Case study: How BPCL creates economic value for its stakeholders
Operating across India through nine business units and a pipeline network that spans 2596 kilometres, Bharat Petroleum Corporation Limited (BPCL), as a leader in the petroleum sector, is determined to fuel India’s developmental journey. BPCL is known for breaking new ground in the fuel retailing industry with appropriate strategies, new capabilities, innovative offerings, and creating sustainable value for all its stakeholders.
This case study is based on the FY 2021-22 Sustainability Report by BPCL, 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 FY 2021-22, the economic value distributed by BPCL reached INR 4,33,406.48 Crores. Tweet This! In order to create economic value for its stakeholders BPCL took action to:
- create economic value for employees
- create economic value for providers of capital
- create economic value for governments
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) BPCL has identified;
- How BPCL proceeded with stakeholder engagement, and
- What actions were taken by BPCL to create economic value for its stakeholders
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What are the material issues the company has identified?
In its FY 2021-22 Sustainability Report BPCL identified a range of material issues, such as compliance and governance, energy use and transition, product security, efficient water management. Among these, creating economic value for its stakeholders stands out as a key material issue for BPCL.
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 BPCL engages with:
| Stakeholder Group | Method of engagement |
| Customers
| · Customer Meeting · Customer Satisfaction Survey · Online communication · Customer feedback Satisfaction survey · Customer Meeting |
| Communities and NGOs
| · Project reviews are undertaken periodically · Interaction with community focus groups |
| Dealers and Distributors
| · Award Functions · Meetings and training sessions · Individual Interactions with Dealers and Distributors |
| Employees
| · Performance appraisal · Training, Wellness programmes, online Communication · Personal Interaction |
| Government and Regulators
| · Memorandum of Understanding with Regulators · Meetings with Regulators · Meetings for new policy developments and Ministry Directives |
| Shareholders and Investors
| · Annual General Meeting (AGM) for shareholders · Quarterly reports · Quarterly investor meets · Press Releases · Investor Meetings |
| Suppliers and Contractors
| · Contractors · Vendor meets · Inspection visits to facility, emails and phone calls · Vendor Meets |
| 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 BPCL engaged with its stakeholders through an online survey.
What actions were taken by BPCL to create economic value for its stakeholders?
In its FY 2021-22 Sustainability Report BPCL reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In FY 2021-22, BPCL paid INR 3,468.84 Crores for employee wages and benefits.
- Creating economic value for providers of capital
- In FY 2021-22, BPCL paid INR 16,351.21 Crores to providers of capital.
- Creating economic value for governments
- In FY 2021-22, BPCL paid INR 75,370.98 Crores to governments.
- Creating economic value for communities
- In FY 2021-22, BPCL spent INR 166.73 Crores 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 BPCL, 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.bharatpetroleum.in/images/files/SustainabilityReport21-22.pdf
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