Case study: How Polymetal creates economic value for its stakeholders
Polymetal International plc is a leading precious metals mining group operating in Russia and Kazakhstan, and one of the most sustainable and responsibility-driven companies in the sector. Polymetal enhances the lives of its stakeholders through its economic contributions as an employer and a taxpayer, developing local infrastructure, supporting national and regional supply chains, and generating returns for shareholders.
This case study is based on the 2021 Integrated Annual Report by Polymetal, 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.
Delivering long-term value to all its stakeholders through responsible and efficient mining, is a top priority for Polymetal. Tweet This! In order to create economic value for its stakeholders Polymetal took action to:
- create economic value for employees
- create economic value for capital providers
- create economic value for suppliers and contractors
- create economic value for the government
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With this case study you will see:
- Which are the most important impacts (material issues) Polymetal has identified;
- How Polymetal proceeded with stakeholder engagement, and
- What actions were taken by Polymetal to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Integrated Annual Report Polymetal identified a range of material issues, such as health and safety, climate change, waste and pollutants, biodiversity and lands. Among these, creating economic value for its stakeholders stands out as a key material issue for Polymetal.
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 Polymetal engages with:
To identify and prioritise material topics Polymetal engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Employees
| · Employee satisfaction survey · Worker councils and their representatives · Internal Hotline, website, intranet and feedback mechanism · Meetings and face-to-face communication with management · Performance reviews · Employee questions to the Group CEO and Board with internally published responses |
| Communities
| · Grievance mechanisms (telephone, email, etc.) · Opinion polls and questionnaires · Public hearings · In person and online meetings with company representatives, including annual results meetings and site visits · Press conferences and Q&As · Working groups · Corporate disclosure: website, sustainability reports, media |
| Government/ local authorities
| · Working groups and meetings · Direct correspondence · Industry conferences |
| Suppliers, contractors and customers
| · Direct correspondence · Contractual relationships · Meetings and training · Industry conferences |
| Capital providers
| · Constructive dialogue at the General Meetings · Integrated Annual Report · Timely information disclosures via corporate website and accredited news agency websites · Conferences and Investor days · ESG meetings · Presentations and conference calls for institutional and individual investors · Site visits · Direct communication |
What actions were taken by Polymetal to create economic value for its stakeholders?
In its 2021 Integrated Annual Report Polymetal reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Polymetal paid $500m for employee wages and salaries.
- Creating economic value for capital providers
- In 2021, Polymetal paid $689m to capital providers.
- Creating economic value for suppliers and contractors
- In 2021, Polymetal paid $555m to suppliers and contractors.
- Creating economic value for the government
- In 2021, Polymetal paid $389m in taxes.
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 Polymetal, 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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