Case study: How Equitrans creates economic value for its stakeholders
Equitrans Midstream Corporation (Equitrans) is a publicly traded midstream services company with a premier asset footprint across the Appalachian Basin in Pennsylvania, Ohio, and West Virginia. Equitrans delivers clean, affordable domestic energy, supports economic development in local communities, creates jobs and generates tax revenue to support state and local governments Tweet This!, all of which positively contribute to the U.S. economy and local economies.
This case study is based on the 2020 Corporate Sustainability Report by Equitrans 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
Equitrans creates value for its shareholders as well as the communities in which it operates and is proud of the beneficial economic impact it has on these communities, through factors such as job creation and tax revenue generation. In order to create economic value for its stakeholders Equitrans took action to:
- contribute to the national economy
- support ancillary jobs
- generate tax revenue
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With this case study you will see:
- Which are the most important impacts (material issues) Equitrans has identified;
- How Equitrans proceeded with stakeholder engagement, and
- What actions were taken by Equitrans 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 Equitrans identified a range of material issues, such as air emissions and climate change, business ethics and integrity, occupational health and safety, diversity and inclusion. Among these, creating economic value for its stakeholders stands out as a key material issue for Equitrans.
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 Equitrans engages with:
| Stakeholder Group |
| Community Members |
| Contractors |
| Financial Research Analysts |
| First Responders |
| Government Officials and Agencies |
| Landowners |
| Shareholders |
| Suppliers |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Equitrans used a third-party ESG (environmental, social and governance) risk management software platform to collect and evaluate evidence from key external stakeholders (e.g. customers, administrators/standards, investors, non-governmental organisations, and suppliers).
What actions were taken by Equitrans to create economic value for its stakeholders?
In its 2020 Corporate Sustainability Report Equitrans reports that it took the following actions for creating economic value for its stakeholders:
- Contributing to the national economy
- In 2019, Equitrans contributed $2.66 billion in value-added contributions to the United States Gross Domestic Product (GDP), excluding activities related to the Mountain Valley Pipeline (MVP). For Equitrans’ business, 54.7 percent of this contribution is a result of its operational activities in its three primary operating states of Pennsylvania, Ohio, and West Virginia, with another 4.3 percent coming from operations elsewhere in the United States. The remaining 41.1 percent of Equitrans’ contribution is associated with its business with suppliers that provide the products and services Equitrans utilises in its operations. Equitrans’ direct business activities contributed $470 million to the GDP, while its indirect impact as a result of its business with its suppliers contributed $532 million to the GDP. Lastly, Equitrans’ total induced economic impact, or the personal spending of its employees, contractors, and suppliers, contributed $1,656 million to the GDP.
- Supporting ancillary jobs
- Equitrans’ business activities supported 33,100 ancillary jobs in 2019, excluding any ancillary jobs related to the MVP project, in addition to its own 801 employees as of year-end 2019. These ancillary jobs include people who contribute to the successful operation of construction projects as well as Equitrans’ gathering, transmission and storage, and water services as contractors and suppliers.
- Generating tax revenue
- Equitrans’ business generated millions in state and local tax revenues in 2019, excluding taxes related to the MVP project. These generated revenues support state and local governments and public resource enhancing operations, such as road construction and maintenance, and school funding.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standards addressed in this case are:
1) Disclosure 201-1 Direct economic value generated and distributed
2) Disclosure 203-2 Significant indirect economic impacts
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
Disclosure 203-2 Significant indirect economic impacts corresponds to:
- Sustainable Development Goal (SDG) 1: No Poverty
- Targets: 1.2, 1.4
- Sustainable Development Goal (SDG) 3: Good Health and Well-Being
- Targets: 3.8
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.2, 8.3, 8.5
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References:
1) This case study is based on published information by Equitrans, 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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