Corporate Sustainability Reports and ESG Evaluation of Loblaws

Corporate Sustainability Reports and ESG Evaluation of Loblaws
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Corporate Sustainability Reports and ESG Evaluation of Loblaws
This evaluation will focus on the current state of ESG reporting for Loblaws and its competitor, Sobeys, and the extent to which they are addressing sustainability issues to try to assess whether both Loblaws’ and Sobeys’ reporting is sufficiently transparent. The discussions are under the below headings.
1 Evaluation of the Company’s CSR Reporting
a. The company has adequate ESG disclosure, the reports having the strength that they are detailed, for instance, according to Loblaw Companies Limited (January 24, 2022), the reporting on Governance follows the Task-Force on Climate-Related Financial Disclosures, TCFD recommendation, like the reporting on responsible sourcing of its beef. The environment disclosure is also sufficient from the disclosed carbon emissions amounts, the targets, and timelines of cutting the emissions. Social reporting has also seen the disclosure of the President’s Choice Children’s Charity, a school meals program, and the promotion of higher education through the Loblaw Scholarship. The weakness of the reports is that they are produced annually with nil or minimal disclosure in the interim.
b. As a potential investor, the information in this report gives the needed disclosures for making a meaningful sustainable investment decision.
c. There are ESG issues that would be material considerations, for example, human capital and carbon emissions report.
d. Yes. This is achieved through engaging its shareholders and investor groups in assessing the climate-related risks and actions
e. Yes, Loblaws’ commitment to source its beef from The Canadian Roundtable for Sustainable Beef (CRSB), is a partnership with a target of reducing greenhouse gases by 33% by 2030.
f. The CSR report is useful in highlighting the Loblaw Scholarship, a higher education sponsorship program, and a school meals program under the President’s Choice Children’s Charity (Loblaw Companies Limited, November 30, 2021).
2. Evaluation of a key Competitor’s CSR Reporting.
a. Sobeys has sufficient ESG disclosures with its strengths in the information on the environment, in which it has committed to implement a number of energy efficiency initiatives e.g., upgrading its lighting and refrigerators, and a reduction in the use of energy, the same approach taken by Loblaws. On the social front, it has a Diversity, Equity & Inclusion Council that works towards the company’s commitment to these values, an equivalent of Loblaws’ engagement of its shareholders and investor groups in assessing its climate-related risks and actions. The two companies share the weakness that their reports are produced annually with nil or minimal disclosure in the interim.
b. As a potential investor, the information in this report, especially the GHG emissions metrics are sufficient disclosures for making a meaningful sustainable investment decision. Loblaws too has the same needed disclosures.
c. Yes, since the oversight of the ESG issues is carried out by the Corpora...