Case study: How Fincantieri creates economic value for its stakeholders
Fincantieri is one of the world’s largest shipbuilding groups, with over 230 years of history and more than 7,000 ships built. The creation of economic value is essential to ensure that Fincantieri Group is safeguarded over time and, therefore, its sustainability. Accordingly, in 2021, Fincantieri distributed a total economic value of €6.6 billion to suppliers, collaborators, lenders, Public Administration and the community.
This case study is based on the 2021 Sustainability Report by Fincantieri, 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.
Fincantieri’s sustainable business model is aimed at creating long-term value for everyone involved in its activities. Tweet This! In order to create economic value for its stakeholders Fincantieri took action to:
- create economic value for employees
- create economic value for suppliers
- create economic value for banking institutions
- create economic value for the state
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) Fincantieri has identified;
- How Fincantieri proceeded with stakeholder engagement, and
- What actions were taken by Fincantieri to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Sustainability Report Fincantieri identified a range of material issues, such as product quality and safety, climate change, health and safety in the workplace, environmental impact of products and services, development and safeguarding of human resources. Among these, creating economic value for its stakeholders stands out as a key material issue for Fincantieri.
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 Fincantieri engages with:
| Stakeholder Group | Method of engagement |
| Environment | · Direct contact with bodies and ad hoc working parties |
| Community | · Participation in working parties · Meetings with representatives from NGOs and non-profit organisations, civil society institutions and associations · Press conferences · Periodic meetings with schools and universities to discuss and develop topics for research · Internships |
| Suppliers and partners
| · Meetings with strategic suppliers · Dedicated audits at selected suppliers · Feedback questionnaires · Various activities related to health and safety topics |
| Labour unions
| · Meetings · Working parties/discussions and the establishment of appropriate joint bodies to address various topics with the labour unions on all levels |
| Financial community
| · Press releases · Periodic presentation of financial results · Conference calls · Shareholder meetings · Meetings with investors and analysts · One-to-one presentations · Road shows · Shipyard tours · E-mail address dedicated to Investor Relations for institutional investors and small shareholders |
| Customers | · The entire shipbuilding process calls for a continuous relationship between the project manager and the customer and their staff |
| Human resources | · Days dedicated to education · Individual performance reviews · Discussions with labour unions and employee representatives · Involvement in specific initiatives · Performance evaluation meetings · Courses · Various activities · E-learning related to health and safety topics |
| Institutions and public administration | · Direct contacts · Internet · Ad hoc working groups · Definition and development of common projects |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Fincantieri engaged with its stakeholders through a survey involving more than 7,000 people.
What actions were taken by Fincantieri to create economic value for its stakeholders?
In its 2021 Sustainability Report Fincantieri reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Fincantieri paid 1,085 million euros in personnel costs.
- Creating economic value for suppliers
- In 2021, Fincantieri paid 5,286 million euros to suppliers.
- Creating economic value for banking institutions
- In 2021, Fincantieri paid 183 million euros to banking institutions.
- Creating economic value for the state
- In 2021, Fincantieri paid 70 million euros in duties, taxes and other financial and legal fees.
- Creating economic value for communities
- In 2021, Fincantieri spent 3 million euros 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 Fincantieri, 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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