Case study: How Kinross creates economic value for its stakeholders
Kinross is a Canadian-based global senior gold mining company with operations and projects in the United States, Brazil, Mauritania, Chile and Canada. Kinross is focused on delivering sustainable value, based on the core principles of responsible mining, operational excellence, disciplined growth, and balance sheet strength. Tweet This!
This case study is based on the 2022 Sustainability and ESG Report by Kinross, 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
In 2022, Kinross contributed $2.9 billion through payments to governments, procurement, wages and benefits and community investments in its operating jurisdictions. In order to create economic value for its stakeholders Kinross took action to:
- create economic value for employees
- create economic value for shareholders
- create economic value for suppliers
- 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) Kinross has identified;
- How Kinross proceeded with stakeholder engagement, and
- What actions were taken by Kinross to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2022 Sustainability and ESG Report Kinross identified a range of material issues, such as ethics and transparency, health and safety, climate change and energy, diversity, equity and inclusion. Among these, creating economic value for its stakeholders stands out as a key material issue for Kinross.
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 Kinross engages with:
To identify and prioritise material topics Kinross engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Employees
| · Monthly H&S calls with all sites to share learnings · Employee surveys (targeted, site- and regionally-specific) · Webinars · Direct meetings · Biannual CEO “Town Halls” and special topics · Kinross World online employee publication (five languages) · Email announcements · Videos |
| Investors, shareholders, rating agencies, lenders, and analysts
| · Direct meetings (in-person and virtual) · Investor Conferences · Investor calls · Annual Meeting · News releases · Website · Social media |
| Host communities
| · Planned stakeholder engagements with local community organisations and local authorities · Broad community engagement · Local community investments, partnerships and sponsorships · Grievance resolution mechanism · Early consultation for planned projects |
| Media
| · Provision of timely information through news releases, website and social media channels · Interviews · Communications via phone and email · Regulatory filings and other corporate publications |
| Governments and regulators
| · Regulatory submissions · Submitting information requests · Public consultations · Ongoing meetings and individual communications and correspondence · Participation in events, roundtables, and other forums · Collaboration on joint campaigns, programmes · Dispute resolution and dialogue tables · Site tours · Information requests |
| Insurers | · Direct meetings (in-person and virtual) |
| Refiners
| · To assist with the Responsible Sourcing Program, provision of updates to Know Your Client (KYC) forms to refiners and access for refiners to perform due diligence site visits |
| Suppliers and contractors
| · Key supplier performance reviews · Technology discussions with original equipment manufacturers · Forecasts, inventories, supply capabilities, allocations and constraints · Consultation and supplier participation in strategic cost savings programmes · RFPs and new business opportunities · Risks and mitigation plans |
| NGOs, multinational organisations, think tanks and civil society
| · Workshops · Surveys · Joint projects · Working groups |
What actions were taken by Kinross to create economic value for its stakeholders?
In its 2022 Sustainability and ESG Report Kinross reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2022, Kinross paid $681.9 million for in-country employee wages.
- Creating economic value for shareholders
- In 2022, Kinross paid $455 million to shareholders.
- Creating economic value for suppliers
- In 2022, Kinross paid $2,165.6 million to in-country suppliers and $480.1 million to out-of-country suppliers.
- Creating economic value for governments
- In 2022, Kinross paid $344.6 million to governments.
- Creating economic value for communities
- In 2022, Kinross spent $8.9 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 Kinross, 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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