Case study: How RWE creates economic value for its stakeholders
RWE AG is a leading international company in the area of climate-friendly electricity generation headquartered in Essen, Germany. RWE seeks to create sustainable value for its stakeholders with its products and solutions across its value chain in the form, among others, of jobs and the purchasing power generated by wages and salaries.
This case study is based on the 2021 Sustainability Report by RWE, 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 2021, the value distributed by RWE amounted to € 4,024 million Tweet This!, as compared to € 3,851 million in 2020. In order to create economic value for its stakeholders RWE took action to:
- create economic value for employees
- create economic value for the government
- create economic value for shareholders
- 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) RWE has identified;
- How RWE proceeded with stakeholder engagement, and
- What actions were taken by RWE 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 2021 Sustainability Report RWE identified a range of material issues, such as CO2 emissions in power plants, employee development, respect for human rights in the supply chain, expansion of renewable energy. Among these, creating economic value for its stakeholders stands out as a key material issue for RWE.
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 RWE engages with:
| Stakeholder Group |
| Investors |
| Analysts |
| Customers |
| Academics |
| Policymakers |
| Representatives of environmental organisations and other community groups |
| Local government agencies |
| Neighbours around RWE’s locations and other citizens |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics RWE carried out an online survey among its stakeholders in July 2021.
What actions were taken by RWE to create economic value for its stakeholders?
In its 2021 Sustainability Report RWE reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, RWE paid € 2,502 million for employee wages, salaries, and social security contributions.
- Creating economic value for the government
- In 2021, RWE paid € 690 million to the government (taxes and deductions).
- Creating economic value for shareholders
- In 2021, RWE paid € 111 million in earnings share to shareholders. The net income / earnings shares of the shareholders of RWE AG amounted to € 721 million.
- Supporting communities
- In 2021, RWE spent € 5.4 million in donations, € 1.7 million in sponsorship and € 0.04 million in volunteering.
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, IEMA, 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 RWE, 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:
Note to RWE: 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.