Case study: How LATAM creates economic value for its stakeholders
LATAM Airlines Group S.A. has domestic operations in five countries in South America— Brazil, Chile, Colombia, Ecuador, and Peru—and offers the best connectivity within, to, and from Latin America, covering 144 destinations in 22 countries with its passenger operations and 154 destinations with its cargo operations. LATAM’s main value output is its capacity to generate lasting positive impacts, for both the business and all its stakeholders.
This case study is based on the 2022 Integrated Report by LATAM, 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, the economic value distributed by LATAM reached US$9,231,965 thousand. Tweet This! In order to create economic value for its stakeholders LATAM took action to:
- create economic value for employees
- 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) LATAM has identified;
- How LATAM proceeded with stakeholder engagement, and
- What actions were taken by LATAM to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2022 Integrated Report LATAM identified a range of material issues, such as mitigating climate change, health and safety in the air and on the ground, ethics and anti-corruption, sustainable tourism. Among these, creating economic value for its stakeholders stands out as a key material issue for LATAM.
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 LATAM engages with:
| Stakeholder Group |
| Authorities and different government bodies |
| Trade associations |
| International organisations |
| Capitals market |
| Communities |
| Employees |
| Network of suppliers |
| Customers |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics LATAM engaged with its stakeholders through an online survey.
What actions were taken by LATAM to create economic value for its stakeholders?
In its 2022 Integrated Report LATAM reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2022, LATAM paid US$1,266,336 thousand for employee salaries and benefits.
- Creating economic value for the government
- In 2022, LATAM paid US$8,914 thousand in taxes.
- Creating economic value for communities
- In 2022, LATAM spent US$18 thousand 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 LATAM, 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.latamairlinesgroup.net/static-files/3713f695-b961-440f-bf91-6842c3cd6fac
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