Case study: How IGO creates economic value for its stakeholders
IGO Limited is an ASX 100 listed Company focused on creating a better planet for future generations by discovering, developing and delivering products critical to clean energy. IGO is a purpose-led organisation with strong, embedded values and a culture of caring for its people and its stakeholders, generating sustainable value for all. Tweet This!
This case study is based on the 2022 Sustainability Report by IGO, 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
As IGO seeks to deliver returns to its shareholders, it also considers the value creation it can offer to its diverse range of stakeholders, including employees, suppliers and others. In order to create economic value for its stakeholders IGO took action to:
- create economic value for employees
- create economic value for the government
- create economic value for suppliers
- create economic value for Aboriginal owned or managed businesses
- create economic value for communities
- create economic value for Ngadju people
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With this case study you will see:
- Which are the most important impacts (material issues) IGO has identified;
- How IGO proceeded with stakeholder engagement, and
- What actions were taken by IGO 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 IGO identified a range of material issues, such as safety, health & wellbeing of its people, climate change & decarbonisation, governance & risk management, ethics, integrity & behaviours. Among these, creating economic value for its stakeholders stands out as a key material issue for IGO.
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 IGO engages with:
| Stakeholder Group |
| Employees |
| Traditional Owners and neighbouring communities |
| Suppliers and contractors |
| Customers |
| Governments and regulators |
| Shareholders, investors and analysts |
| Joint venture partners |
| Non-government organisations |
| Special interest groups |
| Civil society |
| Learning and research partners |
| Peers and industry associations |
| Media |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics IGO engaged with its stakeholders through surveys, interviews and reviews of publicly available materials.
What actions were taken by IGO to create economic value for its stakeholders?
In its 2022 Sustainability Report IGO reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In FY22, IGO paid $ 75.8 million for employee salaries and wages.
- Creating economic value for the government
- In FY22, IGO paid $ 215.9 million in tax, state royalties and other government payments.
- Creating economic value for suppliers
- In FY22, IGO paid $ 287.4 million to suppliers.
- Creating economic value for Aboriginal owned or managed businesses
- In FY22, IGO spent $ 8.0 million on Aboriginal owned or managed businesses.
- Creating economic value for communities
- In FY22, IGO spent $ 0.7 million in corporate giving investment.
- Creating economic value for Ngadju people
- In FY22, IGO paid $ 6.5 million to Ngadju people.
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 IGO, 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.igo.com.au/site/pdf/bb31abd5-2374-460e-ada3-96f2cad3abaa/2022-Sustainability-Report.pdf
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