Case study: How Premier creates economic value for its stakeholders
Premier is an international oil and gas exploration and production company, employing 776 people globally and organised into four business units – UK, Indonesia, Vietnam and the Falkland Islands. Premier believes that it can most effectively generate longer-term value for its shareholders by operating in a way that also delivers lasting economic benefits to all its other stakeholders.
This case study is based on the 2020 Sustainability Report by Premier, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Consistently delivering value helps Premier to build strong relations with its business partners and host governments Tweet This!, enabling it to better access new business opportunities. In order to create economic value for its stakeholders Premier took action to:
- create economic value for business partners, employees, providers of capital and the government
- support communities
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With this case study you will see:
- Which are the most important impacts (material issues) Premier has identified;
- How Premier proceeded with stakeholder engagement, and
- What actions were taken by Premier to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020 Sustainability Report Premier identified a range of material issues, such as asset integrity and process safety, emergency preparedness and crisis management, energy transition and climate change, occupational health, safety and security. Among these, creating economic value for its stakeholders stands out as a key material issue for Premier.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Premier engages with:
To identify and prioritise material topics Premier engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Investors | · Annual reporting · Website · Direct engagement · Stakeholder engagement sessions |
| Employees | Employees: · Ongoing workplace engagement · ‘Town hall’ meetings · Direct dialogue · Engagement surveys · Staff forums · Performance reviews Contractor personnel: · Ongoing workplace engagement · ‘Town hall’ meetings · Engagement via contractor and supplier agencies · Contractual agreements Organised labour: · Regular scheduled meetings · Collective labour agreements |
| Business partners | Joint venture partners: · Direct engagement · Contractual agreements Contractors: · Direct engagement · Performance monitoring · Contractual agreements Customers: · Direct engagement · Vendor processes · Contractual agreements |
| Government | National governments: Joint dialogue, including through: · Oil & Gas UK (OGUK) · Oil & Gas Authority (OGA) · Department for Business, Energy & Industrial Strategy (BEIS) · British Independent Oil Exploration Companies (BRINDEX) · UK Oil Industry Taxation Committee (UKOITC) Direct dialogue, including with: · Falkland Islands Government (FIG) · Indonesian government · Vietnamese government Regulators: Direct dialogue, including with: · FIG Department of Mineral Resources (FIG DMR) · FIG Department of Health and Social Services (FIG DHSS) SKK Migas (Indonesia) · Oil and Gas Authority (OGA – UK) · Department for Business, Energy and Industrial Strategy (BEIS) · HM Revenue and Customs (HMRC) · Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) · Maritime & Coastguard Agency (MCA) · Secretary of State’s Representative (SOSRep) · Health and Safety Executive (HSE – UK) · PetroVietnam (Vietnam) · National Agency of Petroleum – ANP (Brazil) · Brazilian Institute of Environment and Renewable Natural Resources – IBAMA (Brazil) Joint dialogue, including through industry association AMEXHI and joint venture partner, with SENER and CNH, ASEA (Mexico) |
| Society | Civil society and Nongovernmental organisations (NGOs): Direct and indirect engagement (including via stakeholder engagement sessions) with: · IPIECA · UN Global Compact Network UK · Transparency International UK · Oil & Gas UK (OGUK) · Various NGOs in countries of operation · Falklands Conservation Local communities: Direct engagement (via local Community Relations teams and business unit managers) and development-focused community investment programmes |
What actions were taken by Premier to create economic value for its stakeholders?
In its 2020 Sustainability Report Premier reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for business partners, employees, providers of capital and the government
- Much of the value Premier creates is distributed throughout its host societies, directly supporting long-term socio-economic development. This includes distribution through:
- payments to business partners, including locally based contractors
- payments to Premier’s workforce, including wages and benefits paid to employees from its host countries
- payments to Premier’s providers of capital, including shareholder dividends and interest on debt
- payments to government, including corporate income taxes, royalties and other payments to Premier’s host governments
- Supporting communities
- Premier’s spending on community investment projects helps deliver sustainable social, economic and environmental benefits for local communities and their host governments. In 2020, Premier spent US$0.55m on community investment projects.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
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References:
This case study is based on published information by Premier, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
https://www.harbourenergy.com/media/xw1jwniw/2020-sustainability-report.pdf
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