Case study: How Huntsman creates economic value for its stakeholders
Headquartered in The Woodlands, Texas, Huntsman Corporation is a global downstream, differentiated, and specialty chemicals company with operations in approximately 30 countries. Huntsman constantly seeks to generate sustainable, long-term value for employees, providers of capital, and all its other stakeholders. Tweet This!
This case study is based on the 2021 Sustainability Report by Huntsman, 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
Huntsman engages with its stakeholders to identify actual and potential impacts of its operations, also creating, in the context of its activities, shared value for every stakeholder. In order to create economic value for its stakeholders Huntsman 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) Huntsman has identified;
- How Huntsman proceeded with stakeholder engagement, and
- What actions were taken by Huntsman to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Sustainability Report Huntsman identified a range of material issues, such as diversity, equity, and inclusion, energy management, workforce health and safety, waste management, cybersecurity. Among these, creating economic value for its stakeholders stands out as a key material issue for Huntsman.
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 Huntsman engages with:
To identify and prioritise material topics Huntsman engaged with its stakeholders through the following channels:
Stakeholder Group | Method of engagement |
Employees | · EHS Scorecards · Sustainability Report · Training · EHS Conferences · CEO Awards · Huntsman Intranet · Global Emails |
Contractors | · Site EHS Leadership · Division EHS Business Partners · Purchasing/Contracts |
Huntsman Board of Directors
| · EHS Scorecards · Sustainability Report · Quarterly Meetings/Reviews |
Investment Community
| · Investor analytics reporting (e.g., MCSI, Sustainalytics, EcoVadis, ISS) · Sustainability Report · Disclosures on Climate (CDP) · Horizon 2025 Targets |
Customers
| · Product Information (Material Safety Data Sheets, Labelling) · Product Safety Summaries · Sustainability Report · Sales Contact |
Suppliers
| · Vendor Code of Conduct · Ethics Screening · PEHS Supplier Questionnaire · Vendor Safety Data Sheet (SDS) System |
Community (at Large)
| · Huntsman Website · Social Media · Sustainability Report · Horizon 2025 Targets |
Community (Near Neighbours) | · Corporate Crisis Plan · Site Emergency Response Plans · Community Advisory Panels · Chambers of Commerce · Fire Department Tours · Local Emergency Planning Committees · Phone Contact · Social Media · Huntsman Website |
Regulatory Agencies | · Direct Engagement with Regulators |
Government Officials
| · Sustainability Report · Government Affairs Team |
Chemical Industry Affiliates
| · Sustainability Report · Membership Reporting (ACC) · ACC Committee Involvement |
What actions were taken by Huntsman to create economic value for its stakeholders?
In its 2021 Sustainability Report Huntsman reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Huntsman paid USD 949 million for employee wages and benefits.
- Creating economic value for providers of capital
- In 2021, Huntsman paid USD 226 million to providers of capital.
- Creating economic value for the government
- In 2021, Huntsman paid USD 209 million to the government.
- Creating economic value for communities
- In 2021, Huntsman spent USD 2 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 Huntsman, 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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