CSR seeks to build a sustainable environment by adopting Sustainability Reporting

About CSR Limited

CSR Limited (CSR, the Group, ASX: CSR) was founded in 1855 and today is a leading Australian building products brand in Australia and New Zealand. The Group employs 2800 people, serves 18,000 customers and operates out of 140 sites.

Why is Sustainability Reporting important to CSR?

Large scale companies like CSR operate increasingly in a sustainability-centred global economy where a company’s performance is judged in terms of its contribution to global environmental sustainability, in addition to its financial performance. Often referred to as ‘Corporate Social Responsibility’, businesses are expected to operate according to principles and policies that make a positive impact on society and the environment.

This is the importance and value of Sustainability Reporting in that it offers a measurable competitive advantage to businesses that adopt it and can publicise their Sustainability achievements. The competitive advantage lies in the enhanced level of support and willingness of key stakeholders to preference businesses that are effective in managing their impact on the environment, society, and the communities which they serve. Businesses that display a genuine commitment to goal setting and sound practices in the areas of environmental, social and governance (ESG) enjoy a greater level of engagement from government, financial capital providers like banks and institutional investors, other businesses, and consumers, compared to businesses that don’t adopt and display sound ESG practices.

What is the content of a Sustainability Report?

CSR’s Sustainability Report offers a comprehensive overview of the company’s initiatives relating to social, human, and environmental capital. It discloses environmental, social and governance (ESG) goals and reports on progress made toward achieving these objectives. It covers these key areas:

• Environmental – focusing on its ecological performance and its efforts to minimise its environmental impact.
• Social – encompassing relationship management with employees, suppliers, customers, and communities affected by CSR’s operations.
• Governance – governance goals revolving around analysing the CSR’s leadership, internal controls, audits, and overall corporate governance practices.

By addressing these elements in its Sustainability Report, CSR can effectively communicate its commitment to ESG goals, engage with stakeholders like governments, banking institutions, institutional shareholders and customers and consumers and demonstrate its commitment to creating positive social and environmental impacts.

The Sustainability Report must be prepared in accordance with Global Reporting Initiative Standards and must use reporting metrics consistent with the Sustainability Accounting Standards Board pronouncements and satisfy the Australian equivalent of the International Financial Reporting Standards Sustainability Disclosure Standards. The Report contents are subject to audit review.

Sustainability at CSR

In providing an overall performance review CSR discloses the Group’s sustainability metrics in its 2023 Sustainability Report in a similar fashion to its financial reporting and other key performance measures contained in the Annual Report. Some sustainability highlights within CSR’s 2023 Sustainability Report include:

• 3.7 percent reduction in water usage from 2020 baseline
• 12.9 percent reduction in emissions from 2020 baseline
• 8 percent reduction in energy consumption from 2020 baseline

In addition, CSR has committed to undertake Life Cycle Assessments (LCAs) and Environmental Product Declarations (EPDs) for CSR manufactured products accounting for 80 percent of turnover by 2030. LCAs track a product’s environmental impact from resource extraction through to disposal and examine the energy used and pollution caused. EPDs communicate the environmental performance or impact of products or materials over their lifetime.

The Future

The growing demand for transparency from brands and businesses is a necessity for companies like CSR to retain its customers, the support of financial capital providers, of government and employees.

Consumers, potential business partners and stakeholders are now more discerning than ever, placing great importance on the alignment of their values with the commitments of the brands and businesses they support. CSR comprehensively sets out its position on ethical, environmental, and social issues in its annual Sustainability Report because its content has the potential to impact the long-term security and success of the Group.

CSR’s Sustainability Report headline ‘Building solutions for a better future’ encapsulates the key tenet of sustainability and ensures that discerning consumers and business partners are more likely to support the CSR brand given its alignment with their values with respect to ethical, environmental, and social issues.