Financial and management professionals who are trying to more accurately measure sustainability performance can use this report to:

  • Show how the globally accepted practice for measuring sustainability performance produces materially erroneous measurements.
  • Discuss Bacardi Limited?s innovative performance metric that applies flexible budgeting concepts to the measurement of efficiency changes in sustainability variables such as electricity consumption, water consumption, and greenhouse gas emissions.
  • Examine the implementation of Bacardi Limited?s Corporate Responsibility Initiative, which includes its environmental sustainability performance.
  • Provide insights on how management accountants can make important contributions to the measurement and reporting of sustainability performance.
Key Insights:

Management accountants must be:

  • Aware of increasing stakeholder expectations for sustainability performance reporting and how the globally accepted practice is flawed.
  • Prepared to apply flexible budgeting concepts to calculate efficiency improvement for a sustainability key performance indicator (KPI), such as energy consumed, even when activity is measured by differing scales.
  • Familiar with how sustainability performance improvement can be integrated into a company?s management practices and information system.
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