Case study: How Genting Plantations creates economic value for its stakeholders
Genting Plantations is one of Malaysia’s leading oil palm plantation companies, with interests extending to property development and biotechnology. Increasing Genting Plantations’ contribution towards society and the environment is a top priority, not least by generating sustainable value for all its stakeholders.
This case study is based on the 2021 Sustainability Report by Genting Plantations, 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.
Genting Plantations pursues, through its business operations, long-term value creation for all its stakeholders. Tweet This! In order to create economic value for its stakeholders Genting Plantations took action to:
- create economic value for employees
- create economic value for providers of capital
- create economic value for the government
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) Genting Plantations has identified;
- How Genting Plantations proceeded with stakeholder engagement, and
- What actions were taken by Genting Plantations 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 Genting Plantations identified a range of material issues, such as climate change, respecting human rights, responsible business, community relations and development. Among these, creating economic value for its stakeholders stands out as a key material issue for Genting Plantations.
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 Genting Plantations engages with:
To identify and prioritise material topics Genting Plantations engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Workforce | · Meetings, AGM, EGM, dialogue, townhall sessions, audit, inspections, annual appraisals · Telephone, messaging services, physical visits, emails · Notices, memorandum, campaigns, letters, assessments, surveys, forms |
| Suppliers & contractors | · Meetings, AGM, EGM, dialogue, townhall sessions, audit, inspections, annual appraisals · Telephone, messaging services, physical visits, emails · Notices, memorandum, campaigns, letters, assessments, surveys, forms |
| Smallholders & Plasma schemes
| · Meetings, AGM, EGM, dialogue, townhall sessions, audit, inspections, annual appraisals · Telephone, messaging services, physical visits, emails · Notices, memorandum, campaigns, letters, assessments, surveys, forms |
| Customers | · Meetings, AGM, EGM, dialogue, townhall sessions, audit, inspections, annual appraisals · Telephone, messaging services, physical visits, emails · Notices, memorandum, campaigns, letters, assessments, surveys, forms · Annual Report, Sustainability Report, website, press release, financial results |
| Government, trade associations & industry bodies | · Meetings, AGM, EGM, dialogue, townhall sessions, audit, inspections, annual appraisals · Telephone, messaging services, physical visits, emails · Notices, memorandum, campaigns, letters, assessments, surveys, forms · Annual Report, Sustainability Report, website, press release, financial results |
| Non-governmental organisations | · Meetings, AGM, EGM, dialogue, townhall sessions, audit, inspections, annual appraisals · Telephone, messaging services, physical visits, emails · Notices, memorandum, campaigns, letters, assessments, surveys, forms · Annual Report, Sustainability Report, website, press release, financial results |
| Local communities | · Meetings, AGM, EGM, dialogue, townhall sessions, audit, inspections, annual appraisals · Telephone, messaging services, physical visits, emails · Notices, memorandum, campaigns, letters, assessments, surveys, forms |
| Shareholders & investors | · Meetings, AGM, EGM, dialogue, townhall sessions, audit, inspections, annual appraisals · Telephone, messaging services, physical visits, emails · Notices, memorandum, campaigns, letters, assessments, surveys, forms · Annual Report, Sustainability Report, website, press release, financial results |
What actions were taken by Genting Plantations to create economic value for its stakeholders?
In its 2021 Sustainability Report Genting Plantations reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Genting Plantations paid RM 440.4 million for employee wages and benefits.
- Creating economic value for providers of capital
- In 2021, Genting Plantations paid RM 347.0 million to providers of capital.
- Creating economic value for the government
- In 2021, Genting Plantations paid RM 225.0 million in taxes and levies.
- Creating economic value for communities
- In 2021, Genting Plantations spent RM 4.0 million 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 Genting Plantations, 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://www.gentingplantations.com/wp-content/uploads/2022/04/GENP_SR2021_FINAL.pdf
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