The case for CSR/ Sustainability Reporting Done Responsibly


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Home / GRI Standards / Case study: How Cenergy Holdings ensures product quality and safety

Case study: How Cenergy Holdings ensures product quality and safety

The Cenergy Holdings portfolio consists of Corinth Pipeworks (CPW), a global leader in steel pipe manufacturing and major producer of hollow sections for the oil and gas and the construction sector, respectively, and the Hellenic Cables Group, one of the largest European cable producers, manufacturing power and telecom cables for a range of sectors. Given the rising demand, globally, for quality solutions in the energy, telecommunications and construction sectors, ensuring product quality and safety is a top priority for Cenergy Holdings  Tweet This!.

This case study is based on the 2016 Annual Report by Cenergy Holdings and on the 2016 Sustainable Development Reports by Corinth Pipeworks and the Hellenic Cables GroupThrough all case studies we aim to demonstrate what CSR/ 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.

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Abstract

Both Corinth Pipeworks and the Hellenic Cables Group strive to offer quality, first rate solutions for the fast growing energy, telecommunications and construction sectors. In order to ensure product quality and safety, Corinth Pipeworks and the Hellenic Cables Group took action to:

  • apply explicit manufacturing standards
  • ensure Corinth Pipeworks’ products meet the strictest quality and safety standards
  • ensure Hellenic Cables’ products meet the strictest quality and safety standards

What are the material issues the company has identified?

In its 2016 Annual Report Cenergy Holdings identified a range of material issues, such as economic performance, environmental law and regulations, Greece’s economic condition, waste management, higher demand for renewable energy, employee health and safety. Among these, ensuring product quality and safety stands out as a key material issue for Cenergy Holdings.

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:

“The organization should identify its stakeholders, and explain how it has responded to their reasonable expectations.”

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 Cenergy Holdings engages with:   

Stakeholder Group Method of engagement
Shareholders Corinth Pipeworks:

·         Annual General Meeting of Shareholders

·         Regular meetings with the Company’s senior management

·         Press releases, announcements and exhibitions

·         Publication of the Annual Report

Hellenic Cables Group:

·         Annual general meeting

·         Extraordinary general meetings

·         Analysts and company’s executives contact

·         Reporting and presentation of results on quarterly, semi-annual and annual basis

Customers Corinth Pipeworks:

·         Customer satisfaction survey

·         Constant contact face-to-face and by phone, attendance at fairs/exhibitions

·         Project Management Department and product certification procedures

·         Attendance at industry or customer conferences, fora and events

·         Marketing activities

Hellenic Cables Group:

·         Customer satisfaction survey (biennial)

·         Customer service department

·         Ongoing contact through commercial department

·         Handling complaints

·         Attendance of sectoral trade fairs (or Presence in sectoral exhibitions and trade fairs)

Employees Corinth Pipeworks:

·         Company intranet

·         On-going communication between the Management and Human Resources, via the Open Door Policy

·         Briefings via email and announcements on notice boards

·         Employee appraisals

Hellenic Cables Group:

·         Company intranet

·         Annual employee satisfaction survey

·         Informing via e-mail and newsletters posted on bulletin boards (for workforce)

·         Corporate events

Suppliers

 

Corinth Pipeworks:

·         Procurement Department for each category of supplies

·         Communication with the Accounting Office about financial issues

·         Attendance at trade fairs and events

·         Suppliers systematically briefed about market developments

Hellenic Cables Group:

·         Communication with suppliers through Supplies Department of the Company

·         Collaboration with selected suppliers on additional product certification

·         Participation in segment associations

·         Presence at suppliers’ exhibitions

State and institutional bodies Corinth Pipeworks:

·         Involvement in policy- and decision-making (via membership of the Hellenic Federation of Enterprises)

·         Attendance at conferences

·         Attendance at events organized by public agencies

·         Participation in government surveys and consultations

·         Membership of local bodies such as the Federation of Sterea Ellada Industries and the Hellenic Union of Industrial Energy Consumers (UNICEN)

Hellenic Cables Group:

·         Participation in conferences and events of sectoral or general business interest

·          Consultation with state and institutional bodies’ representatives on national and/or regional level

Local communities and NGOs Corinth Pipeworks:

·         On-going communication with local community organisations

·         Participation in local community organisations’ events and activities

·         Participation of company representatives in events and fora to exchange views

·         Main member of the Hellenic Network for CSR (CSR Hellas)

Hellenic Cables Group:

·         Communication with local governmental bodies

·         Participation in local community events

·         Hosting visits to Company plants

How stakeholder engagement was made to identify material issues

Cenergy Holdings’ companies conduct a materiality analysis in accordance with the Global Reporting Initiative’s sustainability reporting standards, to identify and prioritize their material issues. The process is as follows:

  • an initial survey is conducted and issues are recorded
  • issues are prioritized on the basis of in-house assessments
  • material issues are communicated to stakeholders, to record their opinions
  • stakeholders’ opinions are integrated and the final list of the Company’s material issues is prepared

What actions were taken by Cenergy Holdings to ensure product quality and safety?

In their 2016 Sustainable Development Reports Corinth Pipeworks and the Hellenic Cables Group – and, also, Cenergy Holdings in its 2016 Annual Report – report that they took the following actions for ensuring product quality and safety:

  • Applying explicit manufacturing standards
  • Both Corinth Pipeworks and the Hellenic Cables Group apply specific manufacturing standards. They do so in order to ensure proper product labeling throughout the production process. All products:
    • carry marks of conformity and trademark licenses by well-known certification bodies
    • are accompanied by a quality certificate in accordance with international standards (EN/ISO) confirming production process specifications, raw materials used and the end product
    • may be delivered to customers with a data book on product testing
    • are accompanied by instructions on transportation, storage and product usage
  • Ensuring Corinth Pipeworks’ products meet the strictest quality and safety standards
  • Corinth Pipeworks designs and manufactures products to meet the strictest quality and safety standards. More specifically:
    • line pipes used for oil and gas transportation are designed and manufactured to comply with specific safety standards
    • casing pipes are manufactured to comply with the requirements of international standards (API 5CT and API 5L/ ISO 11960)
    • hollow structural sections are manufactured according to the European Standard EN 10219-1
    • pipes for water transportation can be externally coated or internally lined to ensure corrosion protection and smooth water flow, complying with hygiene and drinking water requirements
  • Ensuring Hellenic Cables’ products meet the strictest quality and safety standards
  • Hellenic Cables designs and manufactures products to meet the strictest quality and safety standards. More specifically:
    • the Company has developed and applies a quality policy and a Quality Management System, in accordance with the ISO 9001 Standard
    • all Company facilities are certified according to the ISO 9001 Standard
    • to ensure the high quality of products, the Company carries out type tests in independent laboratories or in the Company plants, supervised by independent bodies
    • to protect the health and safety of customers, the Company continuously monitors its products, throughout their entire life cycle
    • the Company has designed and manufactures fire retardant, fire resistant and halogen-free cables to protect end users in the event of fire

Which GRI indicators/Standards have been addressed?

The GRI indicators/Standards addressed in this case are:

1) G4-PR1: Percentage of significant product and service categories for which health and safety impacts are assessed for improvement – the updated GRI Standard is: Disclosure 416-1 Assessment of the health and safety impacts of product and service categories

2) G4-PR3: Type of product and service information required by the organization’s procedures for product and service information and labeling, and percentage of significant products and service categories subject to such information requirements – the updated GRI Standard is: Disclosure 417-1 Requirements for product and service information and labeling

 

References:

1) This case study is based on published information by Cenergy Holdings, Corinth Pipeworks and the Hellenic Cables Group, located at the links 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 published information’s meaning. If you would like to quote these written sources from the original please revert to the following links:

http://www.cenergyholdings.com/ (June 2017)

http://www.cpw.gr/en/ (June 2017)

http://www.cablel.com/ (June 2017)

2) http://www.fbrh.co.uk/en/global-reporting-initiative-gri-g4-guidelines-download-page

3) https://g4.globalreporting.org/Pages/default.aspx

4) https://www.globalreporting.org/standards/gri-standards-download-center/

 

Note to Cenergy Holdings: 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.