Case study: How Sandfire creates economic value for its stakeholders
Sandfire Resources Limited is an Australian mining and exploration company listed on the Australian Securities Exchange. Sandfire’s business is underpinned by a demonstrated commitment to the highest standards of safety, responsibility and sustainability. Accordingly, Sandfire seeks to build strong, lasting relationships with its stakeholders, creating shared value for all. Tweet This!
This case study is based on the 2021 Annual and Sustainability Report by Sandfire, 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
Sandfire is committed to developing resources responsibly and driving innovation in its people and industry, all key for creating long-term growth and value for every stakeholder. In order to create economic value for its stakeholders Sandfire took action to:
- create economic value for employees
- create economic value for shareholders
- create economic value for local suppliers
- support communities
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With this case study you will see:
- Which are the most important impacts (material issues) Sandfire has identified;
- How Sandfire proceeded with stakeholder engagement, and
- What actions were taken by Sandfire to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Annual and Sustainability Report Sandfire identified a range of material issues, such as operating responsibly, safety, health and wellbeing, climate change, tailings and waste. Among these, creating economic value for its stakeholders stands out as a key material issue for Sandfire.
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 Sandfire engages with:
To identify and prioritise material topics Sandfire engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Employees
| · Employee engagement surveys · ESG and materiality surveys · Performance reviews · Committees and working groups · Newsletters and company announcements |
| Contractors/ Suppliers
| · Meetings · Site visits |
| Local Communities
| · Meetings · Site visits · Community events and activities · Stakeholder Committees · Materiality surveys · Media (brochures, radio, tv, website) |
| NGO’s and Not for Profits
| · Partnership progress reports · Meetings · Site visits · Community events and activities · Stakeholder Committees · Materiality surveys · Media (brochures, radio, tv, website) |
| Indigenous Peoples
| · Meetings · Heritage surveys and site visits · Agreement negotiations |
| Government/ Regulators
| · Meetings · Regulatory reporting · Site visits |
| Investors
| · Quarterly results reporting · Half yearly reporting · Annual reporting · Annual General Meeting · ASX announcements · Website · Investor roadshows, briefings and forums |
What actions were taken by Sandfire to create economic value for its stakeholders?
In its 2021 Annual and Sustainability Report Sandfire reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- The people who work with Sandfire are its greatest asset. Accordingly, Sandfire aims to create an inclusive and supportive workplace, where people are empowered. In FY2021, Sandfire paid $60,800 for employee benefits, wages and salaries.
- Creating economic value for shareholders
- In FY2021, Sandfire paid $259 million ($1.55 per share) in cumulative Dividends to shareholders.
- Creating economic value for local suppliers
- In FY2021, Sandfire paid $296,854,236 to local suppliers in Australia, $240,409,013 to local suppliers in Western Australia and $11,840,273 to local suppliers in the Mid West Economic Region, WA.
- Supporting communities
- In FY2021, Sandfire spent $497,358 in voluntary community investment (partnership contributions, sponsorships and donations, in-kind contributions).
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 Sandfire, 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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