Case study: How APC creates economic value for its stakeholders
Established in 1956, Arab Potash Company (APC) is the eighth largest potash producer worldwide by volume of production, and the sole producer of potash in the Arab World. Creating value for its shareholders, customers, employees and all its other stakeholders, is a top priority for APC. Tweet This!
This case study is based on the 2022 Sustainability Report by APC, 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
In 2022, the economic value distributed by APC reached JOD 818,306 thousand. In order to create economic value for its stakeholders APC 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
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With this case study you will see:
- Which are the most important impacts (material issues) APC has identified;
- How APC proceeded with stakeholder engagement, and
- What actions were taken by APC to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2022 Sustainability Report APC identified a range of material issues, such as occupational health and safety, energy, emissions, water and effluent, diversity and equal opportunity. Among these, creating economic value for its stakeholders stands out as a key material issue for APC.
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 APC engages with:
To identify and prioritise material topics APC engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Customers
| · Customer satisfaction surveys · Customer service department feedback discussions · Website and social media · Sustainability Report |
| Suppliers
| · Supplier evaluation process · Digital procurement system |
| Shareholders | · Investor relations · Board of Directors meetings · General assemblies · Annual Reports / Sustainability Report · Website and social media |
| Employees
| · Training needs assessment · Code of Business Ethics · Training and Coaching · Performance reviews · Whistle-blower and complaints policies · Intranet information portal |
| Local community
| · Social Responsibility Association · Vocational Training Institute · Scholarships and internship · Donations · Website and social media |
| Regulating parties
| · Direct contacts · Meetings · Annual Report · Website and social media |
What actions were taken by APC to create economic value for its stakeholders?
In its 2022 Sustainability Report APC reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2022, APC paid JOD 65,461 thousand for employee remuneration.
- Creating economic value for providers of capital
- In 2022, APC paid JOD 105,310 thousand to providers of capital.
- Creating economic value for governments
- In 2022, APC paid JOD 370,210 thousand to governments.
- Creating economic value for communities
- In 2022, APC spent JOD 7,274 thousand 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
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References:
This case study is based on published information by APC, 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://www.arabpotash.com/ebv4.0/root_storage/en/eb_list_page/2022_sustainability_report.pdf
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