Case study: How Newmont creates economic value for its stakeholders
Newmont is the world’s leading gold company and a producer of copper, silver, lead and zinc. Recognised for its commitment to environmental, social and governance (ESG) practices, Newmont is an industry leader in value creation, supported by robust safety standards, superior execution and technical expertise.
This case study is based on the 2022 Sustainability Report by Newmont, 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 2022, the economic value distributed by Newmont reached $11,072.14 million. Tweet This! In order to create economic value for its stakeholders Newmont took action to:
- create economic value for employees
- create economic value for providers of capital
- 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) Newmont has identified;
- How Newmont proceeded with stakeholder engagement, and
- What actions were taken by Newmont 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 Newmont identified a range of material issues, such as business integrity and compliance, climate change, health, safety and security, human rights, water stewardship. Among these, creating economic value for its stakeholders stands out as a key material issue for Newmont.
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 Newmont engages with:
| Stakeholder Group | Method of engagement (Inform) |
| Business partners (e.g., joint ventures, strategic business partners)
| · Terms of agreements · Annual and quarterly reports · Regulatory filings · Regular meetings and communications via telephone, email, website and mailings |
| Employees
| · Employee assistance programmes (e.g., guidance resources) · Collective bargaining/contracts · Leadership coaching · Training and development programmes · Integrity Helpline · Conversations between managers and employees · Performance feedback · Engagement surveys · Town hall meetings with the CEO and other leaders · Manager learning series training · Online training · Newsletters · Employee-led business resource groups · Employee communications channels |
| Government and regulatory bodies
| · Regulatory filings · Responses to requests for information · Participation in events and forums · Collaboration on government/industry campaigns and programmes · Public advisory processes · Dispute mediation and dialogue tables · Tours of operations and site visits · Meetings and personal communications |
| Host communities
| · Participation in social and environmental assessments · Socioeconomic programmes · Foundations and funds · Complaints and grievance mechanisms · Forums · Conferences · Site visits · Surveys · Community development committees and boards · Participatory monitoring · Meetings and personal communications |
| Media
| · Press releases · Interviews · Regulatory filings · Presentations · Publications · Site visits · Editorial board meetings · Communications via phone and email · Company website and social media channels |
| Non-governmental organisations (NGOs), multinational organisations and civil society
| · Social/community/other assessments · Participation in multi-stakeholder initiatives and global working groups for developing disclosure standards · Strategic partnerships · Forums · Conferences · Participation in thought-leadership panels and advisory councils · Questionnaires · Meetings and personal communications |
| Peers and industry associations
| · Active participation as members and on boards or other leadership assignments · Conferences · Engagement through business bodies and industry-wide initiatives · Meetings and personal communication |
| Shareholders, investors and analysts
| · Annual and quarterly reports · Regulatory filings · Investor conferences · Annual general meeting · Investor roadshows · Credit rating agency engagement · Tours of operations and site visits · Analyst days · Regular meetings and communications via telephone, email, website and mailings |
| Suppliers/ contractors
| · Contract negotiations · Supplier Risk Management programme · Participation in contractor safety programmes and continuous improvement initiatives · Social responsibility partnerships · Meetings and personal communications |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Newmont engaged with its stakeholders through interviews.
What actions were taken by Newmont to create economic value for its stakeholders?
In its 2022 Sustainability Report Newmont reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2022, Newmont paid $1,500.75 million for employee wages and benefits.
- Creating economic value for providers of capital
- In 2022, Newmont paid $2,032.19 million to providers of capital.
- Creating economic value for governments
- In 2022, Newmont paid $1,531.69 million to governments.
- Creating economic value for communities
- In 2022, Newmont spent $67.65 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 Newmont, 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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