Case study: How IndiGo creates economic value for its stakeholders
InterGlobe Aviation Limited (IndiGo) is a leading air transportation system in India providing air connectivity to 73 Indian communities and cities for tens of millions of, primarily Indian, citizens, with the largest aircraft fleet in India serving domestic and international markets in and out of India. As an organisation, IndiGo believes that integrating ESG is critical to not only its operations, but also for creating shared value for all its stakeholders.
This case study is based on the 2021-22 ESG Report by IndiGo, 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
Generating, through its operations, sustainable value for employees, providers of capital and all its stakeholders, is a top priority for IndiGo. Tweet This! In order to create economic value for its stakeholders IndiGo took action to:
- create economic value for employees
- create economic value for providers of capital
- create economic value for governments
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) IndiGo has identified;
- How IndiGo proceeded with stakeholder engagement, and
- What actions were taken by IndiGo to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021-22 ESG Report IndiGo identified a range of material issues, such as ethical business conduct, climate change, workplace health and safety, customer privacy. Among these, creating economic value for its stakeholders stands out as a key material issue for IndiGo.
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 IndiGo engages with:
To identify and prioritise material topics IndiGo engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Customers | · Advertisements · Social media · Customer experience surveys · Company website · Mobile application |
| Investors and Shareholders
| · Investor calls · Non-deal road shows · Periodic reports on company website |
| Employees
| · Email, SMS · Company website · Intranet · Town hall meetings · Employee satisfaction surveys |
| Government and Regulators | · Company website · Meetings and representations |
| Civil Society and NGOs | · Mails, calls · Community meetings |
| Industry and Trade Associations | · Industry conference and trade fairs · |
| Suppliers and Partners
| · Dealer meets · Regular meetings · Periodic audits · Know-Your-Customer (KYC) |
What actions were taken by IndiGo to create economic value for its stakeholders?
In its 2021-22 ESG Report IndiGo reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In FY 2021-22, IndiGo paid ₹ 34,864.43 million for employee wages and benefits.
- Creating economic value for providers of capital
- In FY 2021-22, IndiGo paid ₹ 23,580.15 million to providers of capital.
- Creating economic value for governments
- In FY 2021-22, IndiGo paid ₹ 4.12 million to governments.
- Creating economic value for communities
- In FY 2021-22, IndiGo spent ₹ 2.69 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 IndiGo, 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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