Case study: How Nammo creates economic value for its stakeholders
Nammo is an international aerospace and defense company headquartered in Norway. With more than 2,700 employees across 28 production sites and five sales offices in 12 countries, Nammo is today one of the world’s leading providers of specialty ammunition and rocket motors for both military and civilian customers. Creating sustainable value for all its stakeholders, is a key priority for Nammo. Tweet This!
This case study is based on the 2020 Annual and Sustainability Report by Nammo, 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
As a responsible company, Nammo seeks to generate shared value for its employees, shareholders and other stakeholders. In order to create economic value for its stakeholders Nammo took action to:
- create economic value for employees
- create economic value for governments
- create economic value for shareholders
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With this case study you will see:
- Which are the most important impacts (material issues) Nammo has identified;
- How Nammo proceeded with stakeholder engagement, and
- What actions were taken by Nammo to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020 Annual and Sustainability Report Nammo identified a range of material issues, such as corporate governance efficiency, occupational health and safety, energy use, product safety, water management. Among these, creating economic value for its stakeholders stands out as a key material issue for Nammo.
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 Nammo engages with:
To identify and prioritise material topics Nammo engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Owners
| · Transparent organisation · Comprehensive reporting · Structured meeting schedule |
| Civil Society
| · Discussions with NGOs · Sponsorships · Follow-up on material topics |
| Customers
| · Structured follow-up meetings · Product stewardship · Export control |
| Suppliers
| · Supplier Conduct Principles · Supplier audits · Human rights |
| Employees
| · Regular staff survey · Frequent staff meetings · Appraisal dialogue · Leadership development programme · Code of Conduct |
What actions were taken by Nammo to create economic value for its stakeholders?
In its 2020 Annual and Sustainability Report Nammo reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2020, Nammo spent NOK 1 867 million in payroll expenses (including salaries, employment taxes, pension costs and other personnel costs).
- Creating economic value for governments
- In 2020, Nammo paid NOK 126 million in Income taxes.
- Creating economic value for shareholders
- In 2020, Nammo paid NOK 96 million in dividends to its shareholders.
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 Nammo, 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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