Case study: How LTFH creates economic value for its stakeholders
Headquartered in Mumbai, India, L&T Finance Holdings (LTFH) is a financial solutions provider catering to the diverse needs of its customers across various sectors. LTFH seeks to deliver value for all its stakeholders over the long-term Tweet This!, committed to building a brighter and sustainable “collective future” together.
This case study is based on the 2020-21 Sustainability Report by LTFH, 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
LTFH aspires to be an admired and inspirational financial institution, creating sustainable value for all its stakeholders. In order to create economic value for its stakeholders LTFH took action to:
- create economic value for employees
- create economic value for providers of capital
- create economic value for governments
- create economic value for society
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With this case study you will see:
- Which are the most important impacts (material issues) LTFH has identified;
- How LTFH proceeded with stakeholder engagement, and
- What actions were taken by LTFH to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020-21 Sustainability Report LTFH identified a range of material issues, such as corporate governance, sustainable finance, human capital development, risk and crisis management. Among these, creating economic value for its stakeholders stands out as a key material issue for LTFH.
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 LTFH engages with:
To identify and prioritise material topics LTFH engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Employees | · Regular interactions · Training sessions · Performance appraisal · Annual reward and recognition programme · STAR awards · Medical counselling sessions · Employee volunteering programme – Boondein |
| Customers | · Regular business interactions · Customer satisfaction survey · Dealer meets and engagement activities · Press releases · Regular media interactions · Advertisements · Social media |
| Investors (Shareholders)
| · Annual general meetings · Quarterly and annual results · Investor and analyst quarterly meetings and con calls · Investor conferences/ Road shows · Annual report · Quarterly results communications through social media, LTFS website and press release |
| Regulatory bodies
| · Compliance reports · Industry Bodies |
| Communities
| · Baseline and Needs Assessment surveys · End-line surveys and Social Impact Assessments · Co-creating community engagement programme models · Capacity building workshops · Monitoring and Evaluation |
What actions were taken by LTFH to create economic value for its stakeholders?
In its 2020-21 Sustainability Report LTFH reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, LTFH paid ₹ 1,007.06 Cr. for employee wages and benefits.
- Creating economic value for providers of capital
- In 2021, LTFH paid ₹ 7,199.92 Cr. to providers of capital.
- Creating economic value for governments
- In 2021, LTFH paid ₹ 901.51 Cr. to governments.
- Creating economic value for society
- In 2021, LTFH paid ₹ 17.88 Cr. in CSR initiatives.
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 LTFH, 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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