Case study: How MTR creates economic value for its stakeholders
Headquartered in Hong Kong, MTR is a world-class operator of sustainable rail transport services and listed on the Hong Kong Stock Exchange. The economic value MTR creates is shared with its diverse stakeholders Tweet This!, including suppliers, employees, lenders, shareholders, Government and the community.
This case study is based on the 2021 Sustainability Report by MTR, 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 2021, the economic value distributed by MTR reached HK$ 56,105 million. In order to create economic value for its stakeholders MTR took action to:
- create economic value for employees
- create economic value for suppliers and business partners
- create economic value for lenders
- create economic value for HKSAR Government and other shareholders
- create economic value for governments
- create economic value for the community
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With this case study you will see:
- Which are the most important impacts (material issues) MTR has identified;
- How MTR proceeded with stakeholder engagement, and
- What actions were taken by MTR to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Sustainability Report MTR identified a range of material issues, such as customers’ health and safety, community involvement and development, fair competition, sustainable products and services. Among these, creating economic value for its stakeholders stands out as a key material issue for MTR.
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 MTR engages with:
To identify and prioritise material topics MTR engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Business Partners | · Industry meetings, conferences, job fairs, road shows · Partnering programmes, contract and site meetings, seminars |
| Communities
| · Social media channels · Media relations, public announcements, press releases · Contact with the press · Corporate responsibility initiatives through Community Connect · Community liaison group meetings · MTR Society Link · “More Time Reaching Community” staff volunteering scheme · Art in MTR · Partnering programmes with Non-governmental Organisations (NGOs) |
| Customers and Passengers | · Customer satisfaction surveys · MTR Mobile app · MTR Club · MTR website and Facebook page · MTR hotline and online feedback |
| Environmental Interests | · Meetings with green groups and investors · Continuous Environmental Improvement Programme (CEIP) · Environmental Impact Assessment Consultation · Ecologists’ advisory services · CDP Disclosure · Wetland Special Advisory Committee · Sustainability Report |
| Investors
| · Annual and interim reportings · General Meetings · Announcements and Circulars · Investor meetings, conferences and road shows · MTR Hotline, online feedback and email enquiries · MTR Website · Share registrar · Investor questionnaires |
| Media | · Engagement in a regular manner through different channels |
| Political Interests
| · Legislative Council meetings · Meetings with District Councillors · District Council liaison group meetings · Meetings with Legislative Councillors · Other meetings |
| Regulators
| · Regulatory compliance reports · Legislative Council meetings · Advisory panels on transport and urban planning · Meetings with District Councillors · Meetings with Legislative Councillors |
| Staff
| · CEO Messages · Management Communication Meetings · Divisional/ Departmental Communication Meetings · Staff Engagement Survey · Staff Consultation Mechanisms (Staff Consultative Council (SCC) and Joint Consultative Committees (JCCs)) · Meetings with staff unions · Staff communication programmes · Various internal communications · Programmes and channels · “We are MTR” retiree programmes |
| Suppliers
| · Supplier surveys on Corporate Responsibility · Supplier audits · Industry conferences and road shows · Partnering programmes, site visits and seminars |
What actions were taken by MTR to create economic value for its stakeholders?
In its 2021 Sustainability Report MTR reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, MTR paid HK$ 15,537 million in staff costs.
- Creating economic value for suppliers and business partners
- In 2021, MTR paid HK$ 18,307 million to suppliers and business partners.
- Creating economic value for lenders
- In 2021, MTR paid HK$ 557 million to lenders.
- Creating economic value for HKSAR Government and other shareholders
- In 2021, MTR paid HK$ 5,700 million in ordinary dividends to HKSAR Government and HK$ 1,908 million in ordinary dividends to other shareholders.
- Creating economic value for governments
- In 2021, MTR paid HK$ 2,178 million in taxes.
- Creating economic value for the community
- In 2021, MTR spent HK$ 15 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 MTR, 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.mtr.com.hk/sustainability/assets/pdf/en/2021/MTR_Full.pdf
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