Year end: Dec 2016
Assessment date: Feb 2018

In many areas, AECI’s reporting embarks on reasonable transparency and disclosure, but fails to follow through with reasoning around the issues. Instead, reporting is cluttered with an elaborate set of monitoring and reporting protocols, which may impact on management’s ability to focus on key issues. Too much tick-box information ultimately obscures the underlying value drivers from view – both for AECI’s leadership, as well as for its stakeholders.

AECI has a lengthy report on its human resources, covering all the expected aspects, such as engagement, collective bargaining, dealing with retrenchments, post-retirement benefit obligations, etc. The emphasis is on detailed initiatives, but at the expense of deriving key insights that can drive long-term value from human capital. More is not always better.

On the other hand, both hazardous waste and land remediation receive due attention in the report and AECI appears sincere in its approach to comply with environmental regulations. Communications with its surrounding community and their interest groups also appears reasonable. Ultimately, AECI needs to apply its mind strategically to the key drivers of value for the business.

See the executive summary for a more complete overview of FarSight’s analysis for AECI. Buy our full report for detailed analysis and supporting discussion.