Case study: How Air Products creates economic value for its stakeholders
Air Products provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemical, metals, electronics, manufacturing, and food and beverage, and is also the global leader in the supply of liquefied natural gas process technology and equipment. Having a strong financial position allows Air Products to continue to commit significant capital to grow into the future, creating value for all its stakeholders and society.
This case study is based on the 2023 Sustainability Report by Air Products, 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
Generating, through its operations, sustainable value for all its stakeholders, is a top priority for Air Products. Tweet This! In order to create economic value for its stakeholders Air Products took action to:
- create economic value for the state
- create economic value for shareholders
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) Air Products has identified;
- How Air Products proceeded with stakeholder engagement, and
- What actions were taken by Air Products to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2023 Sustainability Report Air Products identified a range of material issues, such as energy and climate/CO2, ethics and integrity, safety and health, sustainable products and innovation. Among these, creating economic value for its stakeholders stands out as a key material issue for Air Products.
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 Air Products engages with:
| Stakeholder Group |
| Customers |
| Employees |
| Investors |
| Communities |
| Suppliers |
| Government regulators |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Air Products engaged with its stakeholders through a survey.
What actions were taken by Air Products to create economic value for its stakeholders?
In its 2023 Sustainability Report Air Products reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for the state
- In fiscal year 2022, Air Products paid $500.8 million in income tax.
- Creating economic value for shareholders
- In fiscal year 2022, Air Products paid $1,383.3 million in dividends.
- Creating economic value for communities
- In fiscal year 2022, Air Products paid $7 million in donations to communities.
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 Air Products, 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.airproducts.com/company/sustainability/sustainability-report
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