Case study: How Crescent Point creates economic value for its stakeholders
Established in 2001, Crescent Point Energy is a leading North American oil producer based in Calgary, Alberta, whose mission is to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner. Creating economic value for its stakeholders and, most importantly, contributing to community prosperity through project development, job creation and community investment, is a top priority for Crescent Point.
This case study is based on the 2019 Sustainability Report by Crescent Point published on the Global Reporting Initiative Sustainability Disclosure Database 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
Crescent Point seeks to generate, through its business operations, sustained economic value for a wide range of stakeholders Tweet This!, including employees, providers of capital and communities. In order to create economic value for its stakeholders Crescent Point took action to:
- create economic value for communities
- create economic value for governments, providers of capital and employees
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With this case study you will see:
- Which are the most important impacts (material issues) Crescent Point has identified;
- How Crescent Point proceeded with stakeholder engagement, and
- What actions were taken by Crescent Point to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2019 Sustainability Report Crescent Point identified a range of material issues, such as safe operations, GHG emissions, governance and ethics, spills. Among these, creating economic value for its stakeholders stands out as a key material issue for Crescent Point.
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 Crescent Point engages with:
| Stakeholder Group | Method of engagement |
| Employees
| · Annual employee survey · Quarterly town halls by the CEO accessible by all staff · Annual sign-off of corporate policies · Annual employee career progression and evaluation process · Ongoing safety training for all workers · Intranet for up-to-date communications |
| Shareholders
| · Quarterly and ad hoc press releases and earnings conference calls open to all investors · Attend multiple conferences and independent meetings with investors · Annual General Meeting (AGM) open to all shareholders · Quarterly update meetings with research analysts |
| Communities
| · Biennial distribution of public awareness brochures in all emergency planning zones (EPZs) · Training for local emergency response personnel · Proactive communication and consultations regarding access to resources (water), abandonments and road use · 24-hour emergency number · Online donation request application coupled with local donation committees |
| Government & Regulatory Bodies
| · Dedicated government relations staff · Participation in public policy and regulatory discussions, where applicable · Consultation on new projects and proposals |
| Suppliers and Contractors
| · Safety meetings and emergency response plan (ERP) drills for staff and contractors · ‘Doing Business with Us’ page pre-screen on Crescent Point’s website · Clear safety expectations through master service agreements and pre-qualification process |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Crescent Point consulted with 24 individuals representing multiple stakeholder groups (investors, communities, Indigenous communities, landowners, regulators, contractors and employees), with each of the individuals providing feedback and a measure of their level of interest.
What actions were taken by Crescent Point to create economic value for its stakeholders?
In its 2019 Sustainability Report Crescent Point reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for communities
- Crescent Point plays a role in the economic strength of its communities. When they prosper, Crescent Point does too. Through the payment of royalties and taxes, providing local employment and investing time and funding for local charities and non-profit organisations, Crescent Point contributes to the overall strength and sustainability of the communities where it operates. Additionally, Crescent Point recognises both the economic and social benefits of hiring staff and suppliers local to its operations and does so whenever possible. In 2019, Crescent Point worked with over 3,000 suppliers, the majority of whom were hired locally.
- Creating economic value for governments, providers of capital and employees
- The economic value distributed by Crescent Point to governments includes crown royalties, resource surcharges, production taxes, property taxes, business taxes and licenses, income taxes, interest and penalties and provincial and other sales taxes on operating costs. The economic value distributed to providers of capital includes interest expense and dividends paid, while the economic value distributed to employees includes salaries, bonuses, benefits and cash share-based compensation paid to both field and office employees.
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:
1) This case study is based on published information by Crescent Point, 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 original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:
http://database.globalreporting.org/
2) https://www.globalreporting.org/standards/gri-standards-download-center/
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