Case study: How SMPC creates economic value for its stakeholders
Semirara Mining and Power Corporation (SMPC) is the largest coal producer in the Philippines, and the only power producer in the country that owns and mines its own fuel source (coal). Delivering sustainable value to all its stakeholders, is a top priority for SMPC. Tweet This!
This case study is based on the 2021 Annual and Sustainability Report by SMPC, 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.
In 2021, SMPC’s registered blockbuster earnings benefitted all its stakeholders in taxes and royalties, debt repayments, dividends, and employee remuneration. In order to create economic value for its stakeholders SMPC took action to:
- create economic value for employees
- create economic value for providers of capital
- 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) SMPC has identified;
- How SMPC proceeded with stakeholder engagement, and
- What actions were taken by SMPC 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 SMPC identified a range of material issues, such as occupational health and safety, emissions, socio-economic compliance, biodiversity, market presence. Among these, creating economic value for its stakeholders stands out as a key material issue for SMPC.
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 s 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 SMPC engages with:
| Stakeholder Group | Method of engagement |
| Employees
| · Safety Committee meetings · Integrated Management System (IMS) meetings · Multi-partite Monitoring Team · Integrity hotline and whistleblowing · Focus group discussions, consultations · Toolbox meetings, town halls · Impact assessment and studies · Information, Education, and Communication programmes · Internal communication (Postman email and text blast) |
| Suppliers, contractors, and business partners | · Safety Committee meetings · Integrity hotline and whistleblowing · Focus group discussions, consultations · Toolbox meetings, town halls · Site visits, tours, and inspections |
| Regulators and government agencies
| · Multi-partite Monitoring Team · Integrity hotline and whistleblowing · Focus group discussions, consultations · Impact assessment and studies · Site visits, tours, and inspections · Consultations, meetings |
| Local government units
| · Multi-partite Monitoring Team · Integrity hotline and whistleblowing · Focus group discussions, consultations · Impact assessment and studies · Site visits, tours, and inspections · Consultations, meetings · Information, Education, and Communication programmes |
| Customers
| · Integrity hotline and whistleblowing · Focus group discussions (FGDs), consultations · Site visits, tours, and inspections |
| Investors and shareholders
| · Integrity hotline and whistleblowing · Investor briefings, conferences · Annual Stockholders’ Meeting |
| Host communities and non-governmental organisations (NGOs)
| · Multi-partite Monitoring Team · Integrity hotline and whistleblowing · Focus group discussions, consultations · Impact assessment and studies · Site visits, tours, and inspections · Consultations, meetings · Information, Education, and Communication programmes |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics SMPC engaged with its stakeholders through survey questionnaires and focus group discussions.
What actions were taken by SMPC to create economic value for its stakeholders?
In its 2021 Annual and Sustainability Report SMPC reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, SMPC paid PHP 2,655 billion for employee benefits and wages.
- Creating economic value for providers of capital
- In 2021, SMPC paid PHP 13,615 billion to providers of capital.
- Creating economic value for the government
- In 2021, SMPC paid PHP 7,165 billion to the government.
- Creating economic value for communities
- In 2021, SMPC spent PHP 112 billion 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 SMPC, 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.semiraramining.com/uploads/documents/PDFs/2021%20SMPC%20ASR.pdf
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