement, healthy and
safe performance (Nitti 2020). By releasing sustainability information, both Callon and Woodside can
upgrade reputation, enhance credibility, reinforce brand names, acquire the stakeholders' beliefs, and
consolidate their position in the marketplace (Chandan 2021). In the industry of Callon and Woodside,

individuals and organizations around the world need to comprehend the oil and gas area's developing
business and converse with organizations about the effect of their activities on the society and
environment, as well as trade-offs (IPIECA 2020). To satisfy these requests, sustainability reports are
good choices.

In this case, Callon’s business related to the Oil and Gas industry that their business processes might
cause environmental pollution and the high labor risk. Because of Environmental Protection Agency
regulation (EPA) in the U.S, they must provide exploration information, effects to the environment and
society, report any risks or shows identified with their activities, and efficient strategies to solve problems
through sustainability reports (Allison & Mandler 2018). Similarly, under Australian legislation,
Woodside has to show their responsibility for protecting human rights and the environment when running
the business, according to the Australian Securities and Investments Commission, Environment
Protection and Biodiversity Conservation Act (Department of the Environment, Water, Heritage, and the
Arts, 2009). By using the sustainability reports, they can transfer a large amount of information to the
stakeholders widely.

V. Schneider Electric Vietnam

SEV empowers all to capitalize on their energy and resources everywhere, for everyone for ensuring
"Life is On" based on 6 commitments (Felicitas 2021). SEV conducts the “Access to Energy program”,
which will focus on providing solar-used equipment and vocational training for energy management to
the underprivileged.

Nowadays, sustainability reporting has become a common trend in the business world because these
reports assist in increasing great transparency and accounting stakeholders' expectations (Nitti 2020).
Furthermore, most lecturers usually rely on the GRI framework to report information. Similarly, SEV’s

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ACCT2105_ Group 12_ Team 5_ Understanding Sustainability Reporting Practice

report is based on GRI standards to disclose information to the public and build trust in them. Improving
the Sustainability report is extremely important since it helps the GRI to advance and acquire traction, or
construct superior alternatives.
Despite being in different industries, SEV, Callon, and Woodside still have some commons in
sustainability activities. As same as the two companies above, SEV not only concentrated on their internal
well-being but also conducted Tomorrow Rising program to help communities affected by the COVID-19
epidemic. Additionally, their top leaders and managers dedicated a part of their bonus to charity
foundations for COVID-19 protestation.

VI. Conclusion

Overall, both companies have produced useful sustainability reports that show how they intend to meet
their own sustainability objectives and the effect of their action on society and environment. Callon
petroleum is mainly focuses on human development and minimizing clean water pollution while
Woodside petroleum do a better in helping community and education system with charity programs and
they are also proceeded to exploring the environmentally friendly energy sources. In addition, Schneider
Electric Vietnam has also concentrated on enhancing environmental quality and helping rural people who
is not be able to access and control electricity. Furthermore, due to different rules and regulations, the way
they create sustainability report is affected but still based on GRI standards.

VII. References

Ehnert, I Parsha, S, Roper, I, Wagner, M & Muller-Camen 2016, ‘Reporting on Sustainability and HRM:
a Comparative Study of Sustainability Practices by the World’s Largest Companies’,The International

Journal of Human Resource Management,vol. 27, no. 1, pp. 88-108

Callon Petroleum 2019,Sustainability report 2019,company report, Callon Petroleum, viewed 15 April
2021,

< /> Report-Final.pdf>

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ACCT2105_ Group 12_ Team 5_ Understanding Sustainability Reporting Practice

Callon Petroleum 2021, Sustainability, company report, Callon Petroleum, viewed 13 April 2021,
< />
Callon Petroleum Ltd., 2020, Callon Petroleum Company Releases Inaugural 2019 Sustainability Report,
Cision PR Newwire, viewed 13 April 2021, < /> petroleum-company-releases-inaugural-2019-sustainability-report-301139204.html>

Woodside Petroleum 2018, Sustainable Development Report, company report, Woodside Petroleum,
viewed 13 April 2021,
(static-pdfs)/2018-sustainable-development-report/sustainable-development-report-2018.pdf?
sfvrsn=55694111_21>

Woodside Petroleum 2019,Sustainable developmentreport 2019, company report, Woodside Petroleum,
viewed15 April 2021,

report/sustainable-development-report-2019.pdf?sfvrsn=73cea616_14>

Woodside Petroleum 2020Sustainable development report 2020, company report, Woodside Petroleum,
viewed 15 April 2021,

sustainable-development-report/sustainable-development-report-2020.pdf?

fbclid=IwAR2UQXgdL_qUwPVjZV4ok9ZCl_yn0xeSC1YtRvMuj2Hk8_80uHxHjTBOSLE>

IPIECA 2020, Oil spill monitoring and sampling, IPIECA, viewed 13 April 2021,
< /> Nitti, C 2020, Why sustainability reporting is important for private and public organizations?,

Arcolab.org, blog post, 1 June, viewed 14 April 2021,
< /> Chandan, S 2021, Why Sustainability Reporting Is an Important Risk Management Tool for Any

Business?, Take Green Steps, blog, viewed 15 April 2021,

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ACCT2105_ Group 12_ Team 5_ Understanding Sustainability Reporting Practice

< />business/#:~:text=Sustainability%20Reporting%20as%20an%20important,the%20environment%20where

%20they%20operate >
IPIECA 2020, Sustainability reporting guidance for the oil and gas industry, industry report, IPIECA,

viewed 15 April 2021,
< />
guidance-2020.pdf?la=en&hash=735EC2C7401AF7BA703E67D20D1F762C977BDF12>
Allison, E & Mandler, B 2018, U.S. Regulation of Oil and Gas Operations _Federal and state regulation
of exploration, production, transportation, and more, American Geosciences Institute, viewed 15 April
2021, < /> Department of the Environment, Water, Heritage and the Arts 2009, Local government and Australian

environment law, Australian Government, viewed 15 April 2021,
< /> law#:~:text=The%20Environment%20Protection%20and%20Biodiversity%20Conservation%20Act
%201999%20(%20EPBC%20Act,of%20the%20Australian%20environment%20minister.>
Felicitas, H 2021, 6 long-term commitments in Sustainability Impact of Schneider Electric Vietnam,

Schneider Electric Vietnam, viewed 15 April 2021,
< />
VIII. Appendices

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ACCT2105_ Group 12_ Team 5_ Understanding Sustainability Reporting Practice

Figure 1: The screenshot of information about the strategies the Woodside Petroleum Company
applies to decrease the fuel utilization (Woodside 2019)

Figure 2: The screenshot of information about how Callon Petroleum Company invest in
developing their workforce (Callon 2019)
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ACCT2105_ Group 12_ Team 5_ Understanding Sustainability Reporting Practice

Figure 3: The screenshot of 6 long-term commitments in Sustainability Impact of Schneider Electric
Vietnam (Felicitas 2021)

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