Case study: How HAESL creates economic value for its stakeholders
Hong Kong Aero Engine Services Limited (HAESL) provides world-class aero engine and component repair services to many of the world’s most respected airlines that have chosen Rolls-Royce to power their fleet of Airbus and Boeing aircraft. HAESL’s vision is to share long-term value with its stakeholders, through the sustainable development of its business. Tweet This!
This case study is based on the 2021 Sustainable Development Report by HAESL, 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.
Sustainable Development is one of HAESL’s core strategic objectives, to enable long term value creation for its shareholders and other stakeholders. In order to create economic value for its stakeholders HAESL took action to:
- create economic value for employees
- create economic value for shareholders
- create economic value for the state
- create economic value for communities
Subscribe for free and read the rest of this case study
Please subscribe to the SustainCase Newsletter to keep up to date with the latest sustainability news and gain access to over 2000 case studies. These case studies demonstrate how companies are dealing responsibly with their most important impacts, building trust with their stakeholders (Identify > Measure > Manage > Change).
With this case study you will see:
- Which are the most important impacts (material issues) HAESL has identified;
- How HAESL proceeded with stakeholder engagement, and
- What actions were taken by HAESL to create economic value for its stakeholders
Already Subscribed? Type your email below and click submit
What are the material issues the company has identified?
In its 2021 Sustainable Development Report HAESL identified a range of material issues, such as staff occupational health and safety, socioeconomic compliance, anti-corruption, environmental compliance, customer health and safety. Among these, creating economic value for its stakeholders stands out as a key material issue for HAESL.
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 s 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 HAESL engages with:
| Stakeholder Group |
| Employees (including managerial staff and general staff) |
| Board Members |
| Shareholders |
| Customers |
| Suppliers and business partners |
| Organisations from HAESL’s local community |
| Government authorities |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics HAESL engaged with its stakeholders through face-to-face interviews or email questionnaires.
What actions were taken by HAESL to create economic value for its stakeholders?
In its 2021 Sustainable Development Report HAESL reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, HAESL paid US$M 56.2 in employee costs.
- Creating economic value for shareholders
- In 2021, HAESL paid US$M 62.6 in dividends.
- Creating economic value for the state
- In 2021, HAESL paid US$M 15.5 in taxes.
- Creating economic value for communities
- In 2021, HAESL paid USD 74,838 in charitable donations.
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
SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.
Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.
7 GRI sustainability disclosures get you started
Any size business can start taking sustainability action
GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom (venue: London School of Economics)
- Exclusive FBRH template to begin reporting from day one
- Identify your most important impacts on the Environment, Economy and People
- Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP.
- Benchmarking methodology to set you on a path of continuous improvement
See upcoming training dates.
References:
This case study is based on published information by HAESL, 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.haesl.com/Media/1778/2021-sd-report-eng.pdf
Note to HAESL: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.