Learning Check

Often the organization will comment on control processes in their sustainability report.  These disclosures give the readers a sense of the rigor and reliability of the information in the report.  Royal Dutch Shell, a multinational energy company, discussed these controls in its sustainability report:

“The leads of our businesses and functions report to the Chief Executive at the end of each year on how they applied our Business Principles and Standards.  If they have not met requirements they must explain what they are doing to achieve this.”

“We consider environmental and social factors for any new project and carry out an integrated environmental, health and social impact assessment before we start work.”

How would you classify these types of controls?