Case study: How CEME creates economic value for its stakeholders
Founded in 1974 by Renzo Miotti, CEME has grown to be a world leader in the production of industrial solenoid valves and pumps. CEME pursues its mission by operating legally and fairly, creating added value for its shareholders and sustainable value for all its stakeholders Tweet This!, and fostering the growth of the company, its employees and collaborators.
This case study is based on the 2021 Sustainability Progress Report by CEME, 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
In 2021, the economic value distributed by CEME reached € 284,973 thousand. In order to create economic value for its stakeholders CEME 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) CEME has identified;
- How CEME proceeded with stakeholder engagement, and
- What actions were taken by CEME to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Sustainability Progress Report CEME identified a range of material issues, such as energy and GHG emissions, employees’ health and safety, waste management, people training and development. Among these, creating economic value for its stakeholders stands out as a key material issue for CEME.
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 CEME engages with:
To identify and prioritise material topics CEME engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Employees | · Continuous dialogue between the HR department and employees · Specific initiatives |
| Suppliers | · Continuous dialogue |
| Commercial partners
| · Continuous dialogue · Periodic meetings |
| Local communities
| · Continuous dialogue · Formal meetings and collaborations · Specific initiatives |
| Competitors | · None |
| Clients
| · Continuous dialogue · Periodic meetings · Cooperation on R&D of new products · Fairs |
| Investors
| · Formal meetings · Periodic management reports |
| Regulatory and certification bodies | · Formal meetings · Continuous dialogue |
| Unions
| · Continuous dialogue between the HR department and the Unions |
| Public administration | · Formal, continuous dialogue |
What actions were taken by CEME to create economic value for its stakeholders?
In its 2021 Sustainability Progress Report CEME reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, CEME paid € 24,690 thousand for employee wages and benefits.
- Creating economic value for providers of capital
- In 2021, CEME paid € 9,955 thousand to providers of capital.
- Creating economic value for the government
- In 2021, CEME paid € 13,410 thousand to the government.
- Creating economic value for communities
- In 2021, CEME spent € 2 thousand 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 CEME, 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.cemegroup.com/Content/images/certificati/CEME_Sustainability_Progress_Report_2021.pdf
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