Case study: How Fingrid creates economic value for its stakeholders
Fingrid Oyj is Finland’s transmission system operator, owned by the State of Finland and Finnish pension and insurance companies. Fingrid’s mission is to secure a reliable supply of electricity for its customers and entire society cost effectively in all circumstances. Fingrid’s profits are channelled to the service and equipment suppliers, electricity market parties, personnel’s payroll, payments to financers, taxes and, finally, in the form of dividends to the Finnish owners.
This case study is based on the 2021 Annual Report by Fingrid, 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.
Through its business, Fingrid creates significant shared value for its customers, employees, shareholders and the whole of Finnish society. Tweet This! In order to create economic value for its stakeholders Fingrid took action to:
- create economic value for employees
- create economic value for suppliers
- create economic value for providers of capital
- create economic value for the government and communities
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With this case study you will see:
- Which are the most important impacts (material issues) Fingrid has identified;
- How Fingrid proceeded with stakeholder engagement, and
- What actions were taken by Fingrid to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Annual Report Fingrid identified a range of material issues, such as climate change, reliability and security of the electricity system, business ethics and compliance, occupational safety. Among these, creating economic value for its stakeholders stands out as a key material issue for Fingrid.
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 s 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 Fingrid engages with:
| Stakeholder Group |
| Owners and financers |
| Customers |
| Personnel |
| Policymakers |
| Authorities and NGOs |
| Contractors and service providers |
| Landowners and neighbours |
| Other partners |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Fingrid engaged with its stakeholders through surveys.
What actions were taken by Fingrid to create economic value for its stakeholders?
In its 2021 Annual Report Fingrid reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Fingrid paid € 39,363 thousand for personnel remuneration.
- Creating economic value for suppliers
- In 2021, Fingrid paid € 810,173 thousand to service and equipment suppliers and electricity market parties.
- Creating economic value for providers of capital
- In 2021, Fingrid paid € 147,009 thousand to providers of capital.
- Creating economic value for the government and communities
- In 2021, Fingrid paid € 33,273 thousand in taxes, contributions and sponsoring.
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 Fingrid, 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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