Case study: How OCP creates economic value for its stakeholders
OCP Group is a leading producer of phosphate rock and phosphatic fertilizers, employing 21,000 people and serving 350 customers worldwide. OCP’s sustainable development strategy is based on continuous dialogue and joint development with its internal and external stakeholders Tweet This!, using an inclusive business approach.
This case study is based on the 2020 Sustainability Report by OCP, 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
As a responsible company, OCP seeks to thoroughly understand every impact it has and takes actions to create shared value for all its stakeholders. In order to create economic value for its stakeholders OCP took action to:
- create economic value for employees
- create economic value for suppliers
- create economic value for the government
- create economic value for providers of capital
- support communities
Subscribe for free and read the rest of this case study
Please subscribe to the SustainCase Newsletter to keep up to date with the latest sustainability news and gain access to over 2000 case studies. These case studies demonstrate how companies are dealing responsibly with their most important impacts, building trust with their stakeholders (Identify > Measure > Manage > Change).
With this case study you will see:
- Which are the most important impacts (material issues) OCP has identified;
- How OCP proceeded with stakeholder engagement, and
- What actions were taken by OCP to create economic value for its stakeholders
Already Subscribed? Type your email below and click submit
What are the material issues the company has identified?
In its 2020 Sustainability Report OCP identified a range of material issues, such as food security, community engagement, occupational health and safety, renewable energy development. Among these, creating economic value for its stakeholders stands out as a key material issue for OCP.
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 OCP engages with:
| Stakeholder Group | Method of engagement |
| Employees
| · Workshops · Surveys · Situations and movements (Act4Community, diversity, Happy@OCP, etc.) · Hackathons · Training, peer-to-peer knowledge transfer (OCP Professors) and skills assessment programmes · Group intranet · 1 Pacte · Digital applications and workplace, performance evaluation, etc |
| Senior management
| · Board of Directors · Audit and Risk Committee: risk assessment integrating sustainable development · Strategic Committee: Global Strategic Review (activities integrating sustainable development criteria through a Top-Down/bottom-up process) · Management Committee (Executive Vice Presidents): advisory process (on environmental and social issues) and thematic focus groups · Operational Committee using, in their decision making, input from site management committees (right place, time, rate, source) · Contracts with local authorities, public-private partnership · Specialised committees (health, safety, environment, technical) |
| Farmers
| · 4R Programme (customised agriculture) · Development of a soil fertility map · OCP Foundation / Phosboucraa Foundation · Al Moutmir caravan and agronomic advice · Development of a farmer-friendly business ecosystem (local production and distribution infrastructure) |
| Customers
| · Feedback in various forms (written, by phone, etc.) · Meetings, site visits, road shows, client events (trade fairs, exhibitions, etc.) · Quality and risk management processes |
| Trade unions
| · Social Charter · CSP (Staff Status Commission) · CAS (Social Action Commission) · CHS (Health and Safety Committee) · CNC (Collective Bargaining Committee) · Training academy |
| Suppliers
| · Progress pact (training and support for improving social, environmental, and safety compliance, and in other areas) · Act4Community · OCP purchasing platform (e-purchase) · Programmes for suppliers · Forums and conferences on the emergence of an industrial ecosystem · Meetings and dialogue with local stakeholders at the operational site level · Industrial Expertise Centres, digital schools and startup incubators for local small businesses |
| Nearby communities | · Public survey for industrial projects (development, modification, and expansion projects) · Complaint management system at the corporate level and at operational sites · Association forums · Meetings with residents · Thematic forums on entrepreneurship (micro-business, local business, etc.) |
| Associations and NGOs | · Skills development programmes · Dialogue and joint development: Act4Community · Subsidies for projects · Association forums · Thematic forums on entrepreneurship (micro-business, local business, etc.) |
| Influencers: Media & rating agencies | · Discussions with local, national, and international media · Site tours · Websites (corporate, foundations) and social media (Facebook, Twitter, LinkedIn) · Presentation of the sustainable development programme to local and national media · Forums, conferences, national and international events |
| Institutions, authorities and regulators | · Global issue advocacy · Board of Directors · Programme contracts · Various discussions (local meetings, informal meetings, written correspondence with institutions, etc.) |
| Food industry | · WBCSD and other institutions · UN Food Systems Summit 2021 · Dialogue with processors, retailers & consumer-oriented companies |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics OCP engaged with its stakeholders through a questionnaire sent to 40 stakeholder representatives (2019) and a questionnaire sent to 10 OCP sales offices around the world (2020).
What actions were taken by OCP to create economic value for its stakeholders?
In its 2020 Sustainability Report OCP reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2020, the economic value OCP distributed reached $5,4 billion, of which 19% was paid for employee wages and benefits.
- Creating economic value for suppliers
- In 2020, 58% of the economic value OCP distributed ($5,4 billion in total) concerned suppliers and other external payments.
- Creating economic value for the government
- In 2020, 4% of the economic value OCP distributed ($5,4 billion in total) concerned payments to the government.
- Creating economic value for providers of capital
- In 2020, 10% of the economic value OCP distributed ($5,4 billion in total) concerned payments to providers of capital.
- Supporting communities
- In 2020, 9% of the economic value OCP distributed ($5,4 billion in total) concerned 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
78% of the world’s 250 largest companies report in accordance with the GRI Standards
SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.
Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.
7 GRI sustainability disclosures get you started
Any size business can start taking sustainability action
GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom (venue: London School of Economics)
- Exclusive FBRH template to begin reporting from day one
- Identify your most important impacts on the Environment, Economy and People
- Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP.
- Benchmarking methodology to set you on a path of continuous improvement
See upcoming training dates.
References:
This case study is based on published information by OCP, 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://ocpsiteprodsa.blob.core.windows.net/media/2021-08/OCP-Sustainability_report_2020.pdf
Note to OCP: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.