Case study: How GAIL creates economic value for its stakeholders
With a distinguished history of 38 years, GAIL (India) Limited began its journey in August 1984 and today stands with much pride as the country’s leading natural gas distributor, operating 14,500 km of natural gas pipeline network. Creating a sustainable business model that generates long-term value for its stakeholders, is a top priority for GAIL. Tweet This!
This case study is based on the 2021-22 Sustainability Report by GAIL, 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
GAIL’s business strategy and growth plans consider sustainability aspects to make sure that GAIL operates in an environmentally responsible manner and creates sustainable value for all its stakeholders. In order to create economic value for its stakeholders GAIL took action to:
- create economic value for employees
- create economic value for providers of capital
- create economic value for the government
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With this case study you will see:
- Which are the most important impacts (material issues) GAIL has identified;
- How GAIL proceeded with stakeholder engagement, and
- What actions were taken by GAIL to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021-22 Sustainability Report GAIL identified a range of material issues, such as resource optimization (waste, water, energy management), product and service quality, community development (rights of indigenous people, land and resource rights), human capital management (well-being, engagement, diversity and inclusion). Among these, creating economic value for its stakeholders stands out as a key material issue for GAIL.
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 GAIL engages with:
To identify and prioritise material topics GAIL engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Government and other regulators
| · MoUs · Quarterly Progress Report · Annual Report |
| Financial Institutions
| · One on One Meetings with Investors · Attending IR Conferences/ roadshows · Conducting site visits for investment Community · Arranging Conference Calls for Investment Community · Conducting Analyst Meets · Publishing Public disclosures and quarterly results · Conducting Press conferences · Communication with Shareholders and ADR holder |
| Employees
| · Satisfaction surveys · Social Media · Grievance Redressal · Suggestion schemes · CMD open house · Various committees · GAIL Day celebration · Emails, Journals · Meetings with employee associations and unions |
| Suppliers
| · Supplier Meets · Industry Conclave · Access to empowered C&P committee · Vendor development programme/ Vendor coaching programmes · Hand-holding programmes for SC/ ST-owned MSEs · Pre-tender or pre-bid meeting for all tenders · Meets with micro and small enterprises |
| Customers
| · Annual Customer Meet · Zonal Customer Meet · Customer Interactive Meet · Customer Satisfaction Survey |
| Joint Ventures and Subsidiaries of GAIL (India) Limited | · Need-based meetings · Reports and Newsletters
|
| Industry Associations
| · Seminars · Conferences · Industry Expo · Interviews · Reports and Newsletters |
| Communities
| · Meetings and direct interaction · Community events · Needs analysis and Impact Assessments · CSR initiatives · Corporate communications Materials |
| Contractors/ Implementing Agencies | · Need-based meetings · Meets · Website |
| Academic and Research Institutions
| · Project meetings · Periodic reviews · Website · Social media · Press |
| NGOs / Civil Society Organisations | · Project meetings · Annual reviews |
| Public at large
| · Social media campaigns/posts etc. · Community events · CSR initiatives · Corporate communications Materials such as website etc. · Press |
What actions were taken by GAIL to create economic value for its stakeholders?
In its 2021-22 Sustainability Report GAIL reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In FY 2021-22, GAIL paid INR 1951.2 crore for employee wages and benefits.
- Creating economic value for providers of capital
- In FY 2021-22, GAIL paid INR 4344.7 crore to providers of capital.
- Creating economic value for the government
- In FY 2021-22, GAIL paid INR 3226.3 crore to the government.
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
78% of the world’s 250 largest companies report in accordance with the GRI Standards
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References:
This case study is based on published information by GAIL, 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.gailonline.com/pdf/Sustainability/GAILSustainabilityReport202122.pdf
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