Case study: How Cathay Pacific creates economic value for its stakeholders
Cathay Pacific together with its subsidiaries had 222 aircraft at the end of 2022 and, immediately prior to the onset of COVID-19, its airlines directly connected Hong Kong to 119 destinations in 35 countries worldwide, including 26 destinations in Chinese mainland. Ongoing engagement and open communication with key stakeholder groups is, for Cathay Pacific, crucial to building collaborative relationships and creating long-term value for all.
This case study is based on the 2022 Sustainable Development Report by Cathay Pacific, 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 employees, providers of capital and all its stakeholders, is a top priority for Cathay Pacific. Tweet This! In order to create economic value for its stakeholders Cathay Pacific took action to:
- create economic value for employees
- create economic value for providers of capital
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) Cathay Pacific has identified;
- How Cathay Pacific proceeded with stakeholder engagement, and
- What actions were taken by Cathay Pacific to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2022 Sustainable Development Report Cathay Pacific identified a range of material issues, such as flight safety and security, business ethics and anti-corruption, privacy and data protection, infectious disease. Among these, creating economic value for its stakeholders stands out as a key material issue for Cathay Pacific.
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 Cathay Pacific engages with:
| Stakeholder Group | Method of engagement |
| Employees
| · Surveys · Meetings or focus groups · Internal communication platforms · Employee town halls · Meetings with staff unions · Employees engagement activities · Mobile applications |
| Customers
| · Surveys · Focus groups · Cathay website and social media · Hotline and online enquiries · Mobile applications |
| Suppliers and business partners
| · Surveys · Periodic meetings with key suppliers and partners · Supplier screening and assessments · Partnership programmes · Meetings with industry bodies · Advisory panels |
| Investors and regulators
| · Annual General Meetings · Annual and interim reporting · Announcements and circulars · Investor meetings · Press releases · Hotline and online enquiries · Meetings with government bodies |
| NGO partners
| · Community events · Partnership programmes · Multi-stakeholder meetings |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Cathay Pacific engaged with its stakeholders through a survey.
What actions were taken by Cathay Pacific to create economic value for its stakeholders?
In its 2022 Sustainable Development Report Cathay Pacific reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2022, Cathay Pacific paid HK$ 10,571 million in staff expenses.
- Creating economic value for providers of capital
- In 2022, Cathay Pacific paid HK$ 3,074 million to providers of capital.
- Creating economic value for communities
- In 2022, Cathay Pacific spent HK$ 6 million 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 Cathay Pacific, 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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