Case study: How Eldorado Brasil creates economic value for its stakeholders
Founded in 2012, Eldorado Brasil is one of the largest and most modern eucalyptus pulp companies in the world, with 5,366 employees and more than 390 thousand hectares, of which approximately 249 thousand have planted forests. Eldorado Brasil is committed to sustainable growth and long-term value sharing with all its stakeholders. Tweet This!
This case study is based on the 2021 Sustainability Report by Eldorado Brasil, 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 2021, the economic value distributed by Eldorado Brasil reached R$ 3,037,803.00. In order to create economic value for its stakeholders Eldorado Brasil took action to:
- create economic value for employees
- create economic value for providers of capital
- create economic value for the government
- create economic value for shareholders
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With this case study you will see:
- Which are the most important impacts (material issues) Eldorado Brasil has identified;
- How Eldorado Brasil proceeded with stakeholder engagement, and
- What actions were taken by Eldorado Brasil to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Sustainability Report Eldorado Brasil identified a range of material issues, such as forestry certifications and good practices, biodiversity, innovation and technology, diversity and equal opportunity. Among these, creating economic value for its stakeholders stands out as a key material issue for Eldorado Brasil.
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 Eldorado Brasil engages with:
To identify and prioritise material topics Eldorado Brasil engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Communities and civil society
| · Calendar of periodic meetings with neighbours and the community · Social programmes, including vegetable gardens, training courses for the surrounding communities and smallholder settlements · Continuous outreach via communication channels, availability of a centre to receive community requests and complaints, availability of an Ethics Hotline |
| Customers
| · Hold meetings, forums and commercial events with customers during the course of the year · Provide a channel for customer complaints on the Eldorado Brasil website · Monitor and manage concerns raised by business partners |
| Government and industry associations
| · A schedule of periodic meetings, working with partners on infrastructure and centres to receive requests. Regular participation in working groups and surveys to create improvements for the region |
| NGOs and Forums
| · Participate in meetings, forums and industry and NGO working groups to discuss public policies and topics relevant for industry development, seeking sustainable development · Members of the WWF MS Forum, and signatories of the UN Global Compact and the Brazil Climate Coalition. Members of Instituto Ethos de Empresas e Responsabilidade Social, and active members of FSC International, IBÁ – Indústria Brasileira de Árvores, ABTCP (the Brazilian Pulp and Paper Association), REFLORE (the Association of Mato Grosso do Sul Reforestation Companies) and IPEF (Institute for Forestry Studies and Research) |
| Suppliers | · Code of Conduct and Ethics |
| Shareholders and investors
| · Maintain close and frequent relationships with shareholders, primarily via phone or video-calls (Microsoft Teams) · Manage concerns reported by shareholders and share information on business results and operating performance |
| Employees
| · Periodic communications on results, collective bargaining agreements, internal communications via Intranet, internal memos, periodic newsletters, PA systems on shuttle buses, and visual management dashboards · Training and skills building, communication of job openings and internal recruiting, compensation and benefits · Offering performance incentives such as rewards for innovation projects and variable compensation programmes · Monitor concerns reported by employees to ensure the continued growth and development of the workforce, while also improving quality of life for Eldorado Brasil’s people and their families |
| Forestry Partners
| · Annual meeting with forest partners and telephone contacts |
What actions were taken by Eldorado Brasil to create economic value for its stakeholders?
In its 2021 Sustainability Report Eldorado Brasil reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Eldorado Brasil paid R$ 386,389.00 for employee wages and benefits.
- Creating economic value for providers of capital
- In 2021, Eldorado Brasil paid R$ 1,165,247.00 to providers of capital.
- Creating economic value for the government
- In 2021, Eldorado Brasil paid R$ 606,405.00 to the government.
- Creating economic value for shareholders
- In 2021, Eldorado Brasil paid R$ 879,762.00 in interest on equity.
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 Eldorado Brasil, 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.eldoradobrasil.com.br/wp-content/uploads/2022/12/sustainability-report-2021-eldorado.pdf
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