Case study: How Navigator creates economic value for its stakeholders
The Navigator Company is an integrated forestry, pulp, paper, tissue, sustainable packaging solutions and bioenergy producer, with operations based at state-of the-art plants using cutting edge technology, making them a global benchmark. Aware of the impact of its operations on society, Navigator sees its purpose as creating long-term, sustainable value and sharing it with all its different stakeholders. Tweet This!
This case study is based on the 2021 Sustainability Report by Navigator, 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 value distributed by Navigator reached € 1,490 million. In order to create economic value for its stakeholders Navigator took action to:
- create economic value for employees
- create economic value for capital providers
- create economic value for the state
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) Navigator has identified;
- How Navigator proceeded with stakeholder engagement, and
- What actions were taken by Navigator 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 Navigator identified a range of material issues, such as ethics, transparency and inclusion, responsible use of resources, talent management and developing human capital, sustainable forestry management and conserving biodiversity. Among these, creating economic value for its stakeholders stands out as a key material issue for Navigator.
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 Navigator engages with:
| Stakeholder Group | Method of engagement (Inform) |
| Shareholders
| · Investor relations · Regular reporting of financial and nonfinancial information · ESG Indexes · Sustainability Forum |
| Business associations | · Participation in management bodies of industry associations in areas such as energy, forestry and sustainable development · Sustainability Forum |
| Customers
| · Meetings/Visits to Group’s mills and nurseries · Satisfaction surveys · Corporate website · Business activities · Advertising campaigns · Periodic engagement exercises |
| Employees
| · Periodic meetings between Executive Board and Workers’ Committee · Managers’ Forum · My Planet · Intranet · Mill visits |
| Community
| · Community Monitoring Committees · Sustainability Forum · My Planet · Give the Forest a Hand · Forest of Knowledge |
| Government and regulatory authorities | · Formal response to legal requirements · Meetings and response to various enquiries · Sustainability Forum · Community Monitoring Committees |
| Suppliers | · Declarations of conformity · Sustainability assessment surveys · Sustainability Forum |
| NGOs | · Sustainability Forum · Visits to Group’s mills and nurseries · Cooperation agreements · Community Monitoring Committees |
| Forest landowners and forestry associations | · Cooperation agreements · Forestry Producers Magazine · Florestas.pt platform · e-globulus platform · Technology showcases · Trade Fairs · Sustainability Forum |
| Scientific and technological system | · Cooperation agreements with Universities · Research partnerships (RAIZ) · Study grants and Master’s degrees · Sustainability Forum · Forest of Knowledge |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Navigator engaged with its stakeholders through surveys and in-depth interviews.
What actions were taken by Navigator to create economic value for its stakeholders?
In its 2021 Sustainability Report Navigator reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Navigator paid € 154 million for employee salaries and benefits.
- Creating economic value for capital providers
- In 2021, Navigator paid € 167 million to capital providers.
- Creating economic value for the state
- In 2021, Navigator paid € 90 million in taxes.
- Creating economic value for communities
- In 2021, Navigator spent € 1.6 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 Navigator, 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:
http://en.thenavigatorcompany.com/var/ezdemo_site/storage/original/application/908f314e757ac8eff5725aba330ea2bb.pdf
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