Case study: How Algonquin creates economic value for its stakeholders
Algonquin works to provide its customers with reliable, accessible, safe, and sustainable energy and water services, recognising that access to energy and water services is foundational to its customers’ health and happiness. Algonquin seeks to grow and create sustainable value responsibly, operate with excellence in mind, and work to build a more sustainable future for all its stakeholders.
This case study is based on the 2022 ESG Report by Algonquin, 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
Algonquin is committed to bringing long-term value to its stakeholders Tweet This!, as it works towards being a top utility and energy provider, continuously improving its financial performance. In order to create economic value for its stakeholders Algonquin took action to:
- create economic value for employees
- create economic value for providers of capital
- create economic value for governments
- create economic value for communities
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) Algonquin has identified;
- How Algonquin proceeded with stakeholder engagement, and
- What actions were taken by Algonquin 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 ESG Report Algonquin identified a range of material issues, such as energy reliability, transitioning to a low-carbon economy, climate resiliency, public health and safety. Among these, creating economic value for its stakeholders stands out as a key material issue for Algonquin.
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 Algonquin engages with:
| Stakeholder Group |
| Customers |
| Employees |
| Investors |
| Regulators |
| Communities |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Algonquin engaged with its stakeholders through surveys and interviews.
What actions were taken by Algonquin to create economic value for its stakeholders?
In its 2022 ESG Report Algonquin reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Algonquin paid $USD 352.8 million for employee wages and benefits.
- Creating economic value for providers of capital
- In 2021, Algonquin paid $USD 535.1 million to providers of capital.
- Creating economic value for governments
- In 2021, Algonquin paid $USD 5.0 million to governments (US and Canada).
- Creating economic value for communities
- In 2021, Algonquin spent $USD 1.4 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
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, IEMA, 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 Algonquin, 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://algonquinpower.com/uploads/docs/AQN-ESG-Report-2022.pdf
Note to Algonquin: 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.