Case study: How Nexa creates economic value for its stakeholders
Nexa is a global, integrated, low-cost zinc, copper and lead mining company with over 60 years of experience in the development and operation of mining and smelter assets in Latin America. Nexa seeks to be a company that is increasingly connected with the demands of society and with value generation for all its stakeholders. Tweet This!
This case study is based on the 2021 Annual Report by Nexa, 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
Adding and distributing value to its stakeholders through its mining, processing, smelting and marketing activities is a top priority for Nexa. In order to create economic value for its stakeholders Nexa took action to:
- create economic value for employees
- create economic value for suppliers
- create economic value for the government
- create economic value for third parties
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) Nexa has identified;
- How Nexa proceeded with stakeholder engagement, and
- What actions were taken by Nexa to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Annual Report Nexa identified a range of material issues, such as ethics and compliance, water resources management, climate change, health, safety and well-being. Among these, creating economic value for its stakeholders stands out as a key material issue for Nexa.
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 Nexa engages with:
| Stakeholder Group | Method of engagement |
| Community
| · Socio-environmental programmes · Local meetings · Volunteer work · Socio-economic characteristics of the communities · Social media · Website · Ethics Line · Annual report · Social agenda · Public hearings · Live streams |
| Shareholders and investors
| · Meetings · Industry meetings · Visits · Website · Social media · IR news · Annual report · 20F · Quarterly disclosure of earnings |
| Suppliers | · Socio-environmental criteria for selection and hiring · Ethics Line · Annual report · Plural Chain |
| Customers | · Contact with sales teams · Satisfaction survey · Ethics Line · Annual report |
| Banks | · Meetings · Conference calls · Sectorial events · Sponsored events · Quarterly disclosure of earnings · Ethics Line · Annual report · 20F |
| Sectoral associations
| · Meetings · Sectorial meetings · Ethics Line · Annual report · Participation in the governance structure of associations |
| Employees, third-party contractors, interns, and apprentices | · Open Dialogue with the CEO · Dialogue with Leaders · Strategic and management meetings · What’s Nexa · Biweekly Safety Dialogue · Performance and Development Dialogue · Career Planning and Development · Ethics Line · Annual report · Workplace · Go Nexa · Rolando na Nexa |
| Governing Bodies
| · Meetings · Contacts · Website · Social media · Ethics Line · Annual report |
| Regulatory agencies
| · Meetings · Written communication · Website · Social media · Ethics Line · Annual report |
| Third-sector organisations
| · Meetings · Socio-environmental programmes · Qualification of NGOs · Website · Social media · Ethics Line · Annual report · Visit to Nexa social projects · Relationship meetings |
| Press | · Press releases · Interviews · Website · Social media · Annual report |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Nexa engaged with its stakeholders through a survey, receiving 194 complete responses.
What actions were taken by Nexa to create economic value for its stakeholders?
In its 2021 Annual Report Nexa reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Nexa paid $223,115.00 (US$ thousand) for employee salaries, benefits and social charges.
- Creating economic value for suppliers
- In 2021, Nexa paid more than US$ 2 billion to suppliers.
- Creating economic value for the government
- In 2021, Nexa paid $513,793.41 (US$ thousand) in taxes, tariffs and contributions.
- Creating economic value for third parties
- In 2021, Nexa paid $653,353.17 (US$ thousand) in remuneration of third-party capital.
- Creating economic value for communities
- In 2021, Nexa spent US$ 12 million in social initiatives.
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 Nexa, 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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