Case study: How CP creates economic value for its stakeholders
CP provides rail and intermodal transportation services across a 13,000-mile network, servicing major centres in Canada and the U.S. CP seeks to provide superior service to its customers while benefiting communities and the economy, generating sustainable value for all its stakeholders. Tweet This!
This case study is based on the 2020 Corporate Sustainability Report by CP, 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
CP delivers transportation solutions that connect North America and the world, creating long-term sustainable value for its shareholders, all its key stakeholders and the broader economy. In order to create economic value for its stakeholders CP took action to:
- create economic value for employees
- create economic value for providers of capital
- create economic value for the government
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With this case study you will see:
- Which are the most important impacts (material issues) CP has identified;
- How CP proceeded with stakeholder engagement, and
- What actions were taken by CP to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020 Corporate Sustainability Report CP identified a range of material issues, such as emergency preparedness, public safety, energy consumption and efficiency, asset and rail network management. Among these, creating economic value for its stakeholders stands out as a key material issue for CP.
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 CP engages with:
| Stakeholder Group | Method of engagement |
| Investors
| · Actively engage with the broader investment community throughout the year, including current and prospective investors, analysts, advocacy groups and bond rating agencies |
| Employees
| · CEO Town Hall meetings multiple times a year · Biennial pulse surveys for measuring employee engagement · Women on Track panel discussions to promote diversity and inclusion in the workplace |
| Customers
| · Customer Advisory Panel · Customer surveys · Hazardous materials shippers emergency planning and response networks (TransCAER, Responsible Care) |
| Municipalities and Indigenous Communities
| · Community Connect online platform, available 24/7 · Regular sponsorships and participation in Indigenous events · Direct engagement during project development · CP Police Service interface, as needed · Annual community first responder trainings · Corporate giving activities and sponsorships |
| Suppliers | · New product development, as needed · Periodic safety and quality audits |
| Trade Associations | · Active participation in strategic trade associations · Direct engagement through association committees to enhance rail industry safety, environmental and operations practices |
| Regulators and Governments | · Participation in multi-stakeholder initiatives · Direct engagement with federal, state and provincial level agencies regarding rail and transportation sector initiatives |
| Academic Institutions
| · Support for aligned research activities · Collaboration on rail sector training programmes |
| Non-Governmental Organisations | · Knowledge sharing, program funding and partnerships |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics CP engaged with its stakeholders through a series of interviews.
What actions were taken by CP to create economic value for its stakeholders?
In its 2020 Corporate Sustainability Report CP reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2020, CP paid $ 1,560 million for employee compensation and benefits.
- Creating economic value for providers of capital
- In 2020, CP paid 2,367 million to providers of capital.
- Creating economic value for the government
- In 2020, CP paid 708 million in taxes.
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 CP, 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://sustainability.cpr.ca/downloads/2020-CPR-Corporate-Sustainability-Report.pdf
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