Case study: How Samarco creates economic value for its stakeholders
Samarco Mineração S.A. is a privately held Brazilian company with more than four decades of history and operations focused on the extraction and processing of iron ore and the production of pellets for the global steel industry. Samarco seeks to optimise the transformation of mineral resources into value for its stakeholders and society Tweet This! in a safe, efficient and innovative manner, today and in the future.
This case study is based on the 2021 Sustainability Report by Samarco, 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
The purpose of carrying out mining differently, with a vision of shared value, is at the heart of Samarco’s business model. In order to create economic value for its stakeholders Samarco took action to:
- create economic value for employees
- create economic value for capital providers
- create economic value for the government
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) Samarco has identified;
- How Samarco proceeded with stakeholder engagement, and
- What actions were taken by Samarco to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Sustainability Report Samarco identified a range of material issues, such as ethics, governance and transparency, community engagement and participation, safe, sustainable and responsible production. Among these, creating economic value for its stakeholders stands out as a key material issue for Samarco.
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 Samarco engages with:
| Stakeholder Group |
| Shareholders |
| Customers |
| Employees |
| Executives |
| Suppliers |
| Contractors |
| Research institutions |
| Government |
| Community |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Samarco engaged with its stakeholders through online panels, interviews and questionnaire rounds.
What actions were taken by Samarco to create economic value for its stakeholders?
In its 2021 Sustainability Report Samarco reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Samarco paid BRL 259,704.00 for employee salaries and benefits.
- Creating economic value for capital providers
- In 2021, Samarco paid BRL 9,526.00 to capital providers.
- Creating economic value for the government
- In 2021, Samarco paid BRL 452,225.22 to the government.
- Creating economic value for communities
- In 2021, Samarco spent BRL 2,721.69 in 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
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References:
This case study is based on published information by Samarco, 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.samarco.com/wp-content/uploads/2022/08/Samarco_-Sustainability-Report-2021.pdf
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