Case study: How CN creates economic value for its stakeholders
CN is a leading North American transportation and logistics company offering fully integrated rail and other transportation services, with a 19,500-mile network that spans Canada and Mid-America, connecting ports on three coasts. As a major employer of nearly 23,000 people in North America, CN contributes to the wealth and prosperity of the communities and regions where it operates Tweet This! through spending on goods and services, positive shareholder returns, tax contributions to the different levels of government, and community investments.
This case study is based on the 2020 Sustainability Report by CN, 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
CN’s strategic long-term approach to investments, together with its continued focus on efficiency and deployment of innovative technology, as well as its commitment to enabling trade, position it to keep delivering long-term value to all its stakeholders. In order to create economic value for its stakeholders CN took action to:
- create economic value for employees
- create economic value for suppliers
- create economic value for shareholders
- create economic value for governments
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) CN has identified;
- How CN proceeded with stakeholder engagement, and
- What actions were taken by CN to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020 Sustainability Report CN identified a range of material issues, such as climate change, operational safety, customer service and satisfaction, safety culture and management. Among these, creating economic value for its stakeholders stands out as a key material issue for CN.
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 CN engages with:
| Stakeholder Group | Method of engagement |
| Investors
| · Earnings calls · Non-deal roadshows · Sell-side-sponsored conferences · Investor meetings |
| Customers | · Agricultural Advisory Council |
| Governments
| · Participation in advisory councils, review boards and regulatory proceedings |
| Employees
| · Communication through both formal and informal channels · Employee Engagement Survey |
| Employees
| · Meetings · |
| Suppliers
| · Annual supplier council · Sustainable Procurement Excellence programme |
| Communities
| · Participation in industry associations · Community boards |
| Indigenous peoples | · Participation in Indigenous organisations · Indigenous Advisory Council |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics CN engaged with its stakeholders through an electronic survey among employees, suppliers, governments, railway associations, customers, investors, unions, Aboriginal peoples, community groups, and NGOs, receiving input from 378 stakeholders.
What actions were taken by CN to create economic value for its stakeholders?
In its 2020 Sustainability Report CN reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2020, CN paid $2.7B for employee wages and salaries.
- Creating economic value for suppliers
- In 2020, CN paid $3.3B to suppliers.
- Creating economic value for shareholders
- In 2020, CN paid $2B to shareholders.
- Creating economic value for governments
- In 2020, CN paid $353M to governments (tax payments).
- Creating economic value for communities
- In 2020, CN spent $12M in community sponsorships and donations.
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 CN, 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.cn.ca/en/delivering-responsibly/
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