Case study: How Banpu creates economic value for its stakeholders
Established on 16 May 1983 as “Ban Pu Coal Company Limited”, Banpu is currently an international versatile energy provider operating in 10 countries worldwide. Banpu believes that business should not only focus on profitability, but also consider how to distribute economic value among related stakeholders. Tweet This!
This case study is based on the 2020 Sustainability Report by Banpu, 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 2020, although Banpu recorded a net loss, dividends were paid to shareholders and Banpu maintained the economic value distributed among all its key stakeholders. In order to create economic value for its stakeholders Banpu took action to:
- create economic value for employees, suppliers and contractors
- create economic value for shareholders and financial institutions
- create economic value for the government and 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) Banpu has identified;
- How Banpu proceeded with stakeholder engagement, and
- What actions were taken by Banpu 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 2020 Sustainability Report Banpu identified a range of material issues, such as community engagement, occupational health and safety, human capital development, business continuity management. Among these, creating economic value for its stakeholders stands out as a key material issue for Banpu.
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 Banpu engages with:
To identify and prioritise material topics Banpu engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Government | · Occasional visit · Support to governmental initiatives and activities · Response to requests for data disclosure · Publication of annual report and sustainability report · Public information on Banpu’s website |
| Employee
| · Communication between human resources department and employee · Employee involvement in committees · Compliant channel · “Banpu Heart” behavioural survey · Employee engagement survey · Town Hall Meeting |
| Customer | · Customer satisfaction survey · Compliant channel · Customer visit · Response to requests for data disclosure · Report on annual maintenance plan and emergency drill · Inform consent for customer data use · Data security mechanism |
| Supplier | · Regular meeting with supplier · Data security mechanism |
| Contractor
| · Regular meeting with contractor · Annual mining contractor meeting |
| Financial Institution | · Analyst meeting · Publication of annual report and sustainability report |
| Business Partner | · Board meeting at subsidiaries and associated companies · Publication of annual report and sustainability report · Report on annual maintenance plan and emergency drill |
| Shareholder
| · Annual general meeting of shareholder · Publication of annual report and sustainability report · Compliant channel · Public information on Banpu’s website |
| Investor | · Opportunity investment roadshow · Presentation on Opportunity Day organised by Stock Exchange of Thailand · Publication of annual report and sustainability report · Public information on Banpu’s website |
| Media and NGOs | · Response to requests for data disclosure · Fact sheet summary · Public information on Banpu’s website |
| Community | · Community Consultative Committee (CCC) · Community satisfaction survey · Compliant channel · Communication with community development officers · Public information on Banpu’s website |
What actions were taken by Banpu to create economic value for its stakeholders?
In its 2020 Sustainability Report Banpu reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees, suppliers and contractors
- In 2020, Banpu paid USD 308 million for employee remuneration and benefits, provident fund contributions and employee development expenses and USD 1,173 million to suppliers and contractors.
- Creating economic value for shareholders and financial institutions
- In 2020, Banpu paid USD 63 million for shareholder dividends and USD 166 million to financial institutions, including interest and financial expenses.
- Creating economic value for the government and communities
- In 2020, Banpu spent USD 246 million in royalty fee, corporate income tax, local maintenance tax, property tax, specific business tax, and other additional taxes and payments to the government and USD 3 million in community development expenses, corporate social responsibility activities and land compensation.
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
See upcoming training dates.
References:
This case study is based on published information by Banpu, 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.banpu.com/investor-relations/publications/sustainability-report/
Note to Banpu: 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.