Case study: How SFS creates economic value for its stakeholders
SFS is a leading global provider of mechanical fastening systems and precision components, made up of the three segments: Engineered Components, Fastening Systems and Distribution & Logistics. For SFS, economic performance and the value it generates for all its stakeholders is at the centre of its daily business operations and decisions. Tweet This!
This case study is based on the 2021 Sustainability Report by SFS, 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
SFS’s daily mindset and actions are centred around economic performance and, therefore, on the creation of sustainable added value for all its stakeholder groups. In order to create economic value for its stakeholders SFS took action to:
- create economic value for employees
- create economic value for investors
- create economic value for the government
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With this case study you will see:
- Which are the most important impacts (material issues) SFS has identified;
- How SFS proceeded with stakeholder engagement, and
- What actions were taken by SFS 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 SFS identified a range of material issues, such as occupational health and safety, emissions, human rights, socioeconomic compliance. Among these, creating economic value for its stakeholders stands out as a key material issue for SFS.
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 SFS engages with:
Stakeholder Group |
Customer |
Employees |
Community/ local authorities |
Supplier |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics SFS engaged with its stakeholders through a survey.
What actions were taken by SFS to create economic value for its stakeholders?
In its 2021 Sustainability Report SFS reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, SFS paid CHF 3 million in personnel expenses.
- Creating economic value for investors
- In 2021, SFS paid CHF5 million in dividends to shareholders and CHF 1.5 million in interest expense.
- Creating economic value for the government
- In 2021, SFS paid CHF7 million in tax expense and CHF 4.8 million in public levies.
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 SFS, 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://sustainability.sfs.biz/en/
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