Case study: How Investec creates economic value for its stakeholders
Investec is a distinctive bank and wealth manager driven by a commitment to its core philosophies and values, delivering exceptional service to its clients in the areas of banking and wealth management. Investec exists to create enduring worth for all of its stakeholders Tweet This!: its clients, its people and the communities in which it operates.
This case study is based on the 2021 Group sustainability and ESG supplementary report by Investec, 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
Investec seeks to create long-term value for all of its stakeholders and contribute meaningfully to its people, communities and the planet. In order to create economic value for its stakeholders Investec took action to:
- create economic value for employees
- create economic value for the government
- create economic value for shareholders
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) Investec has identified;
- How Investec proceeded with stakeholder engagement, and
- What actions were taken by Investec to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Group sustainability and ESG supplementary report Investec identified a range of material issues, such as business sustainability and response to climate change, cybersecurity, skills training and job creation, compliance with existing and evolving regulatory requirements. Among these, creating economic value for its stakeholders stands out as a key material issue for Investec.
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 Investec engages with:
| Stakeholder Group | Method of engagement |
| Clients | · The board discharges its oversight of client engagement to senior management and client relationship managers, receiving regular updates in board meetings about matters including Investec’s support for clients during the COVID-19 pandemic · Client engagement methods have evolved during the COVID-19 pandemic, with face-to-face meetings becoming less frequent and a greater reliance on digital platforms and services · Comprehensive website and app · Regular telephone and email communications · Industry relevant events and client marketing events, both of which have moved to online platforms while most people continue to work from home |
| Employees (permanent, temporary and contractors)
| · Regular staff updates and discussions hosted by the chief executive (CEO), executive directors and senior management, conducted more frequently via digital channels during the COVID-19 pandemic · Regular CEO staff communication via email updates, staff intranet and other digital channels · Induction training for new employees including a welcome from the CEO and senior management · Group and subsidiary fact sheets · Tailored internal investor relations presentations on group results, strategy updates and market feedback · Dedicated, comprehensive intranet including a platform full of resources to support the health and wellbeing of Investec’s people · In the UK, a designated non-executive director overseeing workforce engagement |
| Investors
| · Regular meetings with executive directors, senior management and investor relations · Annual meetings for the largest shareholders with the Chair of the board, Chair of the Remuneration Committee, senior independent director, investor relations, and group company secretarial · Annual general meeting hosted by the Chair of the board with board members in attendance · Two investor presentations and two pre-close investor briefing calls presented by the CEO and Chief Financial Officer · Stock exchange announcements · Comprehensive investor relations website · Investor roadshows and presentations · Regular telephone and email communications · Annual and interim reports |
| Communities
| · Regular in-person meetings, telephone/conference calls and emails with community partners · Comprehensive community website and social media platforms to encourage participation · Staff volunteering · Community partners and nongovernmental organisation (NGO) invited to collaborate at conferences and events |
| Government and regulators
| · Investec’s Chair, CEO, executive directors and the board hold regular meetings with the South African Prudential Authority and with the UK Prudential Regulation Authority · Active participation in a number of policy forums · Engagement with industry consultative bodies |
| ESG analysts and climate focused industry bodies
| · Regular communications on ad-hoc topics · Annual sustainability report · Comprehensive sustainability website · Comprehensive ESG disclosures, including a standalone Task Force on Climate-related Financial Disclosures (TCFD) report · Sustainability factsheets · Investec’s CEO is a member of the UN Global Investors for Sustainable Development Alliance · Regular and active participation in a number of ESG and climate forums relating to the TCFDs, e.g. Partnership for Carbon Accounting Financials (PCAF) · Regular knowledge sharing on ESG industry standards |
| Suppliers | · Centralised negotiation process · Procurement questionnaires requesting information on suppliers’ environmental, social and ethical policies · Conduct due diligence on cyber security and business continuity |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Investec engaged with its stakeholders through interviews.
What actions were taken by Investec to create economic value for its stakeholders?
In its 2021 Group sustainability and ESG supplementary report Investec reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Investec paid £616.4mn for employee salaries, wages and other benefits.
- Creating economic value for the government
- In 2021, Investec paid £450.4mn in corporation, deferred payroll and other taxes.
- Creating economic value for shareholders
- In 2021, Investec paid £53.3mn in dividends to ordinary shareholders, plus £34.7mn in dividends to perpetual preference and Other Additional Tier 1 security holders.
- Creating economic value for communities
- In 2021, Investec spent £9.8mn on community initiatives.
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 Investec, 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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