Case study: How AFRY creates economic value for its stakeholders
AFRY is a European leader in engineering, design, and advisory services with a global reach, accelerating the transition towards a sustainable society. AFRY works to meet the current needs of society as well as the needs of future generations for sustainable solutions, creating value for its clients, employees, shareholders, suppliers and society, in both the short and long term.
This case study is based on the 2021 Annual and Sustainability Report by AFRY, 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.
AFRY strives for profitable growth, to generate long-term value for its shareholders, employees, and all other stakeholders. Tweet This! In order to create economic value for its stakeholders AFRY took action to:
- create economic value for employees
- create economic value for the state
- create economic value for shareholders and lenders
- create economic value for society
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With this case study you will see:
- Which are the most important impacts (material issues) AFRY has identified;
- How AFRY proceeded with stakeholder engagement, and
- What actions were taken by AFRY to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Annual and Sustainability Report AFRY identified a range of material issues, such as client responsibility, good business ethics, sustainable solutions, physical and mental well-being. Among these, creating economic value for its stakeholders stands out as a key material issue for AFRY.
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 s 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 AFRY engages with:
| Stakeholder Group | Method of engagement |
| Clients
| · Client meetings · Project meetings · Follow-up interviews after project conclusion · Website · Participation in client events |
| Employees
| · Performance reviews · Intranet · Workplace meetings · Conferences · Internal training · Leadership programmes · Newsletters |
| Partners
| · Planning meetings · Project meetings · Website |
| Owners
| · Investment events, such as in connection with quarterly reports · Capital market days · Annual general meeting · Interviews · Website · Newsletters |
| Suppliers
| · Supplier meetings · Follow-up meetings · Requests for quotes and procurement · Interviews and surveys |
| Media, students, authorities and organisations, universities and colleges | · Website · Attendance at conferences · Counselling on specific issues |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics AFRY engaged with its stakeholders through a survey answered by 5,887 stakeholders.
What actions were taken by AFRY to create economic value for its stakeholders?
In its 2021 Annual and Sustainability Report AFRY reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, AFRY paid SEK 10,503 million for employee wages and benefits.
- Creating economic value for the state
- In 2021, AFRY paid SEK 2,027 million in income tax and employer’s contributions.
- Creating economic value for shareholders and lenders
- In 2021, AFRY paid SEK 566 million in dividends and SEK 71 million in interest on loans.
- Creating economic value for society
- In 2021, AFRY paid SEK 3 million in societal 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 AFRY, 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://afry.com/sites/default/files/2022-04/Annual%20and%20Sustainability%20Report%202021.pdf
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