Case study: How SRF creates economic value for its stakeholders
SRF is a chemical-based multi-business global entity engaged in the manufacturing of industrial and specialty intermediates, operating in 4 countries with 14 manufacturing plants. Creating long-term value for all its stakeholders, is a top priority for SRF. Tweet This!
This case study is based on the 2019-21 Sustainability Report by SRF, 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
Committed to embedding sustainability within its businesses, SRF seeks, through its operations, to generate shared value for all its stakeholders. In order to create economic value for its stakeholders SRF took action to:
- create economic value for employees
- create economic value for the government
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With this case study you will see:
- Which are the most important impacts (material issues) SRF has identified;
- How SRF proceeded with stakeholder engagement, and
- What actions were taken by SRF to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2019-21 Sustainability Report SRF identified a range of material issues, such as occupational health and safety, air and GHG emissions, emergency preparedness, business risk management. Among these, creating economic value for its stakeholders stands out as a key material issue for SRF.
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 SRF engages with:
To identify and prioritise material topics SRF engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Shareholders, Investors
| · Company website · Quarterly publication of results followed by earnings calls · Periodic briefing by analysts and individual discussions between the management team and fund managers |
| Customers
| · Customer visits/audit and meetings · Customer recognition/ awards programmes · Customer satisfaction surveys · Joint development and product reengineering |
| Suppliers
| · Supplier evaluation programme · Periodic meetings · Visits to suppliers’ facilities |
| Employees
| · Structured and focused training programmes · IT enablement and digitisation · Employee-oriented work policies · Adequate grievance mechanism for reporting and redressal · Transparent and fair performance management systems and 360-degree feedback processes · Regular open-house meetings with senior leadership teams · Regular employee engagement and feedback surveys |
| Local Community
| · Social impact assessment · Joint development and partnership with local agencies and network partners to facilitate the servicing of a wider set of local communities · Local infrastructure development, structured learning through digital classrooms training, provision of scholarships, and other necessary support |
| Regulatory Bodies
| · Adherence to reporting requirements · Industry representation on key matters |
What actions were taken by SRF to create economic value for its stakeholders?
In its 2019-21 Sustainability Report SRF reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2020-21, SRF paid INR 692.29 and 1,532.70 million for employee wages and benefits (Bhiwadi and Dahej, respectively).
- Creating economic value for the government
- In 2020-21, SRF paid INR 1093.78 and 5,270.90 million to the government (Bhiwadi and Dahej, respectively).
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 SRF, 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.srf.com/wp-content/uploads/2022/11/SRF-CB-2019-21-Sustainability-Report-V2.pdf
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