Case study: How Centamin creates economic value for its stakeholders
Centamin is an established gold producer, committed to developing resources in a way that protects and empowers people, respects human rights, fosters socio-economic development and safeguards the environment. Centamin contributes to the wealth and prosperity of the countries, regions and communities where it operates by generating long-term, sustainable socio-economic value.
This case study is based on the 2022 Sustainability Report by Centamin, 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, Centamin’s direct economic contributions totalled US$848 million. Tweet This! In order to create economic value for its stakeholders Centamin took action to:
- create economic value for employees
- create economic value for capital providers
- create economic value for the government
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) Centamin has identified;
- How Centamin proceeded with stakeholder engagement, and
- What actions were taken by Centamin 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 Centamin identified a range of material issues, such as workforce health and safety, emissions, anti-corruption, market presence, environmental compliance. Among these, creating economic value for its stakeholders stands out as a key material issue for Centamin.
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 Centamin engages with:
| Stakeholder Group | Method of engagement (Inform) |
| Employees | · Daily pre-shift and toolbox meetings · Routine management review meetings · Quarterly risk and HSES reviews · Performance appraisals · Training and skill development · Grievance mechanism and whistleblowing platform · Bulletins, intranet and notice boards · Social and cultural events |
| Government | · Formal and informal engagement with government agencies and regulators · Routine site visits and regulatory inspections · Budgets and operational reports · Audits and assurance · Payments to government – profit share, royalties, licence fees and taxes |
| Communities | · Formal and informal engagement with community leaders · Community investment and development planning · Community perceptions survey · Community grievance mechanism · Social and cultural events |
| Shareholders | · Regulatory announcements and press releases on material performance, including quarterly operational and sustainability reporting and biannual financial reporting · Regular market presentations, investor conferences and open market dialogue · AGM and one-on-one meetings · Annual and regulatory reports · Engagement with proxy advisory groups and shareholder stewardship teams |
| Suppliers, contractors &refiner | · Open dialogue and regular meetings with onsite management teams · Routine contract review and compliance checks · Supply chain due diligence · Training, site inspections and felt leadership · Tendering and procurement procedures |
| Environment | · Environmental baseline studies and impact assessment · Environmental impact mitigation, monitoring and assurance · Partnerships with community-based organisations and research institutes |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Centamin engaged with its stakeholders through a survey.
What actions were taken by Centamin to create economic value for its stakeholders?
In its 2022 Sustainability Report Centamin reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2022, Centamin paid US$66 million in employee wages and benefits.
- Creating economic value for capital providers
- In 2022, Centamin paid US$45,7 million to capital providers.
- Creating economic value for the government
- In 2022, Centamin paid US$62 million in profit share, royalties, taxes and other payments to government.
- Creating economic value for communities
- In 2022, Centamin spent US$0.60 million 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 Centamin, 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.centamin.com/media/2969/cey_sr22_sustainabilityreport_final_250423.pdf
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