Case study: How Endeavour creates economic value for its stakeholders
With a workforce of over 11,000, Endeavour is a leading global gold producer and the largest gold miner in West Africa. Endeavour is committed to the principles of responsible mining and delivering sustainable value to all its stakeholders Tweet This!, including its employees, contractors, suppliers and local communities.
This case study is based on the 2020 Sustainability Report by Endeavour, 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
Endeavour’s mining operations are powerful catalysts in the socio-economic development of its host countries and local communities and key contributors to its host countries’ wealth. In 2020, Endeavour generated $1.62 billion in revenue, and distributed $894 million in economic value. In order to create economic value for its stakeholders Endeavour took action to:
- create economic value for employees
- create economic value for governments
- support communities
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With this case study you will see:
- Which are the most important impacts (material issues) Endeavour has identified;
- How Endeavour proceeded with stakeholder engagement, and
- What actions were taken by Endeavour 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 Endeavour identified a range of material issues, such as hazardous chemical management, community engagement, health and safety, water stewardship. Among these, creating economic value for its stakeholders stands out as a key material issue for Endeavour.
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 Endeavour engages with:
| Stakeholder Group | Method of engagement |
| Employees
| · Safety briefings · Employee well-being programmes · Collective bargaining/contract negotiations · Performance reviews and appraisals · Training and development programmes · CEO and senior leadership townhall meetings · Employee communication channels · Whistleblower hotline · Policies and standards |
| Communities
| · Regular meetings with customary and religious authorities as well as other community groups · Participation in Environmental Social Impact Assessments (ESIA) · Public hearings and consultations · Grievance mechanisms · Resettlement committees · Local cultural and sporting events · Community health awareness campaigns · Mine site visits · Newspapers, radio, television and annual sustainability reports |
| Suppliers and contractors
| · Policies and standards · Supplier appraisal process · Supply contracts process · Meetings · Grievance mechanism · Relationship building by group and site level procurement teams · Safety meetings |
| Government and regulatory bodies
| · Meetings · Local subsidiaries Board meetings · Site visits and inspections · Hosting and attending Government and private sector meetings · Attending national and international mining conferences |
| Shareholders, investors and analysts | · Regulatory filings · Press releases · Annual and quarterly reports · Annual general meeting · Investor meetings · Conferences · Site visits · Website · Annual sustainability reports, and communications by email and telephone |
| Unions
| · Formal meetings with the unions · Safety briefings · Employee well-being programmes |
| Industry associations | · Formal meetings · Correspondence and events |
| Non-governmental organisations | · Meetings · Correspondence · Conferences · Corporate social responsibility (CSR) forums · Roundtables · Strategic partnerships |
| Media | · Press releases · Interviews · Regulatory filings · Presentations · Site visits · Social media channels · Annual sustainability reports |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Endeavour created and sent an online survey to internal and external stakeholders, asking them to rate topics on a 1-5 scale.
What actions were taken by Endeavour to create economic value for its stakeholders?
In its 2020 Sustainability Report Endeavour reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- Endeavour is committed to attracting and retaining top talent by providing a dynamic workplace that offers a range of experiences, career development opportunities, fair employment practices and in which all individuals are treated with dignity and respect. In 2020, Endeavour paid $114 million in employee wages and benefits.
- Creating economic value for governments
- In 2020, Endeavour paid $262 million to host governments in the form of taxes and royalties.
- Supporting communities
- In 2020, Endeavour spent $8 million in community investments and donations.
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 Endeavour, 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:
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