John Keells Holdings Plc

Case study
Corporate governance and
external reporting
 John Keells Holdings Plc case study

John Keells Holdings Plc (JKH) is a public limited liability company incorporated in 1979. Its ordinary shares are listed
on the Colombo Stock Exchange, with global depository receipts issued on the Luxemburg Stock Exchange. It is also the
first Sri Lankan company to be listed overseas.

The group operates in the transportation, leisure, property, consumer foods and retail, financial services and information
technology sectors. Just some of its brands include Cinnamon Hotels and Resorts, Elephant, John Keells Logistics,
Chaaya Hotels and Resorts. While its head office is located in Colombo, the group’s diversified companies are spread
around Sri Lanka, as well as the Maldives, India, Mauritius, Singapore and the United Arab Emirates. It also serves
markets in the UK and the USA through its varied businesses. Its net asset value as at 31 March 2009 was Rs. 45.58
billion, and the company was ranked first in LMD Sri Lanka’s Most Respected Entities 2008.

Corporate governance and external reporting

In 2009, John Keells Holdings Plc published its first stand alone sustainability report, This initiative and the
aligned with the Global Reporting Initiative (GRI) Framework. Its chairman, Susantha changes it entailed
Ratnayake, felt that there was a need to implement a more formal framework within have helped us in better
the organisation to address the rising demands of stakeholders. It was intended that integrating sustainability
this framework would deliver a much clearer external message illustrating actions within the group’s value
taken and commitments to proposed actions regarding the organisation’s wider chain.
economic, environmental and social corporate responsibilities.
Susantha Ratnayake
JKH formed a sustainability committee that would be responsible for leading their Chairman, 21 May 2009
group wide efforts, not only for improved reporting, but also for identifying emerging
issues and developing coherent and effective strategies and policies to address these
issues, as well as overseeing their implementation. These initiatives have been, and
will be, rolled out throughout the group by a project named ‘Change for the BEST -
Building an Equitable and Sustainable Tomorrow’.

A diagram illustrating the framework within which JKH operates is shown below, it
specifically highlights the responsibilities of internal roles like systems and finance, as
well as where consultants interface.

JKH Board

Group sustainability committee

Corporate
JKH SRF Group sustainability function
communication

• Group initiatives Sectors/SBU Sustainability (Area) task

Mapping and control, to review

• Group risk Sector Champion - Sector Heads force/committee

Policy to practice

• CIO 1. Identify stakeholders

• Group financial controller
• Certified internal auditors
Sustainabilty representative/co-ordinator 2. Determine materiality
(integration of sustainability at the sector 3. Define policy
level - minimum one for each sector) 4. Define goals/targets
GMC Monthly Review of 5. Sets KPI
1. Road map and implementation 6. Implementation
2. Identification of stakeholders issues 7. Review and monitoring
8. Recommend caop-ex
9. Pooling best practices
10. Operating risk review

Company/Function
Consultants Champion - CEO

Sustainability co-ordinator (integration of

sustainability at the sector level - minimum
one for each company)

Management committee monthly review of

1. Road map and implementation
2. Identification of stakeholder issues

Profit centres and function

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 John Keells Holdings Plc case study

The business has set up and trained task forces to plan and implement initiatives, It is my strong belief that
and uses four tools to manage its activities, such as formulating strategy and our renewed commitment
policy and reporting performance. These four tools are detailed below: to the highest levels of
corporate citizenship in all
1. Self assessment questionnaires. These are designed to ensure actions are being spheres of our daily work
carried out, and risk management procedures are being followed, specifically, will lead to a stronger John
risk assessment and the implementation of respective risk control measures. Keells brand, differentiated
2. Stakeholder engagement to identify stakeholder issues which may impact the products and services, better
stakeholder or the business. risk management, improved
3. ‘Benchmarking’ to identify gaps between current business practices and the efficiencies, reduced costs
most advantageous way of carrying out the business. and, most importantly,
contribute to our common
4. The Global Reporting Initiative (GRI - G3) framework to report in a consistent goals of protecting the
manner to stakeholders and analyse internal performance. environment for future
The scope of sustainability initiatives is shown below, alongside a diagram generations and achieving
showing the way the taskforce operates throughout the group. equitable social progress for
all. Never before has this
For more information on the sustainability journey for JKH, go to been the most important
www.Keells.com business imperative, as it is
today.

Susantha Ratnayake
Chairman, 21 May 2009

Sustainability initiative
Sustainability
taskforce

Group Sustainability
Executive committee
Committee
Environment Economic Labour and Occupational Products and Society
health
human rights services
and safety

Group
Task force
Operating
leaders
Committee

Packaging
Bio Human Non Food
and Labour
diversity rights food
recycling

Cluster Water/ Customer

Energy emission effluent
heads satisfaction
and waste
Vice Presidents,
Asst. Vice
Presidents,
Managers &
Asst Managers
Expert/
Resource teams
Integrating sustainability within the group’s value chain

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 John Keells Holdings Plc case study

Read CIMA’s new report and case studies from other organisations at www.cimaglobal.com/sustainability.

The report includes case studies from other organisations and looks at how management accountants, their skills
and their tools, can provide business intelligence to support strategy and influence decision making, driving their
organisations to mitigate and adapt to climate change.

If you are interested in sharing your own insights and experiences in this area, we would be delighted to hear from you.
Please email us at research@cimaglobal.com

978-1-85971-643-4 (pdf)

December 2009

Chartered Institute of
Management Accountants
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T. +44 (0)20 8849 2275

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