Case study: How Lundin Mining creates economic value for its stakeholders
Lundin Mining is a diversified Canadian base metals mining company with headquarters in Toronto, Canada, and operations in Brazil, Chile, Portugal, Sweden and the United States of America. Lundin Mining seeks to deliver shared value for all its stakeholders through effective partnerships and innovation Tweet This!, while maintaining balance sheet strength and flexibility to act on compelling growth opportunities.
This case study is based on the 2022 Sustainability Report by Lundin Mining, 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 total economic value distributed by Lundin Mining reached $ 2,203,478 thousand. In order to create economic value for its stakeholders Lundin Mining 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) Lundin Mining has identified;
- How Lundin Mining proceeded with stakeholder engagement, and
- What actions were taken by Lundin Mining to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2022 Sustainability Report Lundin Mining identified a range of material issues, such as tailings and waste management, GHG emissions, community relations and development, workplace health and safety, water use and efficiency. Among these, creating economic value for its stakeholders stands out as a key material issue for Lundin Mining.
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 Lundin Mining engages with:
| Stakeholder Group | Method of engagement |
| Local Communities | · Occasional virtual webinars, trainings and forums · Scheduled virtual/ in-person meetings · Guided site tours and visits to Community Offices · Door-to-door visits · Community perceptions surveys – SLO Index · Newsletters and social media · Annual sustainability summary brochures |
| Indigenous Peoples
| · Regular engagement with local indigenous community members regarding identified concerns and opportunities for collaboration |
| Government
| · Regular meetings or consultations · Implementation of agreements · Partnerships |
| Employees and Contractors
| · Site-specific Joint Health & Safety Committee (JHSC) · Training · Safety Culture Perception and Sustainability Surveys · Social media · Regular newsletter, internal communications and e-mail updates · Employee Engagement Surveys |
| Labour Unions
| · Collective bargaining (where applicable) · One-on-one and group meetings |
| Non-Governmental Organisations | · Community collaboration programmes · Meetings throughout the year, as needed |
| Industry Associations/ Regional Business Associations | · Ongoing membership in industry associations · Participation in industry forums, conferences and committees |
| Suppliers | · Meetings with local contractors and suppliers · Meetings with other contractors and suppliers |
| Customers | · Regular contact · Environmental, social and governance-related information requests and surveys · Engagement on Scope 3 emissions and climate-related initiatives |
| Local Tax Authorities (Chile) | · Engagement to identify impacts, risks and needs specific to the community and to align potential opportunities with Lundin Mining’s funding priorities |
| Investors/ Shareholders | · Investor/ Industry events and presentations · Annual General Meeting of shareholders, Quarterly and Annual Corporate Filings · Meetings and email correspondence with analysts, investors and lenders · Third-party ESG rating databases (Bloomberg, S&P, etc.) · Quarterly analyst conference calls |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Lundin Mining engaged with its stakeholders through interviews.
What actions were taken by Lundin Mining to create economic value for its stakeholders?
In its 2022 Sustainability Report Lundin Mining reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2022, Lundin Mining paid $ 342,285 thousand for employee benefits.
- Creating economic value for providers of capital
- In 2022, Lundin Mining paid $ 287,078 thousand to providers of capital.
- Creating economic value for governments
- In 2022, Lundin Mining paid $ 184,039 thousand to governments.
- Creating economic value for communities
- In 2022, Lundin Mining spent $ 4,694 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 Lundin Mining, 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://lundinmining.com/site/assets/files/9177/2022_sustainability_report_lundin_mining_aoda.pdf
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