Case study: How Newcrest creates economic value for its stakeholders
Newcrest is the largest gold producer listed on the Australian Securities Exchange and one of the world’s largest gold mining companies. Newcrest seeks to include affected stakeholders in decisions and understand their viewpoint with an engagement approach tailored to each stakeholder group, creating sustainable value for all.
This case study is based on the 2022 Sustainability Report by Newcrest, 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
Generating, through its operations, long-term value for employees, communities and all its stakeholders, is a top priority for Newcrest. Tweet This! In order to create economic value for its stakeholders Newcrest took action to:
- create economic value for employees
- 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) Newcrest has identified;
- How Newcrest proceeded with stakeholder engagement, and
- What actions were taken by Newcrest 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 Newcrest identified a range of material issues, such as climate change, human rights, transparent and ethical business, diversity and inclusion. Among these, creating economic value for its stakeholders stands out as a key material issue for Newcrest.
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 Newcrest engages with:
| Stakeholder Group | Method of engagement (Inform) |
| Employees and contractors | · Employee briefings · Intranet · Newsletters · Social events · Notice boards · Departmental site and toolbox meetings · Performance reviews · Town hall meetings · Organisational Health survey |
| Local Communities | · Community Relations team visits · Resident and community meetings · Site visits/tours · Communication and feedback forums · Dedicated communication contacts · Environmental and social impacts complaints and grievance mechanisms · Sponsorships and partnerships · Collaborative agreements · Media engagement on local initiatives · Community newsletters · Factsheets · Websites & social media |
| Shareholders | · Annual Reports · Annual General Meeting · Half-yearly financial reporting · Quarterly production and exploration reports · Website and email · Investor briefings · Investor days · Meetings · Conference calls · Market announcements · Conferences and social media |
| Government and regulators | · Department meetings · Regular briefings by telephone and email · Website and social media publications |
| Suppliers | · Collaborative guidelines · Out-to-market approaches · Meetings · Contractual agreements and questionnaires |
| Customers | · Market tenders · Meetings · Reports · Conference engagement · Site visits |
| Industry | · Industry forums · Conference engagement · Working groups and committees · Internet portals |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Newcrest engaged with its stakeholders through interviews.
What actions were taken by Newcrest to create economic value for its stakeholders?
In its 2022 Sustainability Report Newcrest reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In FY22, Newcrest paid $530 million for employee benefits.
- Creating economic value for governments
- In FY22, Newcrest paid $406 million in income taxes and other payments to governments.
- Creating economic value for communities
- In FY22, Newcrest spent $50 million in community expenditures.
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 Newcrest, 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:
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