Case study: How Alecta creates economic value for its stakeholders
Alecta takes care of the occupational pension for 2.6 million private individuals and 35,000 companies in Sweden. Its mission is to provide the occupational pension with the greatest possible value for both its private and corporate customers. The economic value generated and distributed among its stakeholders reflects Alecta’s capacity Tweet This!, with the distribution characterised by the mutual concept of maximising the value given back through cost-efficient operations.
This case study is based on the 2020 Annual and Sustainability Report by Alecta, 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
By providing a good, stable occupational pension, Alecta adds value to the national social security system and to the economy, generating sustainable value for a wide range of stakeholders. In order to create economic value for its stakeholders Alecta took action to:
- create economic value for employees
- create economic value for suppliers and partners
- create economic value for the state
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With this case study you will see:
- Which are the most important impacts (material issues) Alecta has identified;
- How Alecta proceeded with stakeholder engagement, and
- What actions were taken by Alecta to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020 Annual and Sustainability Report Alecta identified a range of material issues, such as strong regulatory compliance, high level of customer privacy, responsible investments. Among these, creating economic value for its stakeholders stands out as a key material issue for Alecta.
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 Alecta engages with:
| Stakeholder Group | Method of engagement |
| Customers – private and corporate customers
| · Customer service · Surveys · E-mail contacts · Company visits · Networks |
| Principals – unions and employers
| · The Board of Directors · Committees · Seminars · Procurements |
| Employees
| · Employee surveys · Whistleblower function · The intranet · Internal seminars · Meetings with the CEO and various meeting forums, such as breakfast and lounge meetings |
| Partners and suppliers
| · Negotiations and agreements · Forums for cooperation |
| Society and broader stakeholder groups
| · Lectures at universities · Industry dialogue · Meetings with politicians · Seminars · Media debate |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Alecta engaged with its stakeholders through a stakeholder survey that encompassed client companies, private-sector employees and Alecta employees.
What actions were taken by Alecta to create economic value for its stakeholders?
In its 2020 Annual and Sustainability Report Alecta reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2020, Alecta paid 358 SEK million for employee salaries and remuneration.
- Creating economic value for suppliers and partners
- In 2020, Alecta paid 633 SEK million to suppliers and partners.
- Creating economic value for the state
- In 2020, Alecta paid 557 SEK million in yield tax and income tax in Sweden and abroad as well as social security fees for employees.
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 Alecta, 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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