Case study: How Huhtamaki creates economic value for its stakeholders
Huhtamaki is a global leader in sustainable packaging solutions with a Nordic heritage of more than 100 years, operating in 38 countries and 114 locations. In 2021, the economic value generated by Huhtamaki was EUR 1,270 million, of which EUR 899 million was distributed to its stakeholders.
This case study is based on the 2021 Annual Report by Huhtamaki, 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
Huhtamaki wants to make a positive contribution to the world and is committed to generating sustainable value for all its stakeholders. Tweet This! In order to create economic value for its stakeholders Huhtamaki took action to:
- create economic value for employees
- create economic value for shareholders
- create economic value for the public sector
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With this case study you will see:
- Which are the most important impacts (material issues) Huhtamaki has identified;
- How Huhtamaki proceeded with stakeholder engagement, and
- What actions were taken by Huhtamaki 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 Huhtamaki identified a range of material issues, such as product safety, transition to a circular economy, occupational health and safety, human rights, materials management. Among these, creating economic value for its stakeholders stands out as a key material issue for Huhtamaki.
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 Huhtamaki engages with:
| Stakeholder Group |
| Customers |
| Suppliers |
| Employees and contingent workers |
| Shareholders |
| Investors |
| Consumers |
| Industry associations |
| Public authorities |
| Non-Governmental Organisations |
| Trade unions |
| Communities near manufacturing units |
| Media |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Huhtamaki engaged with its stakeholders through a survey among both internal and external stakeholders.
What actions were taken by Huhtamaki to create economic value for its stakeholders?
In its 2021 Annual Report Huhtamaki reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Huhtamaki spent EUR 710 million in personnel expenses.
- Creating economic value for shareholders
- In 2021, Huhtamaki paid EUR 96 million in dividends to shareholders.
- Creating economic value for the public sector
- Huhtamaki is committed to paying all taxes and complying with other related obligations according to local laws and regulations. In 2021, the Group’s tax expenses increased to EUR 60 million (EUR 53 million in 2020) and paid taxes amounted to EUR 83 million (EUR 45 million in 2020).
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 Huhtamaki, 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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