Case study: How DPM creates economic value for its stakeholders
DPM is a Canadian-based international mining company engaged in the acquisition, exploration, development, mining and processing of precious metals. Unlocking resources and generating value to thrive and grow together highlights, for DPM, the imperative to transform the resources that it responsibly extracts from the earth into both a financial return for its investors and sustainable livelihoods for those in the communities in which it operates.
This case study is based on the 2020 Sustainability Report by DPM, 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
As a responsible mining company, DPM seeks to generate a net positive impact from its operations Tweet This!, achieving a complex balance between how value is generated, distributed and retained through the allocation of capital expenditures, employee wages and benefits, payments to government, community investments and payments to the providers of its capital. In order to create economic value for its stakeholders DPM took action to:
- create economic value for employees
- create economic value for the government
- create economic value for providers of capital
- support communities
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With this case study you will see:
- Which are the most important impacts (material issues) DPM has identified;
- How DPM proceeded with stakeholder engagement, and
- What actions were taken by DPM 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 DPM identified a range of material issues, such as community health and safety, transparency and reporting, contribution to local development, water management. Among these, creating economic value for its stakeholders stands out as a key material issue for DPM.
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 DPM engages with:
| Stakeholder Group |
| Employees |
| Investment Community |
| Governments |
| Local Communities |
| Civil Society |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics DPM engaged with its stakeholders through phone and/or personal interviews with national and local stakeholders in Bulgaria (70 complete responses) and Namibia (17 complete responses). Every stakeholder group was well represented by the survey.
What actions were taken by DPM to create economic value for its stakeholders?
In its 2020 Sustainability Report DPM reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- DPM seeks to create an environment for its employees to willingly give their best and reach their potential, while taking care of their health, safety and wellbeing. In 2020, DPM paid $93,920 for employee wages and benefits.
- Creating economic value for the government
- In 2020, DPM paid $44,530 to the government, including income, mining and other taxes, royalties, license fees, concession fees and land use payments.
- Creating economic value for providers of capital
- In 2020, DPM paid $13,933 to providers of capital, including interest paid on long-term debt outstanding.
- Supporting communities
- In 2020, DPM spent $4,571 in community investments.
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 DPM, 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://s27.q4cdn.com/486073686/files/doc_downloads/2021/11/03/Sustainability-Report-2020-ANNEXES_Preview.pdf
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