Timberlines Ltd is a large forestry company which grows and harvests trees and transports them to its mills where the timber is pulped (an operation which uses a great deal of water and produces an unusable waste) for the manufacture of pulp based products. Demand for the pulp based products is declining worldwide, but demand for other timber products is stable. The companys forests are spread over numerous regions of the country and the majority are in remote areas. A key element of the location of forests for both re-planting (once trees have been harvested) and new forests is the level of local rainfall as forests are not irrigated. Timberlines Ltd employs a reasonably large work force at its forest locations ranging from unskilled (e.g. planters) to skilled logging machine operators all of whom are vital to the operation. It also has a large administration, financial, marketing and support staff of mixed gender and race at its head office.Up to now, the board of Timberlines adopted sound corporate governance in how it conducted its business and in how it reports to its stakeholders. Integrated sustainability reporting and disclosure is regarded as an important part of keeping stakeholders informed, building and maintaining relationships and promoting respect between the company and its stakeholders.

5.2 Briefly describe the characteristics of effective integrated reporting. 5.3 Discuss how frequently a company like Timberlines Ltd should report to its stakeholders on sustainability and other issues. 5.4 Identify five (5) stakeholders, other than the shareholders, with whom Timberlines Ltd should be building relationships and indicate briefly for each why you consider them to be stakeholders. 5.5 Based on the information given in the Timberlines scenario above, identify and briefly discuss the sustainability issues which you would expect the company to report on in its integrated report/ annual report.

Question 5 PART A: INTEGRATED REPORTING (25 MARKS) Timberlines Ltd is a large forestry company which grows and harvests trees and transports them to its mills where the timber is pulped (an operation which uses a great deal of water and produces an unusable waste) for the manufacture of pulp based products. Demand for the pulp based products is declining worldwide, but demand for other timber products is stable. The company's forests are spread over numerous regions of the country and the majority are in remote areas. A key element of the location of forests for both re-planting (once trees have been harvested) and new forests is the level of local rainfall as forests are not irrigated. Timberlines Ltd employs a reasonably large work force at its forest locations ranging from unskilled (e.g. planters) to skilled logging machine operators all of whom are vital to the operation. It also has a large administration, financial, marketing and support staff of mixed gender and race at its head office. Up to now, the board of Timberlines adopted sound corporate governance in how it conducted its business and in how it reports to its stakeholders. Integrated sustainability reporting and disclosure is regarded as an important part of keeping stakeholders informed, building and maintaining relationships and promoting respect between the company and its stakeholders. Page 19 of 21 (5) (2) YOU ARE REQUIRED TO: 5.1 Differentiate between "sustainability" and "integrated sustainability reporting (4) 5.2 Briefly describe the characteristics of effective integrated reporting. 5.3 Discuss how frequently a company like Timberlines Ltd should report to its stakeholders on sustainability and other issues. 5.4 Identify five (5) stakeholders, other than the shareholders, with whom Timberlines Ltd should be building relationships and indicate briefly for each why you consider them to be stakeholders. (5) 5.5 Based on the information given in the Timberline's scenario above, identify and briefly discuss the sustainability issues which you would expect the company to report on in its integrated report/annual report. (9)