Case study: How OceanaGold creates economic value for its stakeholders
OceanaGold is a multinational gold producer committed to the highest standards of technical, environmental and social performance. OceanaGold’s focus is on making long-term decisions, in line with its purpose, vision and values, while delivering consistent positive results and long-term value to all its stakeholders.
This case study is based on the 2020 Sustainability Report by OceanaGold, 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
OceanaGold’s vision is to be a resilient and dynamic gold miner, trusted to deliver enduring value to every stakeholder Tweet This! through innovation, performance and sustainable growth. In order to create economic value for its stakeholders OceanaGold took action to:
- create economic value for employees
- create economic value for suppliers
- create economic value for governments
- create economic value for capital providers
- support communities
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With this case study you will see:
- Which are the most important impacts (material issues) OceanaGold has identified;
- How OceanaGold proceeded with stakeholder engagement, and
- What actions were taken by OceanaGold 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 OceanaGold identified a range of material issues, such as market presence, emissions, labour-management relations, closure planning, occupational health and safety. Among these, creating economic value for its stakeholders stands out as a key material issue for OceanaGold.
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 OceanaGold engages with:
To identify and prioritise material topics OceanaGold engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Academics, researchers, expert reviewers, think tanks
| · Direct engagement · Conferences, events and forums · Corporate reporting and publications · Company website and social media · Site visits |
| Advisory groups, consultants, business partners
| · Direct engagement · Paid contracts · Technical reports · Corporate reporting and publications · Company website and social media · Site visits |
| Analysts (financial and ESG)
| · Direct engagement · Conferences, events and forums · Corporate reporting and publications · Company website and social media · Site visits · Virtual and in-person roadshows |
| Customers
| · Direct engagement · Corporate reporting and publications · Company website and social media · Site visits · Virtual and in-person roadshows |
| Direct and indirect suppliers
| · Direct engagement · Paid contracts and onboarding · Technical reports · Corporate reporting and publications · Internal communication collateral · Company website and social media · Site visits |
| Employees and contractors
| · Direct engagement · Onboarding · Technical reports · Corporate reporting and publications · Internal communication collateral · Company website and social media |
| Governments (national, regional and local) and regulators
| · Direct engagement · Regulatory reporting · Formal submissions · Conferences, events and forums · Corporate reporting and publications · Company website and social media · Site visits |
| Host communities and indigenous groups
| · Direct engagement · Formal and informal forums · Representative groups · Events Information centres · Company surveys · Social and infrastructure investment programmes · Donations and sponsorships · Corporate reporting and publications · Company website · Site visits |
| Industry associations and peers, standards organisations
| · Direct engagement · Conferences, events and forums · Corporate reporting and publications · Company website and social media · Site visits |
| Investors (institutional and retail)
| · Direct engagement · Conferences, events and forums · Corporate reporting and publications · Company website and social media · Site visits · Virtual and in-person roadshows |
| Labour unions
| · Direct engagement · Corporate reporting and publications · Company website and social media · Site visits |
| Media
| · Direct engagement · Conferences, events and forums · Corporate reporting and publications · Media releases and briefings · Company website and social media · Site visits |
| Multilateral agencies, civil society and advocacy groups, NGOs | · Direct engagement · Conferences, events and forums · Corporate reporting and publications · Company website and social media · Site visits |
What actions were taken by OceanaGold to create economic value for its stakeholders?
In its 2020 Sustainability Report OceanaGold reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2020, the economic value of wages and benefits distributed to OceanaGold employees reached US$135.8 million.
- Creating economic value for suppliers
- In 2020, OceanaGold’s total economic contribution distributed to local, national and international suppliers was US$488.4 million.
- Creating economic value for governments
- In 2020, OceanaGold’s payments to governments reached US$37,1 million.
- Creating economic value for capital providers
- In 2020, OceanaGold paid US$33 million to capital providers.
- Supporting communities
- In 2020, OceanaGold invested US$4 million in social programmes and local infrastructure in line with priorities identified by host communities and governments. These programmes focus on local enterprise development and access to quality education, training and health care.
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 OceanaGold, 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://oceanagold.com/sustainability/sustainability-report/
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