Case study: How Mondi creates economic value for its stakeholders
Mondi is a global leader in packaging and paper, employing around 26,500 people at over 100 production sites across more than 30 countries, with key operations located in Europe, North America and Africa. Mondi measures its value distribution to show its financial support of different stakeholder groups, including employees, shareholders and governments.
This case study is based on the 2021 Sustainable Development Report by Mondi, 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
By combining its integrated value chain, strong relationships, responsible resource management, and leveraging its competitive advantages, Mondi seeks to create value in a sustainable way into the future for all its stakeholders. Tweet This! In order to create economic value for its stakeholders Mondi took action to:
- create economic value for employees
- create economic value for the government
- create economic value for providers of equity and loan capital
- create economic value for suppliers
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) Mondi has identified;
- How Mondi proceeded with stakeholder engagement, and
- What actions were taken by Mondi to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Sustainable Development Report Mondi identified a range of material issues, such as food waste and loss, packaging waste, product safety and quality, responsible consumption and changing consumer preferences. Among these, creating economic value for its stakeholders stands out as a key material issue for Mondi.
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 Mondi engages with:
Stakeholder Group | Method of engagement |
Employees
| · Employee surveys (biennial Group-wide surveys and regular pulse surveys) · Group-wide intranet (planetmondi) and other forms of communication (such as social media, printed publications, info screens and posters, etc.) · Performance and development reviews at regular intervals · Internal conferences such as the European Communication Forum, Leadership Forums, Virtual Employee Meetings and regular management updates · Employee training programmes and workshops · Day-to-day team interaction and recognition schemes like You Make Mondi · Annual Making a Difference Day (MADD) |
Customers
| · Key account manager relationships · Digital customer interfaces · Collaboration on product innovation · Customer and industry events and exhibitions · Multi-stakeholder initiatives, e.g. CEFLEX and the Ellen MacArthur Foundation’s New Plastics Economy initiative · Participation in supplier sustainability rating platforms, e.g. EcoVadis · Participation in transparency initiatives, e.g. CDP and Paper Profile · Questionnaires · Regular customer satisfaction surveys · Ongoing conversations |
Suppliers and contractors
| · Strategic supplier partnerships · Supplier assessments, evaluations and audits · Responsible Procurement process · Discussions on credible certification systems to secure sustainable fibre · Meetings and workshops to develop common approaches based on shared values · Appointment of contract managers to facilitate liaison between contractors and the Mondi team · Safety training for contractors |
Communities | · Community engagement and investments · Open days and visits to Mondi’s sites · Development initiatives · Confidential hotlines (SpeakOut and local equivalents) · Socio-economic Assessment Toolbox (SEAT) process (2021 assessments postponed due to the pandemic) |
Investors | · Annual General Meetings · Results presentations and trading update calls · Roadshows, telephone calls and other meetings · Integrated and Sustainable Development reports · Questionnaires and ad hoc questions and requests · Independent disclosure platforms for investors, such as CDP · Site visits and capital markets days · Investor perception studies |
Partners and industry associations | · 4evergreen · Circular Economy for Flexible Packaging · Confederation of European Paper Industries · Ellen MacArthur Foundation · Endangered Wildlife Trust · EU Business @ Biodiversity Platform · Institute of Biology of Komi Science Centre of Russian Academy of Science · International Union of Forest Research Organisations · Silver Taiga Foundation · Stellenbosch University · United Nations World Food Programme · WBCSD Forest Solutions Group · WWF Climate Savers |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics, Mondi engaged with its stakeholders through an internal survey among employees and interviews with senior leaders and external stakeholders.
What actions were taken by Mondi to create economic value for its stakeholders?
In its 2021 Sustainable Development Report Mondi reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, 42% of Mondi’s distributed value (€2,608 million) went to employees.
- Creating economic value for the government
- In 2021, Mondi paid €190 million in direct taxes.
- Creating economic value for providers of equity and loan capital
- In 2021, 12% and 3% of Mondi’s distributed value (€2,608 million) went to providers of equity and loan capital, respectively.
- Creating economic value for suppliers
- In 2021, Mondi procured €5.9 billion worth of goods and services from its suppliers.
- Creating economic value for communities
- In 2021, Mondi’s social investments reached €11.8 million.
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 Mondi, 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.mondigroup.com/media/15145/mondi-group-sustainable-development-report-2021.pdf
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