Case study: How Epiroc creates economic value for its stakeholders
Epiroc is a leading productivity and sustainability partner for customers within mining and infrastructure, developing and providing innovative and safe equipment, such as drill rigs, rock excavation and construction equipment and tools for surface and underground applications. Epiroc creates value for its stakeholders by conducting responsible business, while seeking to achieve sustainable profitable growth.
This case study is based on the 2020 Annual and Sustainability Report by Epiroc, 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
Epiroc is firmly committed to generating and distributing sustainable economic value for all its stakeholders Tweet This!, as a trusted, reliable partner. In order to create economic value for its stakeholders Epiroc took action to:
- create economic value for employees
- create economic value for providers of capital
- create economic value for governments
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With this case study you will see:
- Which are the most important impacts (material issues) Epiroc has identified;
- How Epiroc proceeded with stakeholder engagement, and
- What actions were taken by Epiroc to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020 Annual and Sustainability Report Epiroc identified a range of material issues, such as product safety, human rights, CO2 emissions products, employee care and empowerment, crisis management. Among these, creating economic value for its stakeholders stands out as a key material issue for Epiroc.
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 Epiroc engages with:
To identify and prioritise material topics Epiroc engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Customers | · Meetings · Interaction via customer centres · Joint projects · Exhibitions · Customer surveys · Materiality assessment |
| Employees | · Workplace meetings · Management meetings · Internal councils · Employee surveys · Performance review · Trade unions and other cooperation councils · Employee engagements · Materiality assessment |
| Shareholders | · Investors and analysts’ meetings · Capital Market Days · Website · Annual and sustainability report · Questionnaires and surveys · Materiality assessment |
| Business partners
| · Business partners evaluations and audits · Procurements · Meetings · Materiality assessment · Joint projects · Development projects |
| Society
| · Meetings · Stakeholder dialogues · Participation in industry groups · Research projects · Materiality assessment · Collaboration with academia and governments · Interaction with industry peers |
What actions were taken by Epiroc to create economic value for its stakeholders?
In its 2020 Annual and Sustainability Report Epiroc reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- Its people contribute to making Epiroc a great place to work, based on a shared culture of performance rooted in diversity, trust and employee care. In 2020, Epiroc paid MSEK 7,881 for employee wages and benefits, including other social costs.
- Creating economic value for providers of capital
- In 2020, Epiroc paid MSEK 3,340 to providers of capital (including financial costs and dividends).
- Creating economic value for governments
- In 2020, Epiroc spent MSEK 1,848 in direct taxes to governments.
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 Epiroc, 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.epirocgroup.com/en/sustainability/annual-and-sustainability-reports
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