Case study: How Largo creates economic value for its stakeholders
Headquartered in Toronto, Canada, Largo is a publicly traded corporation historically committed to the production and supply of high-quality vanadium products. Largo seeks to be the leading vanadium-focused company by providing the world with low-carbon solutions, creating sustainable value through its unique products, responsible business practices and the commitment of its talented team.
This case study is based on the 2022 Sustainability Report by Largo, 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 activities, long-term value for employees, suppliers and all its stakeholders, is a top priority for Largo. Tweet This! In order to create economic value for its stakeholders Largo took action to:
- create economic value for employees
- create economic value for the government
- create economic value for suppliers
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) Largo has identified;
- How Largo proceeded with stakeholder engagement, and
- What actions were taken by Largo to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2022 Sustainability Report Largo identified a range of material issues, such as occupational health and safety, community relations and development, water and effluents, energy and air emissions (climate change). Among these, creating economic value for its stakeholders stands out as a key material issue for Largo.
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 Largo engages with:
| Stakeholder Group | Method of engagement |
| Employees
| · On-going · Monthly Coffee with the President · 2021 Employee Satisfaction Survey |
| Labour union
| · On-going as needed · Formal meetings every two months |
| On-site contractors
| · On-going as needed · Participation in daily safety dialogues, mining safety week, awareness campaigns |
| Clients
| · Key clients – yearly conference and customer visits · 2021 Customer Survey |
| Suppliers – Tier 1
| · Engagement through the supplier qualification process, contract negotiations and performance evaluations |
| People in Largo’s communities and NGOs
| · Enterprise Monitoring Committee (EMC) – every two months · Rural communities – monthly · Town of Maracás – monthly |
| Regulatory agencies | · On-going through inspections and permit renewals |
| Municipal government
| · Informal through partnership in projects · Representative participates in the PMC meetings every two months |
| Investment community
| · Quarterly earnings and ad hoc webcasts, industry conferences, press releases, corporate communication strategies, on-going outreach by phone and e-mail |
| Industry associations | · IBRAM – Formal virtual monthly meetings |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Largo engaged with its stakeholders through surveys.
What actions were taken by Largo to create economic value for its stakeholders?
In its 2022 Sustainability Report Largo reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2022, Largo paid $ 16.2 million for employee wages and benefits.
- Creating economic value for the government
- In 2022, Largo paid $ 36.5 million in taxes and royalties in Brazil.
- Creating economic value for suppliers
- In 2022, Largo paid $ 157.8 million in expenditures with national suppliers.
- Creating economic value for communities
- In 2022, Largo spent $ 0.3 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 Largo, 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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