Case study: How QAFAC creates economic value for its stakeholders
Qatar Fuel Additives Company, popularly known as QAFAC, is an outcome of the strategic plan of the State of Qatar to diversify its petrochemical base and expand its downstream industries. QAFAC aims to optimise the utilisation of the State of Qatar’s vast hydrocarbon resources through producing and exporting Methanol and MethylTertiary-Butyl-Ether (MTBE). QAFAC seeks to continuously create and distribute economic value in its value chain Tweet This!, as it is an important indicator of its organisational performance.
This case study is based on the 2019 Sustainability Report by QAFAC, 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 economic value for all its stakeholders signifies QAFAC’s economic sustainability, potential for growth and impact on the socio-economic environment in which it operates. In order to create economic value for its stakeholders QAFAC took action to:
- create economic value for employees, providers of capital and government(s)
- support the local community
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With this case study you will see:
- Which are the most important impacts (material issues) QAFAC has identified;
- How QAFAC proceeded with stakeholder engagement, and
- What actions were taken by QAFAC to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2019 Sustainability Report QAFAC identified a range of material issues, such as reliability and process safety, product responsibility and innovation, waste management, human rights and labour standards, occupational health and safety. Among these, creating economic value for its stakeholders stands out as a key material issue for QAFAC.
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 QAFAC engages with:
To identify and prioritise material topics QAFAC engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| State of Qatar and Regulatory Bodies
| · Meetings with government entities · Partnerships with government entities · Conferences and exhibitions · Performance reports to regulatory bodies · Annual sustainability report |
| Shareholders
| · Quarterly meetings · Annual interviews and shareholder market presentations · Board and ExCom meetings · Sponsorship collaborations · Liaison offices · Annual sustainability report |
| Local community
| · Interaction with employees and their families · Educational awareness sessions · Public reports · Career fairs |
| Employees
| · HSSE Newsletter · Regular departmental/team meetings · Employee satisfaction surveys · Town hall meetings with top management · Email communications · QAFAC Newsletter · Annual sustainability report |
| Media
| · Strategic global media engagement programme · Press releases and press conferences · Interviews and meetings · Social media platforms |
| Customers and Muntajat
| · Contracts and agreements · Monthly meetings with Muntajat · Conference and exhibitions · Customer feedback surveys · Memberships in industry associations |
| Contractors and suppliers
| · Contractual arrangements and bidding · Conferences and exhibitions · Third-party endorsement · Medical screening for contractors |
| Non-Governmental Organisations | · Presentations/Briefings · Meetings |
What actions were taken by QAFAC to create economic value for its stakeholders?
In its 2019 Sustainability Report QAFAC reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees, providers of capital and government(s)
- In 2019, QAFAC paid USD 69,684,000 for employee wages and benefits (2018: USD 64,575,000), USD 31,000,000 to providers of capital and USD 31,000,000 to government(s).
- Supporting the local community
- In 2019, QAFAC paid USD 29,000 in community investment. However, QAFAC aspired to augment its contributions to the local community, setting a target of USD million 229 in community investments by 2020, so as to support a thriving socio-economic development in Qatar.
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 QAFAC, 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://www.qafac.com.qa/annual-sustainability-reports
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