International Accounting Essay Example | Topics and Well Written Essays - 1500 words

International Accounting - Essay Example Burberry Group Plc. is a multinational company which operates its business in the apparel sector of the textile industry. It is headquartered at London, United Kingdom and was founded in the year 1856 (Yahoo Finance, 2012a). Hennes & Mauritz AB is headquartered at Stockholm, Sweden and was founded in the year 1947. It is also engaged in the business of running retail stores in Sweden and abroad and offers different types of products which mainly includes apparels, footwear, cosmetics, etc. (Yahoo Finance, 2012b). Comparison of environmental disclosures in the annual reports Annual reports of a company are meant for the shareholders and different other stakeholders to help them in their decision making process. According to GRI, every public company is required to present their sustainability report referring to various environmental disclosures in their annual reports. Sustainability reports serve for the purpose of making the public organizations follow practices which would ensure their accountability and responsibilities towards their stakeholders. According to G3 sustainability report guidelines the performance indicators are broadly classified into three categories namely, Environmental, Economic and Social (GRI, n. d.). Six different aspects of the environmental disclosures as mentioned in the G3 sustainability report related to Burberry and H&M has been discussed in details as given below: Materials There are two environmental performance indicators mentioned in the G3 sustainability report that are related to the materials aspect. One such indicator is the materials used by a company in percentage terms that are recycled as input materials. This type of indicator has been devised to measure the ability of the organization to utilize its recycled input materials. If we look at the 2011 annual report of Burberry it can be observed that it has indicated its total recycled raw materials waste which has been recycled in 2011. However it is indicated in absol ute terms as 148 tons of raw materials waste recycled in 2011 (Burberry, 2012). Next the 2011 annual report of H&M indicates that no such indicators have been mentioned. It only talks about the company’s commitment towards reducing wastes that are used in its various production processes. However no such absolute figures or percentage terms related to the amount of recycled waste materials utilized by the company has been disclosed in its annual report (H&M, 2012). Hence, it can be concluded that Burberry complied with the disclosure requirements related to the materials aspect of environmental disclosures but H&M did not comply with the same. Energy There are five environmental performance indicators mentioned in the G3 sustainability report that are related to the energy aspect. One such indicator is the initiatives taken up by an organization to result in increasing use of renewable sources of energy in an efficient manner to help in the reduction of the overall energy req uirements of the company. In accordance with this disclosure requirement the companies are required to report on their existing initiatives that helped for the cause of reducing the energy requirements of the major products produced by them. The 2011 annual report of Burberry indicates that the company has mentioned about some of