Case study: How ARC Resources creates economic value for its stakeholders
ARC Resources is a leading Canadian energy producer, committed to delivering strong operational, financial and ESG performance. Delivering shared value for its people, stakeholders, and Indigenous communities is a top priority for ARC Resources. Tweet This!
This case study is based on the 2022 ESG Report by ARC Resources, 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
Through sustainable business results, innovation and responsible development activities, ARC Resources creates long-term value for communities, partners, employees, shareholders and all its stakeholders. In order to create economic value for its stakeholders ARC Resources took action to:
- create economic value for employees
- create economic value for suppliers
- create economic value for providers of capital
- create economic value for governments
- create economic value for landowners
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) ARC Resources has identified;
- How ARC Resources proceeded with stakeholder engagement, and
- What actions were taken by ARC Resources to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2022 ESG Report ARC Resources identified a range of material issues, such as business ethics and corporate governance, GHG emissions, talent attraction, retention and engagement, indigenous peoples’ rights. Among these, creating economic value for its stakeholders stands out as a key material issue for ARC Resources.
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 ARC Resources engages with:
| Stakeholder Group |
| Employees |
| Senior leaders |
| Customers |
| Regulators |
| Investors |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics ARC Resources engaged with its stakeholders through interviews, focus group discussions, and surveys.
What actions were taken by ARC Resources to create economic value for its stakeholders?
In its 2022 ESG Report ARC Resources reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, ARC Resources paid $ 259.7 million to employees.
- Creating economic value for suppliers
- In 2021, ARC Resources paid $ 2,246.2 million to suppliers.
- Creating economic value for providers of capital
- In 2021, ARC Resources paid $ 314.8 million to providers of capital.
- Creating economic value for governments
- In 2021, ARC Resources paid $ 568.6 million to governments.
- Creating economic value for landowners
- In 2021, ARC Resources paid $ 3.2 million to landowners.
- Creating economic value for communities
- In 2021, ARC Resources paid $ 1.7 million to communities.
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 ARC Resources, 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.responsibilityreports.com/HostedData/ResponsibilityReportArchive/a/TSX_ARX_2022.pdf
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