Case study: How Cloetta creates economic value for its stakeholders
Cloetta, founded in 1862, is a leading confectionery company in Northern Europe, whose products are sold in more than 50 countries worldwide with Sweden, Finland, Denmark, Norway, the Netherlands, Germany and the UK as the main markets. The manufacturing and sales of Cloetta’s products generate sustainable economic value, that benefits all its stakeholders.
This case study is based on the 2021 Annual and Sustainability Report by Cloetta, 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.
Creating long-term value for its stakeholders, is fundamental to Cloetta’s continued success and growth. Tweet This! In order to create economic value for its stakeholders Cloetta took action to:
- create economic value for employees
- create economic value for suppliers
- create economic value for shareholders
- create economic value for creditors and financial partners
- create economic value for the state
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With this case study you will see:
- Which are the most important impacts (material issues) Cloetta has identified;
- How Cloetta proceeded with stakeholder engagement, and
- What actions were taken by Cloetta to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Annual and Sustainability Report Cloetta identified a range of material issues, such as climate action, food safety, consumer health, human & labour rights in the supply chain, less and better packaging. Among these, creating economic value for its stakeholders stands out as a key material issue for Cloetta.
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 Cloetta engages with:
To identify and prioritise material topics Cloetta engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Customers and consumers
| · With consumers via annual surveys and via websites and social media · With customers through in-person (or online) customer and sales meetings three times per year, and via customer surveys and collaborative initiatives for eco-efficient transportation |
| Employees, Board & Management
| · Daily meetings to discuss occupational health and safety in the factories · Annual performance reviews with all employees · Systematic skills development · Up-to-date information provided monthly, e.g. via managers, union representatives and Cloetta’s intranet · Employee survey “Cloetta Engagement survey” every other year |
| Shareholders and investors
| · Analyst and investor meetings · Interim reports · Annual general meeting · Annual and Sustainability Report · Cloetta’s website |
| Suppliers
| · Annual evaluation of suppliers’ performance · Audits · Development projects · Collaborative projects for sustainability |
| Communities and the public
| · Continuous contact with the local communities/ municipalities close to Cloetta’s factories with regard to the local environment · Annual audits by certification bodies for ISO, BRC, RSPO and UTZ/RA · Continuous contact with key opinion leaders |
| Regulatory authorities
| · Continuous contact with public authorities in areas related to workplace health and safety, environmental and product |
What actions were taken by Cloetta to create economic value for its stakeholders?
In its 2021 Annual and Sustainability Report Cloetta reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Cloetta spent 24% of its distributed value (SEK 5,529m) in personnel expenses.
- Creating economic value for suppliers
- In 2021, Cloetta paid 44% of its distributed value (SEK 5,529m) to suppliers of raw materials and consumables and 25% to other suppliers.
- Creating economic value for shareholders
- In 2021, Cloetta paid 4% of its distributed value (SEK 5,529m) to shareholders.
- Creating economic value for creditors and financial partners
- In 2021, Cloetta paid 1% of its distributed value (SEK 5,529m) to creditors and financial partners.
- Creating economic value for the state
- In 2021, Cloetta paid 2% of its distributed value (SEK 5,529m) in corporate income tax.
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 Cloetta, 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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