Case study: How Keppel creates economic value for its stakeholders
Keppel is a world leader in providing solutions for sustainable urbanisation, focusing on four key areas comprising energy & environment, urban development, connectivity and asset management. Under Vision 2030, Keppel has put sustainability at the core of its strategy and works with like-minded partners to create value for all its stakeholders. Tweet This!
This case study is based on the 2021 Sustainability Report by Keppel, 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.
In 2021, Keppel generated $9.49b of economic value for its stakeholders. In order to create economic value for its stakeholders Keppel took action to:
- create economic value for employees
- create economic value for suppliers and contractors
- create economic value for capital providers
- 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) Keppel has identified;
- How Keppel proceeded with stakeholder engagement, and
- What actions were taken by Keppel 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 Keppel identified a range of material issues, such as business ethics & integrity, corporate governance, product safety & quality, cyber security & data protection, occupational health & safety. Among these, creating economic value for its stakeholders stands out as a key material issue for Keppel.
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 Keppel engages with:
| Stakeholder Group | Method of engagement |
| Employees | · Annual employee engagement surveys · Regular townhalls and other engagement programmes · Continuous training and development · Mentorship programmes |
| Customers | · Regular meetings · Ongoing communication via different channels · Regular customer satisfaction surveys |
| Governments | · Periodic visits and meetings · Industry forums · Support for national and regional initiatives |
| Shareholders & investors | · Regular conference calls · Shareholder meetings · Briefings to retail shareholders · Facility visits · Results briefings and business updates · Ongoing email and phone communications |
| Suppliers
| · Regular meetings by project managers and HSE teams with key subcontractors and suppliers · Regular site visits by management |
| Local communities | · Public communications · Periodic meetings · Community outreach initiatives · Communication with local communities on upcoming construction works |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Keppel engaged with its stakeholders through surveys, workshops and extensive interviews.
What actions were taken by Keppel to create economic value for its stakeholders?
In its 2021 Sustainability Report Keppel reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Keppel paid $1,115m for employee wages and benefits.
- Creating economic value for suppliers and contractors
- In 2021, Keppel paid $6,895m in operating costs, including purchases from suppliers and contractor costs.
- Creating economic value for capital providers
- In 2021, Keppel paid $608m to capital providers.
- Creating economic value for governments
- In 2021, Keppel paid $260m in income taxes.
- Creating economic value for communities
- In 2021, Keppel paid $4.6m in voluntary contributions to worthy social causes through charitable donations, community investments and commercial 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 Keppel, 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.kepcorp.com/en/file/sustainability/sustainability-reports/kcl-sr-21.pdf
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