No Plan B for Climate Action as There is No Planet B
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Course
Advanced Management Accountancy (ACC3163M)
Institution
The University Of Lincoln
Book
Sustainability Reporting
The essay explores sustainability disclosure and reporting with reference to theoretical models, UN Sustainable Development Goals, UK aviation industry and the practices of two of the main players on the market - EasyJet and WizzAir.
Word count: 2,050 words
No Plan B for Climate Action as
There is No Planet B
Environmental management disclosure of airline companies
, Introduction
Sustainability continuously increases in importance and priority for business organisations during the
last decade. This is particularly valid for airline companies which are often accused to be main driver
of pollution and contributing significantly to climate change. As a response, the majority of airline
entities have adopted sustainability strategies which are regularly communicated to stakeholder
groups. The current report aims to explore the importance of sustainability reporting for UK aviation
industry and its link to accountancy. For this purpose, a wide variety of academic publications and
industry reports are reviewed and applied in the context of two companies – EasyJet and Wizz Air,
both of which constituents of FTSE250. The focus of the paper is set on analysis of environmental
management.
Sustainability disclosure
Sustainability paradigm is based on the assumption that balance needs to be achieved between
economic, social and environmental objectives for development and growth (ICAO, 2011). The main
aim of sustainable development is to increase the benefits arising from the consideration of all three
areas of concern by companies, as shown on the next figure.
Figure 1: Sustainability framework
Source: ICAO (2011)
Although the direct link between sustainability disclosure and financial performance is still debated
by scholars, the majority of public limited companies realise the importance of engaging in
sustainability practices, especially when they operate in industries associated with pollution, harm to
environment etc. Many business organisations reveal that sustainability strategies and their regular
disclosure to stakeholder groups is essential for achieving financial stability and improve
performance on the market. Sustainable development is defined differently by scholars but in
general it refers to the efforts made by a company to meet its current needs and address the ones of
different stakeholder groups without compromising the ability of future stakeholders to fulfil theirs
as well (AAA, 2016). Sustainability strategies are developed on the assumption that business
organisations have responsibilities going beyond maximising wealth and return of shareholders and
being profitable (AAA, 2016). This has urged the need of stakeholders to know more about corporate
efforts focused on the impact of the business on different parties (e.g. local community,
environment, employees etc.) (AAA, 2016). All these imposes the requirement for businesses to
measure, manage and disclose information regarding different aspects of environmental and social
performance in addition to financial reporting (AAA, 2016). This has contributed to the rise of
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