Top corporate entities felicitated at ACCA Sustainability Reporting Awards

By Cassandra Mascarenhas

Rewarding the most transparent and accountable business entities in Sri Lanka’s corporate sector, the annual ACCA Sustainability Reporting Awards 2011 crowned John Keells Holdings, Aitken Spence Hotels Holdings and HDFC Bank as winners in the large, medium and small sectors respectively yesterday.

Janashakthi Insurance was also felicitated for conforming to reporting guidelines as a first time entrant.

The runners-up in the three categories were Diesel & Motor Engineering Company, Union Assurance and HNB Assurance and were recognised and rewarded for their exemplary reporting tenets conforming to GRI guidelines, which are increasingly being imbued into companies’ reporting processes around the world. People’s Leasing Company also gained a commendation in the medium category.

“In the current economic context, we need to focus on the responsibilities corporations have towards society at large. The present situation, instead being seen as an impediment, can be seen as a platform for those seeking to promote transparency and sustainability,” stated ACCA Sri Lanka President Nisreen Rehmanjee in her opening remarks at the awards ceremony held yesterday. “I look forward to seeing more organisations participating and stiffer competition next year.”

Addressing the vast audience present at the ceremony, which was held at the Cinnamon Grand, the Guest of Honour, ACCA Director for Emerging Markets Asia Lucia Real-Martin, noted that the global accountancy sector is increasingly facing a number of challenges to adapt to the fast pace of business today and the challenge at hand is the sustainability agenda.

The accountancy profession continues to lead in this and needs to ensure that future resources are well-managed in the present context as well as guaranteeing that the future generations will be able to meet their own needs. Corporations are now increasingly being subjected to greater scrutiny. There is also a growing demand for public information.

“What has grown out of this surge is the practice of sustainability reporting. It has moved from being the concern of a few to the talk of many. Sustainability is now high on the agenda of politicians, stakeholders, consumers and businesses but it is still a very difficult issue to deal with because of its complexity. Accountants are going to continue to be key parts of ensuring sustainable economies in the future. We should go from simply measuring to educating governments, businesses and people about acting in a transparent manner,”

she stated.  Real-Martin added that these awards show that there are already businesses in Sri Lanka that have taken bold and brilliant steps towards embracing the long-term view and adhering to these global standards.

“Importantly for Sri Lanka, sustainability puts businesses on an equal footing with those businesses that are on the cutting-edge in more mature economies and it is the winners and nominees here tonight who are setting the benchmark for other businesses in Sri Lanka by not taking short cuts and taking sustainability seriously,” she said.

Chief Guest at the ceremony, World Bank Country Director for Sri Lanka and Maldives Diarietou Gaye stated that the fact that the awards are a testimony that Sri Lanka understands that to induce change, businesses need to undergo dramatic innovation, noting that never before have capital markets been so interested in how businesses deal with climate issues, social change and governance.

 “The world we all know is facing the consequences of the financial crisis which have the impact of reducing employment and increasing poverty. Weak reporting and oversight has been a large cause of the crisis and there is now a general sense of distress about companies’ ability to self regulate. The sustainability movement is not a new concept. Companies have been adopting these policies for some time but today more than ever businesses need to adhere to them.”

She was pleased to note that Sri Lanka has been involved in sustainability reporting for about eight years and that corporate are now embracing sustainability in their business strategies and hoped to see it be a part of government systems in the future.

“Good corporate governance is a must today because of the complex and dynamic business environment we are operating in. There is no single good model of good governance, it is defined by the consequences of each company. Fundamentals however include the need for integrity amongst decision makers, an empowered and skilled board of directors, sound and controlled environments, a high level of transparency and disclosure as well as integrity in company reporting,” she added.

Gaye also called for businesses to harness the diverse potential of the youth in the North and East which would create a positive mindset among the people who still feel that they have yet not been included in the development of the country fresh impetus and urged businesses to be more women-focused and foster a culture of equal opportunities for women at all levels of organisations.

“The Global Compact Network Ceylon is greatly honoured to endorse these awards which are a very laudable initiative in transparency reporting in this country. I have felt that transparency in every sphere of activity is a very elusive and vague term, particularly in the business world, and we are proud that the ACCA Sri Lanka has taken the bold step in rewarding transparency in the corporate world in Sri Lanka,” said Dr. Rohan Fernando on behalf of the Global Compact Network Ceylon.

According to the observations contained within the judges’ report, the winning entries satisfied the ACCA judging criteria of completeness, credibility and communication. The John Keells Sustainability Report certified by GRI at B+, in addition to certifications from DNV, is one of a handful of reports disclosing its carbon footprint.

The judges also stated that Aitken Spence Hotel Holdings has adopted GRI G3 guidelines conforming to B level and has a declared intention of obtaining certification from GRI itself.  HDFC, which won two awards last year including that for first time entrant, continued to top the ranks in the small sector, gaining top positions this year too, due to its continued commitment to sustainability standards.

Pix by Upul Abayasekara