Case study: How Sagax creates economic value for its stakeholders

Founded in 2004, AB Sagax invests in commercial properties with a focus on warehouses and light industrial property, owning and managing a property portfolio in established markets across Europe that are forecasted to experience strong commercial activity and growth. Long-term value creation for all its stakeholders, is key to Sagax’s strategy. Tweet This!
This case study is based on the 2022 Sustainability Report by Sagax, 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
Sagax’s business model is characterised in all areas by a long-term approach. Short-term gains are subordinate to the company’s long-term, meaning sustainable, value creation for all its stakeholders. In order to create economic value for its stakeholders Sagax took action to:
- create economic value for employees
- create economic value for the state
- create economic value for creditors
- create economic value for owners
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With this case study you will see:
- Which are the most important impacts (material issues) Sagax has identified;
- How Sagax proceeded with stakeholder engagement, and
- What actions were taken by Sagax to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2022 Sustainability Report Sagax identified a range of material issues, such as climate adaptation, anti-corruption, more efficient energy consumption, employee skills. Among these, creating economic value for its stakeholders stands out as a key material issue for Sagax.
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 Sagax engages with:
To identify and prioritise material topics Sagax engaged with its stakeholders through the following channels:
Stakeholder Group | Method of engagement |
Shareholder
| · Board meetings, of which one meeting each year is a strategy meeting · Meetings with owner representatives for special discussions about corporate governance · General Meeting · Financial statements |
Employees
| · Employee dialogue · Workshops · Business planning · Annual conference for all employees · Regular reviews with all employees about the company’s policies |
Lenders
| · Individual meetings with banks and representatives from the capital markets · Dialogue regarding financial statements |
Tenants
| · Customer meetings · Regular dialogue about property management with each facility management firm of the properties · Dialogue between tenants and the appointed asset manager for each property |
Suppliers
| · In procurement, following-up framework agreements and purchase orders · At supplier meetings |
What actions were taken by Sagax to create economic value for its stakeholders?
In its 2022 Sustainability Report Sagax reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2022, Sagax paid SEK 135 million in employee expenses.
- Creating economic value for the state
- In 2022, Sagax paid SEK 937 million in tax.
- Creating economic value for creditors
- In 2022, Sagax paid SEK 492 million to creditors.
- Creating economic value for owners
- In 2022, Sagax paid SEK 1,111 million to owners (proposed dividend).
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 Sagax, 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.sagax.se/sites/default/files/2023-05/H%C3%A5llbarhet%202023%20ENG.pdf
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