Case study: How Loma Negra creates economic value for its stakeholders
Since 1926 Loma Negra is Argentina’s leading company in cement production and trade, producing and commercialising a wide variety of products related to cement, lime, masonry, concrete and aggregates for masonry, concrete mixers, builders and industries. Loma Negra is firmly committed to sustainable business development, and to generating sustainable value for employees, capital providers and all its stakeholders.
This case study is based on the 2021 Sustainability Report by Loma Negra, 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
Loma Negra seeks to build sustainable alliances with its stakeholders, creating long-term value for all. Tweet This! In order to create economic value for its stakeholders Loma Negra took action to:
- create economic value for employees
- create economic value for capital providers
- create economic value for the government
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) Loma Negra has identified;
- How Loma Negra proceeded with stakeholder engagement, and
- What actions were taken by Loma Negra to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Sustainability Report Loma Negra identified a range of material issues, such as ethics & anticorruption, occupational health & safety, environmental compliance, training & development of human capital. Among these, creating economic value for its stakeholders stands out as a key material issue for Loma Negra.
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 Loma Negra engages with:
| Stakeholder Group | Method of engagement |
| Employees
| · Email · Corporate WhatsApp groups · Digital and physical billboards · Dialog cycle · Results meetings |
| Clients
| · Website · Sustainability report · LomaNet portal · Meetings with commercial representatives and the WhatsApp BOT |
| Suppliers
| · Visits to plants · Website · Telephone line · Sustainability report · Face-to-face and/or virtual meetings with buyers |
| Trade unions
| · Face-to-face meetings with Human Resources Directors · Telephone calls · Hearings |
| Construction industry companies | · Virtual or face-to-face meetings in associations or chambers of the sector |
| Chambers and associations
| · Participation of work areas · Board of directors (AFCP) · Webinars |
| Investors and market analysts
| · Results report · Meetings and conferences |
| Government entities
| · Email · Virtual and face-to-face meetings · Meetings with municipal, provincial and national officials |
| CSOs (NGOs, Educational Institutions, Universities, Institutes and Government)
| · Community Development Council (CDC) · Face-to-face meetings · CIVICOs and volunteers · Groups of foundations and chambers of the sector · Other companies · WhatsApp phone · Work groups · Agreements and specific agreements |
| Communities
| · Visits to plants · Website · Telephone line · Media networks · Sustainability report · Foundation’s management report |
| Communication media
| · Telephone line · Social networks · Face -to-face and virtual meetings · Interviews · Press conference |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Loma Negra engaged with its stakeholders through an email explaining the materiality process for preparing the report and requesting stakeholders to focus on material topics.
What actions were taken by Loma Negra to create economic value for its stakeholders?
In its 2021 Sustainability Report Loma Negra reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Loma Negra paid ARS 8,322 million for employee salaries and benefits.
- Creating economic value for capital providers
- In 2021, Loma Negra paid ARS 4,331 million to capital providers.
- Creating economic value for the government
- In 2021, Loma Negra paid ARS 15,110 million to the government.
- Creating economic value for communities
- In 2021, Loma Negra spent ARS 45 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 Loma Negra, 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.lomanegra.com/wp-content/uploads/2022/03/2021-Sustainability-Report-Loma-Negra.pdf
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