Case study: How MPC creates economic value for its stakeholders
Marathon Petroleum Corporation (MPC) is a leading, integrated, downstream energy company headquartered in Findlay, Ohio, which operates the United States’ largest refining system. MPC recognises the importance of creating shared value with all of its stakeholders Tweet This! and contributes to society as an energy provider, employer, taxpayer, supply chain participant and investor in local communities.
This case study is based on the 2020 Sustainability Report by MPC, 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
MPC’s commitment to sustainability means taking actions that create shared value with its stakeholders, empowering people to achieve more, contributing to progress in MPC’s communities and protecting the environment. In order to create economic value for its stakeholders MPC took action to:
- create economic value for employees
- create economic value for suppliers
- create economic value for governments
- create economic value for shareholders
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) MPC has identified;
- How MPC proceeded with stakeholder engagement, and
- What actions were taken by MPC to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020 Sustainability Report MPC identified a range of material issues, such as GHG emissions, climate change risks and opportunities, workforce health and safety, diversity, equity and inclusion, process safety. Among these, creating economic value for its stakeholders stands out as a key material issue for MPC.
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 MPC engages with:
To identify and prioritise material topics MPC engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Employees | · Code of Business Conduct · Integrity Helpline · CEO communications · Regular employee communications · Performance management · Safety meetings · Employee Network Groups · Wellness programmes |
| Business Partners | · Supplier Code of Conduct · Business partner reviews · Sourcing process · Contract management · Supplier diversity programme · Value creation opportunities · Supplier audits · Supplier recognition awards · Strategic partnership management |
| Customers
| · Global, regional and local industry events, forums and conferences · Company events and meetings · Partnerships and working groups to advance best practices |
| Communities
| · Websites, news and social media · Community investment programmes · Community engagement · Bridge programmes · Employment · Landowner events · Focus groups · Community surveys · Facility tours · Community hotlines · Community Advisory Panels · Facilitation of community events · Sponsorships |
| Governments | · Advocacy · Policy development · Industry and trade association representation · Regulatory compliance · Permit reviews · Regulatory audits · Collaboration on community investment projects · Tours · Marathon Petroleum Corporation Employees Political Action Committee |
| Shareholders | · Investor presentations and conferences · Engagement with analysts and portfolio managers · Engagement with investor stewardship teams · Annual Shareholder Meeting · SEC filings |
What actions were taken by MPC to create economic value for its stakeholders?
In its 2020 Sustainability Report MPC reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2020, MPC paid $5.1 billion in wages and benefits to over 58,000 employees.
- Creating economic value for suppliers
- In 2020, MPC paid $15.1 billion to more than 16,000 suppliers and business partners.
- Creating economic value for governments
- In 2020, MPC paid $13.6 billion in taxes to governments, contributing to national, state and local economies.
- Creating economic value for shareholders
- In 2020, MPC paid $1.5 billion to shareholders through dividends.
- Creating economic value for communities
- In 2020, MPC invested $17 million in the communities in which it operated through company and employee contributions.
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 MPC, 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://sustainability.marathonpetroleum.com/assets/393095(4)_1_Marathon Petroleum_SR_WR_TRAD.pdf
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