MAA310 Accounting and society | Metcash Limited

Learning outcomes

LO 2 -  Determine contemporary accounting and business issues incorporating global perspectives.

LO4-  Justify, analyse and communicate financial and non-financial information to assist managers’ ethical and responsible decision making and reporting.

Description/ requirements

Background- Considering climate change as a foreseeable risk influencing companies across industries, the Australian Securities and Investment Commissions (ASIC) has exerted pressure on companies to disclose their management of climate risks in their operational and financial reports. Correspondingly, the Australian Securities Exchange (ASX) has proposed listed companies with material exposure to climate risk implement the recommendations of the Task Force on Climate Related Financial Disclosures (TCFD).

Required

The student is required to prepare a report where they have to assume as they are business consultant, who is report to the board of directors of the Metcash company. The company is one of the leading wholesale in Australia. It is the listed company.

You have been contracted to provide a report to Metcash Limited’s Board of Directors which will include several points discussed below:

• Assess, taking an agency theory lens, why climate-change-related risk disclosures matter to shareholders. (450 words)
• Measure, taking the managerial branch of stakeholder theory lens, explain why climate-change related risk disclosures matter to key stakeholders. Identify and discuss two key stakeholders. (450 words)
• Identify the three challenges which could be faced by the organisation in relation to climate change related risk.  (450 words)

You would have to consider the annual report of Metcash limited and identify that whether the company has provided with any climate related risk. Also provide recommendations for improvement.