Case study: How AMATA creates economic value for its stakeholders
AMATA Corporation Public Company Limited is one of Thailand’s leading industrial estate developers, specialising in the industrial estate development and entire businesses related to the industrial estate. AMATA operates strictly according to the “ALL WIN” philosophy, which focuses on creating value for all its stakeholders Tweet This! along with the company’s business growth.
This case study is based on the 2021 Sustainability Report by AMATA, 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.
AMATA applies the principle of Creating Shared Value to enhance projects and business activities, so as to create more sustainable value for all its stakeholders and solve social and environmental problems. In order to create economic value for its stakeholders AMATA took action to:
- create economic value for employees
- create economic value for suppliers
- create economic value for the state and local authorities
- create economic value for shareholders
- create economic value for society
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With this case study you will see:
- Which are the most important impacts (material issues) AMATA has identified;
- How AMATA proceeded with stakeholder engagement, and
- What actions were taken by AMATA 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 AMATA identified a range of material issues, such as environmental impact management, circular economy, water management, social impact management. Among these, creating economic value for its stakeholders stands out as a key material issue for AMATA.
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 AMATA engages with:
| Stakeholder Group | Method of engagement |
| Employee
| · Annual meeting between top executives and employees · Quarterly staff meetings · Online communication, intranet and email · Direct channel to CEO for staff’s complaint and suggestions · Quarterly meeting of Welfare Committee · Annual Employee Engagement Survey |
| Customer | · Annual Customer Satisfaction Survey · Customer relation activities/ marketing activities · Online / Email Communications · Face to face meeting · Line Official |
| Supplier/ Contractor
| · Face to face meetings · Supplier assessment · Online / Email Communication · Channels for suggestion and complaint |
| Shareholder
| · Annual Shareholder Meeting · Directors’ meetings in subsidiaries and associated companies · Opportunity Investment Roadshow · Opportunity Day at SET · Quarterly Investor Meetings · Online / Email Communication · Channels for suggestion |
| Business Partner
| · Directors’ meetings in subsidiaries and associated companies · Face to face meetings · Online / Email Communication · Response to requests for information disclosure or report |
| Local Community
| · Public hearing and meetings with management · Community relation initiatives · Community satisfaction survey (annual and by activity) · Online / Email Communication · Other communication Channels for suggestion and complaint · Open house |
| Government | · Face to face meetings · Participation in and support projects run by the government · Participations in government lead committee as requested · Site visits · Online / Email Communication · Response to requests for information disclosure or report |
| Creditor | · Analyst Meetings · Face to face meetings · Site visits · Online / Email Communication |
| Competitor
| · Meetings with industry’s association or organisations · Participate in working teams that are relevant to competitors as requested by the government |
| Media | · Press release · Special interviews as requested · Site visits / Press tours · Response to requests for information disclosure or report |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics AMATA engaged with its stakeholders through meetings, formal and informal interviews, questionnaires and engagement surveys.
What actions were taken by AMATA to create economic value for its stakeholders?
In its 2021 Sustainability Report AMATA reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, AMATA paid THB 333.61 million for employee compensation (salary, bonus, wage, welfare, provident fund, social security, personal development expense).
- Creating economic value for suppliers
- In 2021, AMATA paid THB 1,546.00 million in domestic procurement.
- Creating economic value for the state and local authorities
- In 2021, AMATA paid THB 351.59 million in tax to the state and local authorities.
- Creating economic value for shareholders
- In 2021, AMATA paid THB 344.99 million in dividends to shareholders.
- Creating economic value for society
- In 2021, AMATA paid THB 6.91 million in social activities, THB 9.48 million in social investments excluding donations and THB 15.77 million in donations.
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 AMATA, 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://amata.listedcompany.com/misc/sdr/20220408-amata-sdr2021-en.pdf
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