What are the key social and environmental issues that the company is facing? In other words, which information is certainly material to its main stakeholders?
The company is facing the challenge of the energy transition. The Paris agreement signed in 2016 is a real challenge for the company, which must now diversify its activities and can no longer rely solely on fossil fuels.
[...] They are discharging their own responsibility for these results, and we can take the example of Shell. In 2016, Shell more than doubled its net profit, so Eneco's argument only obscures poor results (Shell, Annual Report 2016). For Engie, a company with serious financial problems, the situation improved significantly in 2016, with a net loss rising from almost 4 billion euros to 400 million euros (Management report and annual consolidated financial statements, Engie, 2016). Investments also decreased in 2016 with only 122 million Euro between 346 million Euro in 2015. [...]
[...] The problem has been solved in a week, and the company is discharging its responsibility by saying that their only key learning is that they need to communicate better. Indeed, they add that Quby is working on a better in order to prevent future problems. According to the company, there is a high risk that the credit rating could decrease in next years but that would only come from a change in Standard and Poor's valuation method. We can be dubious about this explanation because the results of the company show some failures and probably remain the reason for a main one of a possible decline of the rating of the company by the rating agency. [...]
[...] In the end, the discard of responsibility of ENECO is very real in this report and is done in several ways. First of all, ENECO's relationship with the government is a key factor in understanding how the company tries to discard its responsibility. Indeed, it considers that its mission of public service is likely to alter its profitability, which is particularly different from other companies studied here like Shell for example. In addition, market trends are currently not favourable according to ENECO and can explain why the company is not responsible for certain elements of its financial balance sheet. [...]
[...] Discussion To what extent the company is discharging its duty of accountability through its report? Leader in Norwegian energy, we can see that the report of the company ENECO reflects mixed realities. First, the company insists on the energy transition and the efforts it is making to enter in this new area. Lot of information is available at this level, but the company does not clearly indicate what level of investment it plans to make in relation to the energy transition. [...]
[...] Five suggestions through which the company can increase the extent to which it discharges its duty of accountability through its reporting. The first suggestion is for ENECO to establish more clearly the adjacent responsibilities of the subcontractors. By establishing account-based accounting tables, this would allow the company to clarify its accounting. Investments made with subcontractors, and expenses that are attributable to ENECO could thus be better described. In addition, the company could explain in the introduction how ENECO interacts with its competitors and allies. [...]
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