Case study: How FortisBC creates economic value for its stakeholders
FortisBC is in the business of providing energy solutions that contribute to a better British Columbia, delivering safe, reliable and affordable natural gas, electricity and propane – as well as renewable and low-carbon gases – to 1.2 million customers across the province. Generating, through its operations, long-term value for all its stakeholders, is a top priority for FortisBC. Tweet This!
This case study is based on the 2022 Sustainability Report by FortisBC, 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
FortisBC constantly seeks to establish meaningful relationships with its stakeholders, and create sustainable value for all. In order to create economic value for its stakeholders FortisBC 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 communities
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With this case study you will see:
- Which are the most important impacts (material issues) FortisBC has identified;
- How FortisBC proceeded with stakeholder engagement, and
- What actions were taken by FortisBC to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2022 Sustainability Report FortisBC identified a range of material issues, such as energy transition and innovation, community engagement and investment, emergency preparedness and response, labour practices and workforce human rights. Among these, creating economic value for its stakeholders stands out as a key material issue for FortisBC.
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 FortisBC engages with:
| Stakeholder Group | Method of engagement |
| Local communities
| · charitable donations and sponsorships · charitable activities and events · partnerships with educational institutions · community and project consultation programmes · membership and participation in local Boards of Trade and Chambers of Commerce · employees serving on non-profit boards · employee volunteerism · active economic participation |
| Indigenous communities
| · activities and events · partnerships with educational institutions and mentorship, internship and scholarship programmes · resource planning workshops · donations and sponsorships · community and project consultation programmes · membership and participation in local Indigenous trades and training organisations · participation as a member of the Canadian Council for Aboriginal Businesses and maintaining FortisBC’s status as a Progressive Aboriginal Relations Committed member · active economic participation · Indigenous awareness training |
| Customers
| · energy efficiency programmes · customer service delivery · community outreach and Street team · community education programmes—school and public safety · customer bills, bill inserts and emails · Energy Moment monthly newsletter · customer surveys · websites · social media |
| Employees
| · departmental and team meetings · various leadership connections · employee-run groups and committees · corporate campaigns and events · formal process for concerns · union relations (IBEW local 213, MoveUP local 378) · employee and leadership development programmes and offerings · cross-utility working groups · safety meetings and safety moments · performance management discussions, including succession planning · employee communications (CEO updates and safety newsletter) |
| Regulatory and government
| · focus on constructive regulatory relationships · participation in public policy and legislative consultations · providing responses to general industry requests from regulators · regular regulatory and government outreach · participate in industry associations and advisory groups |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics FortisBC engaged with more than 80 stakeholders comprised of internal business leaders and external groups including customers, municipalities, Indigenous and community partners, businesses and industry, government and regulators. Participants were asked to prioritise the most significant Environment, Social and Governance (ESG) issues and assess their impacts on FortisBC’s business, as well as FortisBC’s ability to facilitate improved outcomes.
What actions were taken by FortisBC to create economic value for its stakeholders?
In its 2022 Sustainability Report FortisBC reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2022, FortisBC paid $342 million for employee wages and benefits.
- Creating economic value for providers of capital
- In 2022, FortisBC paid $411 million to providers of capital.
- Creating economic value for the government
- In 2022, FortisBC paid $622 million to the government.
- Creating economic value for communities
- In 2022, FortisBC spent $4.5 million in community investments.
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 FortisBC, 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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