Case study: How UltraTech creates economic value for its stakeholders
UltraTech Cement Limited is India’s largest and the world’s third largest cement manufacturing company, with operations that span across India, UAE, Bahrain and Sri Lanka. Creating consistent value for its stakeholders – people, communities, supply chain partners, investors, shareholders, customers and other components of its value chain – is a top priority for UltraTech.
This case study is based on the 2021-22 Sustainability Report by UltraTech, 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
UltraTech’s efforts to contribute to societal progress and mitigate environmental risks across its value chain help it make a material difference to all its stakeholders, generating sustained value for all. Tweet This! In order to create economic value for its stakeholders UltraTech took action to:
- create economic value for employees
- create economic value for the government
- create economic value for lenders
- create economic value for shareholders
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With this case study you will see:
- Which are the most important impacts (material issues) UltraTech has identified;
- How UltraTech proceeded with stakeholder engagement, and
- What actions were taken by UltraTech to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021-22 Sustainability Report UltraTech identified a range of material issues, such as climate change, health and safety, transparency, sustainable products, research and development. Among these, creating economic value for its stakeholders stands out as a key material issue for UltraTech.
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 UltraTech engages with:
| Stakeholder Group | Method of engagement |
| Industry Associations, CEO-Led Organisations, International Commitments | · Meetings · Participation in governance bodies · Website · Sustainability Report |
| Shareholders, Lenders and Investors
| · Annual report and regulatory filings · Annual General Meeting · Shareholder meetings and presentations · Carbon Disclosure Project Report · Sustainability Report · Business Responsibility and Sustainability Report · Dow Jones Sustainability Index (DJSI) disclosure · Grievance redressal · One-on-one meetings, investor conferences, investor calls |
| Government and Regulatory Authorities
| · Annual report and regulatory filings · Meetings on government directives and policy development · Facility inspections · Regular meetings |
| Employees
| · Employee health check-ups · Employee volunteering activities · Employee Reward & Recognition schemes · Employee satisfaction survey · DISHA -Quarterly CXO Dialogue · Grievance redressal · Intranet, Annual Report, Sustainability Report |
| Customers
| · Company website · Product campaigns · Satisfaction surveys · Grievance redressal · Customer oriented initiatives · Feedback surveys |
| Suppliers and Contractors
| · Contract procedures and project timelines · Facility inspections · Review meetings · Vendor interaction meets · Feedback forms · Annual performance report · Annual stakeholder meets · Supplier grievance mechanism · Supplier Assessment |
| Community
| · Community need assessments · Disaster management workshops · Community visits · Satisfaction surveys · Meetings with community representatives · Impact Assessment studies · Grievance redressal |
| Media and NGOs
| · One-on-one interactions · Direct contact during activities · Social surveys |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics UltraTech engaged with its stakeholders through surveys.
What actions were taken by UltraTech to create economic value for its stakeholders?
In its 2021-22 Sustainability Report UltraTech reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In FY 2021-22, UltraTech paid ₹ 23.59 billion for employees, welfare and community development.
- Creating economic value for the government
- In FY 2021-22, UltraTech paid ₹ 133.75 billion in government taxes.
- Creating economic value for lenders
- In FY 2021-22, UltraTech paid ₹ 7.98 billion to lenders.
- Creating economic value for shareholders
- In FY 2021-22, UltraTech paid ₹ 10.97 billion in dividends.
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 UltraTech, 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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