Case study: How ERG creates economic value for its stakeholders
ERG is a leading independent operator of clean energy from renewable sources operating in nine countries at European level, the leading wind power operator in Italy and among the top ten in Europe. ERG’s mission is to create long-term, sustainable value for all its stakeholders that support the Group in achieving financial and industrial strength and resilience.
This case study is based on the 2022 Consolidated Non-Financial Statement by ERG, 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
The creation of value over time for all its stakeholders, is a top priority for ERG. Tweet This! In order to create economic value for its stakeholders ERG took action to:
- create economic value for employees
- create economic value for lenders and shareholders
- create economic value for the community
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With this case study you will see:
- Which are the most important impacts (material issues) ERG has identified;
- How ERG proceeded with stakeholder engagement, and
- What actions were taken by ERG to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2022 Consolidated Non-Financial Statement ERG identified a range of material issues, such as climate action, governance, HSE and employees’ care, D&I and human rights. Among these, creating economic value for its stakeholders stands out as a key material issue for ERG.
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 ERG engages with:
| Stakeholder Group | Method of engagement |
| Institutions | · Dedicated meetings, round tables and conferences |
| Shareholders and the Financial Community
| · Shareholders’ Meeting · Webcasts · Press releases · Roadshows · Events related to the presentation of the Business Plan and the ESG Plan · Continuous dialogue with shareholders and investors in general (Shareholder Engagement Policy) |
| People and trade union organisations
| · Activities and tools for training, assessment and internal communication · Question time, group meetings, Christmas parties, family days, team building |
| Local Communities
| · Meetings with local communities in line with ERG’s business · Education projects for future generations on renewable energy and digitalisation |
| Future generations
| · Information and education projects for future generations on renewable energy and digitalisation |
| Media | · Press releases to disclose the Group’s Financial Statements, Business Plan and business activities |
| Suppliers
| · Web platform · Involvement and monitoring on occupational safety and sustainability issues |
| Partners
| · Conferences · Face-to-face meetings · Digital meetings |
| Customers
| · Analysis and sharing of requirements with customers and drafting of contracts (e.g., PPA – Power Purchase Agreement) and/or ‘ad hoc’ solutions |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics ERG engaged with its stakeholders through a survey.
What actions were taken by ERG to create economic value for its stakeholders?
In its 2022 Consolidated Non-Financial Statement ERG reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2022, ERG paid EUR 62 million for staff remuneration and EUR 82 million for remuneration of personnel.
- Creating economic value for lenders and shareholders
- In 2022, ERG paid EUR 29 million in interest paid and other financial expense to service debt and EUR 139 million in dividends.
- Creating economic value for the community
- In 2022, ERG paid EUR 2 million in remuneration for the community.
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 ERG, 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:
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