Case study: How Johnson Controls creates economic value for its stakeholders
Johnson Controls is a world leader in smart buildings, creating safe, healthy and sustainable spaces. Johnson Controls is firmly committed to generating sustainable value for employees, providers of capital, communities, and all its diverse stakeholders. Tweet This!
This case study is based on the 2023 Sustainability Report by Johnson Controls, 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
Creating, through its operations, long-term value for the communities where it operates and all its stakeholders, is a top priority for Johnson Controls. In order to create economic value for its stakeholders Johnson Controls 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
Subscribe for free and read the rest of this case study
Please subscribe to the SustainCase Newsletter to keep up to date with the latest sustainability news and gain access to over 2000 case studies. These case studies demonstrate how companies are dealing responsibly with their most important impacts, building trust with their stakeholders (Identify > Measure > Manage > Change).
With this case study you will see:
- Which are the most important impacts (material issues) Johnson Controls has identified;
- How Johnson Controls proceeded with stakeholder engagement, and
- What actions were taken by Johnson Controls to create economic value for its stakeholders
Already Subscribed? Type your email below and click submit
What are the material issues the company has identified?
In its 2023 Sustainability Report Johnson Controls identified a range of material issues, such as sustainable products and solutions, greenhouse gas emissions, cybersecurity, social impact and employee experience. Among these, creating economic value for its stakeholders stands out as a key material issue for Johnson Controls.
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 Johnson Controls engages with:
| Stakeholder Group |
| Customers |
| Suppliers |
| Partners |
| NGOs |
| Trade associations |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Johnson Controls engaged with its stakeholders through a survey.
What actions were taken by Johnson Controls to create economic value for its stakeholders?
In its 2023 Sustainability Report Johnson Controls reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In fiscal 2022, Johnson Controls paid USD 6,680 million for employee wages and benefits.
- Creating economic value for providers of capital
- In fiscal 2022, Johnson Controls paid USD 1,129 million to providers of capital.
- Creating economic value for the government
- In fiscal 2022, Johnson Controls paid USD 568 million to the government.
- Creating economic value for communities
- In fiscal 2022, Johnson Controls spent USD 14.8 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
78% of the world’s 250 largest companies report in accordance with the GRI Standards
SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.
Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.
7 GRI sustainability disclosures get you started
Any size business can start taking sustainability action
GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom (venue: London School of Economics)
- Exclusive FBRH template to begin reporting from day one
- Identify your most important impacts on the Environment, Economy and People
- Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP.
- Benchmarking methodology to set you on a path of continuous improvement
References:
This case study is based on published information by Johnson Controls, 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:
Note to Johnson Controls: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.