Treasury Wine Estates' Commitment to Integrate Sustainability Strategies

Assignment Cover Page ID Number

Student Name

Institution

Unit

ASSESSMENT

Due

Submitted

Word Count

EXECUTIVE SUMMARY

Treasury Wine Estates, one of the biggest wine producers in the world, has made the decision to begin publishing on sustainability. The corporation is already active in a number of initiatives and projects relating to corporate sustainability, but a new strategy will be used to determine how deeply sustainability solutions are ingrained in the company's everyday operations and organizational values.

In this report, I'll start by outlining how the sustainability and strategic goals of the organization were examined using the GRI 2 and the sustainability reporting methodology. After that, a strategy for the Balanced Scorecard's Strategic Initiative will be determined, and the scorecard will be drafted. I will demonstrate an executive comprehension of accounting concepts and an analysis of an ethical Scenario in the final section of the essay.

Table of Contents

Executive Summary .........................................................................................1

Introduction........................................................................................................3

Part 1- Critical Analysis …………………………………………………………….4

Overview of TWE’s operation …………………………………………….4

Four key areas covered by GRI standards ………………………………4

Comparison of TWE and Accolade wines ………………………………..5

Evaluation of widespread compliance ……………………………………6.

Part 2- Strategic Initiative ……………………………………………………………7

Part C- Ethical Scenario ……………………………………………………………..10

Conclusion .......................................................................................................... 12

References..............................................................................................................13

INRODUCTION

One of the biggest wine enterprises in the world, Treasury Wine Estates (TWE), employs more than 3500 people on four different continents and conducts business globally. The business relies on a vertically integrated operations model and prioritizes three activities: grape procurement, wine production, and brand-led marketing (tweglogbal.com, n.d).

TWE is adopting a variety of strategies and projects under the aegis of its Corporate Responsibility program since it, like the majority of global businesses, is coming under increased pressure from a number of stakeholders to conduct business in a responsible and responsible manner.

The requirement to incorporate sustainability components into the company's strategy, however, necessitates a more detailed approach where important drivers must be recognized along with their impact on the company's strategy, day-to-day operations, and corporate culture (Butler et al., 2011).

The wine company sector faces a number of sustainability-related challenges, including environmental ones (such as resource extraction, pesticide use, and soil pollution) and social ones (such as characteristics associated with drunk driving and difficult working conditions in vineyards), for which TWE is also responsible (Jackson, 2015).

Sustainability components must be incorporated into the complete value chain of production due to the company's very complicated business activities, which span everything from product distribution and advertising to farming methods in the company's vineyards. Value-adding markers can only be found and actions that have a causal impact on the entire company strategy are undertaken by using a "cradle to grave" approach and evaluating the entire grape life cycle (De Benedetto, Klemes, 2009).

I will first give an overview of the environmental and social effects of TWE operations in the subsequent chapters, as well as identify and explain the major GRI disclosures that are most likely to be important to stakeholders.

The corporation will then use a new approach, the Sustainability Balanced Scorecard, to discover drivers that will allow for deeper comprehension and integration of sustainability-related measures into the business strategy.

PART A- CRITICAL ANALYSIS

The key disclosure is a financial reporting tool that provides information about a company’s key financial and operational metrics. It is typically used by stakeholders such as investors, analysts, and creditors to make informed decisions about the company.

In the case of Treasury Wine Estates, the key disclosure can be a useful decision-making tool for stakeholders because it provides a broad range of information about the company’s financial performance, operations, and outlook. This can help stakeholders to understand the company’s financial position, assess its risk profile, and make informed decisions about whether to invest in, lend to, or do business with the company.

The key disclosure can also be useful for Treasury Wine Estates stakeholders because it allows them to compare the company’s performance and financial position to that of their competitors. This can help stakeholders to assess Treasury Wines Estates' competitive position and identify any potential strengths and weaknesses relative to its peers.

An overview of the environmental and social impacts of TWE’s Operations

Treasury Wine Estates is a global wine company that operates vineyards, wineries, and distribution centers in a number of countries around the world. As with any large-scale agricultural operation, the company’s activities can have both positive and negative impacts on the environment and local communities. The environmental and social impacts of the TWE’s operations vary depending on the specific location and practices of each vineyard and winery.

In general, the production of wine has both positive and negative impacts on the environment. On the positive side, wine production can have some environmental benefits. For instance, vineyards can serve as a habitat for various wildlife, including birds, insects, and small mammals. In addition, well-managed vineyards can help to conserve water and reduce erosion by controlling runoff and promoting the use of natural fertilizers.

However, wine production can also have negative impacts on the environment. For example, the use of pesticides and other chemicals in vineyard management can harm the natural ecosystem and may contribute to air and water pollution. In addition, the transportation of wine and wine-making materials can generate greenhouse gas emissions, which contribute to climate change.

In terms of social impacts, wine production can bring economic benefits to local communities through employment and tourism. However, the expansion of vineyards can also lead to land use conflicts, particularly if it involves the conversion of other agricultural land or natural habitats. In addition, the wine industry has faced criticism for its treatment of workers, including issues related to pay and working conditions.

Overall, the environmental and social impacts of Treasury Wines Estates depend on a variety of factors, including the specific practices and policies of the company and the local context in which it operates.