Case study: How BAC creates economic value for its stakeholders
Brisbane Airport Corporation Pty Limited (BAC), the operator of Brisbane Airport, is a private, unlisted Queensland company that proudly takes on the challenge of connecting Australia to the rest of the world every day. BAC is committed to creating Queensland’s future, helping employ thousands of Queenslanders Tweet This! and creating economic benefit equating to more than $4 billion annually.
This case study is based on the 2019 Sustainability Report by BAC published on the Global Reporting Initiative Sustainability Disclosure Database 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
Brisbane Airport is one of most important pieces of infrastructure in Queensland that drives economic growth to the region and Australia, with almost 24,000 employees and more than 425 businesses from enterprises such as airline catering and maintenance to supermarkets and shopping outlets, all calling the airport home. In order to create economic value for its stakeholders BAC took action to:
- create economic value for employees
- contribute economically to the Australian economy
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With this case study you will see:
- Which are the most important impacts (material issues) BAC has identified;
- How BAC proceeded with stakeholder engagement, and
- What actions were taken by BAC to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2019 Sustainability Report BAC identified a range of material issues, such as ethics and integrity, compliance, business continuity and emergency preparedness, climate change. Among these, creating economic value for its stakeholders stands out as a key material issue for BAC.
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 BAC engages with:
| Stakeholder Group | Method of engagement |
| Internal Staff and Contractors | · Weekly newsletters · Regular ‘Staff Talks’ sessions · Annual surveys |
| BAC Board
| · Meetings at regular intervals · Engagement with BAC management |
| BAC Shareholders | · Regular financial and sustainability reporting |
| Airport Tenant and Service Operators
| · Individual departments within BAC communicate to tenants through various means, from weekly newsletters and meetings to quarterly themed workshops |
| Passengers
| · Traditional and social media and the BNE website · Service quality and passenger satisfaction surveys |
| Airlines
| · Information collaboration and formal meetings and workgroups |
| Local Community | · Community Engagement Programme |
| Government Agencies
| · Formal written correspondence · Regular informal meetings · Workgroups |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics BAC conducted electronic surveys and one-on-one interviews with select stakeholders.
What actions were taken by BAC to create economic value for its stakeholders?
In its 2019 Sustainability Report BAC reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- Employment at Brisbane Airport is estimated to provide $1.5 billion annually in employee wages to Queensland families, with a further $818 million earned through the associated supply chains.
- Contributing economically to the Australian economy
- Brisbane Airport’s total economic contribution to the Australian economy is forecast to grow from its current figure of $4.7 billion per annum to an estimated $8.7 billion by the year 2040, a real annual growth rate of 3.1 per cent. Together, the direct and indirect economic contributions of Brisbane Airport are estimated to currently account for approximately 1.3 per cent of Queensland Gross State Product. Additionally, there are many other businesses outside the airport that derive economic benefit from the airport’s operations, which range from tourism providers, construction services, transport operators and freight organisations. The three main components that make up Brisbane Airport’s economic contribution include:
- Direct inputs (in $) from wages and added business values of the airport businesses
- Indirect contributions or associated flow on benefits (in $) from the business transactions between airport businesses and the broader economy
- Provision of vital infrastructure which enables opportunities for greater access and connectivity to local and global markets (qualitative)
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:
1) This case study is based on published information by BAC, 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 original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:
http://database.globalreporting.org/
2) https://www.globalreporting.org/standards/gri-standards-download-center/
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