Case study: How Aker BP creates economic value for its stakeholders
Aker BP ASA is an upstream oil and gas company established in 2016, engaging in exploration, development and production activities on the Norwegian continental shelf (NCS), and the second-largest operating company on the NCS and one of the largest independent listed oil and gas companies in Europe. Creating shared value is a priority that is firmly embedded in Aker BP’s sustainability framework. Tweet This!
This case study is based on the 2022 Sustainability Report by Aker BP, 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 operations, sustainable value for employees, shareholders and all its stakeholders, is a top priority for Aker BP. In order to create economic value for its stakeholders Aker BP took action to:
- create economic value for employees
- create economic value for shareholders
- create economic value for suppliers
- create economic value for the government
Subscribe for free and read the rest of this case study
Please subscribe to the SustainCase Newsletter to keep up to date with the latest sustainability news and gain access to over 2000 case studies. These case studies demonstrate how companies are dealing responsibly with their most important impacts, building trust with their stakeholders (Identify > Measure > Manage > Change).
With this case study you will see:
- Which are the most important impacts (material issues) Aker BP has identified;
- How Aker BP proceeded with stakeholder engagement, and
- What actions were taken by Aker BP to create economic value for its stakeholders
Already Subscribed? Type your email below and click submit
What are the material issues the company has identified?
In its 2022 Sustainability Report Aker BP identified a range of material issues, such as anti-corruption, climate adaptation, resilience, and transition, waste and effluents, occupational health and safety. Among these, creating economic value for its stakeholders stands out as a key material issue for Aker BP.
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 Aker BP engages with:
To identify and prioritise material topics Aker BP engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Employees | · Internal communication channels · Meetings with representatives · Town hall events |
| Investors
| · Financial reporting · Investor meetings · Annual general meeting |
| Authorities
| · Contact meetings · Reporting · Audits |
| Local communities
| · Formal meetings · Public hearings · Conferences |
| NGOs
| · Media monitoring · Public hearings · Conferences |
| Suppliers/ contractors | · Negotiations and contracts · Supplier events · Audits |
| Partners
| · Industry meetings · Working groups · Negotiations |
What actions were taken by Aker BP to create economic value for its stakeholders?
In its 2022 Sustainability Report Aker BP reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2022, Aker BP paid 397 million USD for employee wages and benefits.
- Creating economic value for shareholders
- In 2022, Aker BP paid 1,006 million USD in dividends to shareholders.
- Creating economic value for suppliers
- In 2022, Aker BP paid 2,714 million USD for goods and services.
- Creating economic value for the government
- In 2022, Aker BP paid 5,454 million USD in taxes and payments to the government.
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
78% of the world’s 250 largest companies report in accordance with the GRI Standards
SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.
Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.
7 GRI sustainability disclosures get you started
Any size business can start taking sustainability action
GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom (venue: London School of Economics)
- Exclusive FBRH template to begin reporting from day one
- Identify your most important impacts on the Environment, Economy and People
- Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP.
- Benchmarking methodology to set you on a path of continuous improvement
References:
This case study is based on published information by Aker BP, 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://akerbp.com/wp-content/uploads/2023/03/aker-bp-sustainability-report-2022.pdf
Note to Aker BP: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.