A 2017 Gallup Poll1 survey regarding Americans’ concerns about environmental issues revealed the following:

Given results of surveys like the one above, it shouldn’t be surprising that more and more business leaders are concerned with how their business is impacting the environment and increasingly want to demonstrate that they are being good stewards of the environment.

REQUIRED

[1] Go to the Global Reporting Initiative's (GRI) website and obtain and the GRI Sustainability Reporting Standards (try http://www.globalreporting.org/standards). 

[a] Read GRI 101 Foundation. What must an organization do to stated that its sustainability report was prepared in accordance with the GRI Standards? 

[b] Read GRI 101 Foundation. What are the major differences between the two "In Accordance" levels? 

[c] Read GRI 102 General Disclosures and GRI 103 Management Approach. What are the major categories of general disclosures and what type of information is included under each category of general disclosures? 

[d] Scan GRI 201 through GRI 419. What are the major categories for topic-specific standard disclosures and what type of information is included under each type of the topic-specific standard disclosures? 

[e] Read GRI Disclosure 102-56. The guidance for 102-56 identifies seven key elements for providing assurance on sustainability reports. What are the seven key elements? 

[2] Read AICPA Attestation Standard Sections 50 and 101 and go to UPS's sustainability report (try https:// www.sustainability.ups.com) to see examples of assurance reports on sustainability information. What types of engagements do the attestation standards cover? What level of assurance is allowed with the attestation standards? How do the eleven generally accepted attestation standards compare to the seven elements for providing assurance on sustainability reports as outlined in GRI Disclosure 102-56? 

[3] Read International Standard on Assurance Engagements (ISAE) 3000. What types of engagements does ISAE 3000 cover? Would ISAE 3000 allow accountants to provide assurance on an organization’s sustainability report? Explain your answer. What level of assurance is allowed with ISAE 3000? How do requirements for performing an assurance engagement using ISAE 3000 compare to the requirements for performing an assurance engagement using the AICPA Attestation Standards? How do requirements for performing an assurance engagement using ISAE 3000 compare to the requirements for performing an audit of financial statements? How do the requirements for performing an assurance engagement using ISAE 3000 compare to the seven elements for providing assurance on sustainability reports as outlined in GRI Disclosure 102-56? 

[4] Based on what you have read related to sustainability reporting, what do you believe are the possible advantages and disadvantages associated with issuing a sustainability report to external stakeholders? What do you believe are the major reasons why some business organizations are reluctant to issue sustainability reports to external stakeholders?

[5] Based on what you have read related to sustainability reporting, what do you believe are the possible advantages and disadvantages associated with having a third party provide assurance on a business organization’s sustainability report? What do you believe are the major reasons why some business organizations are reluctant to have third party assurance provided on their sustainability report? What are the key challenges for accountants who might be asked to issue an attestation report on a business organization’s sustainability report? 

[6] The 2015 KPMG survey report7 that the majority of the world's largest 250 global companies that obtain external assurance on sustainability information obtain that external assurance from accounting firms. What are the advantages of having accounting firms as compared to other third party groups, like engineering or consulting firms providing assurance services on corporate sustainability reports? What are the advantages of having non-accounting firms like engineering or consulting firms, as compared to accounting firms providing assurance services on corporate sustainability reports? 

[7] Go to Caterpillar Inc.'s website (try http://www.caterpillar.com) to locate Caterpillar’s latest sustainability report. What aspect of sustainability reporting seems to be an important aspect for Caterpillar? Explain your answer. Now go to Caterpillar Inc.'s website to locate Caterpillar’s latest 10-K report. How consistent is the business strategy discussed in the 10-K to the sustainability strategy discussed in the sustainability report? How well does the sustainability report connect to financial information reported in the 10-K report? Do these two reports provide information on how sustainability is embedded into management processes such as human resources, purchasing, finance, etc.? Explain your answers. 

[8] The 2015 KPMG survey report8 reveals that approximately 11 percent of companies issuing sustainability reports issue integrated reports. An integrated report combines in one report information on economic, social, and environmental performance. Go to the International Integrated Reporting Council (IIRC) website (try http://integratedreporting.org/resources/). Based on information provided, what are the advantages and disadvantages of a business organization issuing an integrated report instead of issuing a separate report for financial performance and sustainability performance?

Transcribed Image Text:

Tell me if you personally worry about this problem a great deal, fair amount, only a little or not at all? Pollution of drinking water Pollution of rivers, lake and reservoirs Air pollution Global warming or climate change The loss of tropical rain forests Extinction of plant and animal species 2017 2015 Worry Great Deal Worry Great Deal 63% 55% 57% 47% 47% 38% 45% 44% 44% 32% 33% 36%