Case study: How Atlas Copco creates economic value for its stakeholders
The Atlas Copco Group is a world-leading provider of sustainable productivity solutions demanded by all types of industries, enabling everything from industrial automation to reliable medical air solutions. An integrated sustainable strategy, backed by ambitious targets, helps Atlas Copco deliver greater value to all its stakeholders Tweet This! in a way that is economically, environmentally and socially responsible.
This case study is based on the 2021 Annual Report by Atlas Copco, 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.
By integrating sustainability into its operations and by acting in an ethical way in all activities and markets, Atlas Copco brings long-term value to its customers and society as a whole. In order to create economic value for its stakeholders Atlas Copco took action to:
- create economic value for employees
- create economic value for providers of capital
- create economic value for the government
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With this case study you will see:
- Which are the most important impacts (material issues) Atlas Copco has identified;
- How Atlas Copco proceeded with stakeholder engagement, and
- What actions were taken by Atlas Copco to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Annual Report Atlas Copco identified a range of material issues, such as business integrity, product quality and service, occupational health, safety and well-being, product carbon impact. Among these, creating economic value for its stakeholders stands out as a key material issue for Atlas Copco.
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 Atlas Copco engages with:
| Stakeholder Group | Method of engagement |
| Customers | · Customer visits · Surveys and interviews · Customer events · Website |
| Investors, analysts, shareholders
| · Investor interaction · Capital market days · Annual general meeting · Website · Financial reports and presentations |
| Employees
| · Yearly appraisal · Employee surveys · Work councils · Employee representatives on the Board |
| Society
| · Memberships in international collaborations and industry initiatives · Local engagement · Website · Surveys and interviews |
| Business partners
| · Collaborations with suppliers · On-site evaluation and audits · Surveys and interviews |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Atlas Copco engaged with its stakeholders through surveys and interviews.
What actions were taken by Atlas Copco to create economic value for its stakeholders?
In its 2021 Annual Report Atlas Copco reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Atlas Copco paid MSEK 27 151 for employee wages and benefits, including other social costs.
- Creating economic value for providers of capital
- In 2021, Atlas Copco paid MSEK 9 281 to providers of capital.
- Creating economic value for the government
- In 2021, Atlas Copco paid MSEK 5 372 in direct taxes.
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 Atlas Copco, 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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