WESFARMERS – Application of EMA 1

WESFARMERS – Application of EMA

WESFARMERS – Application of EMA


Wesfarmers has over the recent past, witnessed massive growth and expansion in its products and services. This has made it to become one of the largest public companies in Australia. Its continued rendering of services to the public has also made it to become one of the targets retailers in the whole of Australia. The growth can be witnessed by the fact that it is the largest private employer in the whole of Australia with more than 205000 employees working in the company. The company deals with a wide variety of items. They range from wool, livestock, grain and fruit, insurance, oil refineries and other many activities. The company has therefore put into full use the aspect of diversification of its production line. Through this, the profitability that it makes originates from many different sources. This all works for the better of the company.


The company in its undertaking of its responsibilities is divided into several departments and divisions. Coles Group is one of the units of Wesfarmers. This is since the2nd of July the year 20007 when the retail giant Wesfarmers acquired it. The business was acquired at an amount of A$ 22 billion. The purchase went to the history books as it was and still is, the largest successful takeover in the history of the Australian Corporate industry. After the purchase, full control over the company was in the month of November 23rd the same year. Coles is also a multidepartment unit. This is because it deals with such services as supermarkets, liquor, fuel and other convenience stores operations in the whole of the country. Numerically, the company has a total of 756 full service supermarkets, 810 liquor outlets, 92 hotels and 636 fuel and convenience stores nationwide. This is indicative of the strength that it holds in the market. It on its part employs a total 105,000 staff.

Wesfarmers has sought to put into full use the environmental management accounting techniques when dealing with the operations with Coles. This is through all the operations that they both undertake and that aid at the seeing to it that the businesses thrive under their capacities. Through this therefore, the Coles Group under the stewardship of Wesfarmers has applied all the environmental management accounting techniques to foster its operations. This has been to the better of not only the companies, but also the society.

Environmental management accounting deals with the generation and the analysis of both the financial and the non-financial information in order to support the internal environmental management processes. This is through the development of policies and principles that ensure that there is the proper identification and allocation of environment related costs. Wesfarmers has applied the principles of EMA in several areas of the Coles Group. They include the product pricing, the calculation of the costs, the savings of he environmental costs and in budgeting. All this is in an effort to see to it that there is utmost control over the environmental framework and processes.

The first aspect of environmental management that has been put into full use is the cost reduction policy. This has been mostly through the seeking of the application and use of renewable sources of energy. Through the use of renewable energy, the costs that are incurred in the processes of the company are reduced. These therefore further results to a reduction in the overall expenditure of the company and in turn increase in the profits that are made by the company. Another strategy that has been put into full use by the company is the use of recycling techniques in their products. The use of recyclable products such as the renewable energy results to a reduction in the overall costs that are incurred in the services of the company. This is therefore for the better good of the company. Cost reduction is one of the goals of engaging in EMA and the use of the processes results to the further reductions.

Another step that is put in place by the company in the adhering to EMA is the ensuring of the use of corporate social responsibility in the undertakings. This is through the business giving back to the society in which it is located. This aids in the creation of a fondness to the business. The fondness results to the creation of a brand of loyal customers for the company. Loyal customers ensure that the company makes adequate returns from its undertakings through the seeing to it that there are adequate revenues from the sales that are made. This is therefore to the better of the company. The reduction in the levels of the pollution that originates from the company is also one way, which the company becomes socially responsible. This is because through this, there is the development of a harmonious coexistence between the members of the public and the company. This is further on for the better of the company as the public supports it in its bid.

The process of change and the application of EMA has been faced with several challenges. Some of the challenges include the lack of the adequate and the relevant framework to ensure that all the processes are fully implemented. The lack of the required resources has also been a challenge in the continuous management and maintenance of the Environmental Management Accounting framework. There however has been the implementation of various measures to eliminate the deficiencies present. Through this, it will operate for the better of the company.


In conclusion, the company Wesfarmers has played a major role in the seeing to it that there are adequate measures in place to enhance the efficiency and the application of the EMA techniques. This is through their application in the units, departments and divisions such as Coles Group. Through this, there are benefits that are derived which are to the better of the company. Some of the benefits that have been derived from this include the reduction in the costs that are incurred in the services that are rendered. Another benefit is the increase in the revenues due to the business relationships with the customers and people from the society. There is also the benefit of improvement in efficiencies due to use of such things as the renewable materials.


Wesfarmers, 2016, Sustainability Reporting, Retrieved on 25th April 2016, from;