Case study: How Sofidel creates economic value for its stakeholders
Sofidel Group was founded in 1966 and is one of the largest producers of paper for hygienic and domestic uses (tissue) in the world: toilet paper, kitchen towels, napkins, handkerchiefs and tissues. Sofidel’s business model combines sustainability and innovation, two key levers that drive change, promote new market opportunities, and create shared value for all its stakeholders.
This case study is based on the 2021 Integrated Report by Sofidel, 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
Creating shared value with a strategic, global, multi-stakeholder approach is a top priority for Sofidel. Tweet This! In order to create economic value for its stakeholders Sofidel took action to:
- create economic value for employees
- create economic value for suppliers
- create economic value for capital suppliers
- create economic value for public administrations
- create economic value for the community
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With this case study you will see:
- Which are the most important impacts (material issues) Sofidel has identified;
- How Sofidel proceeded with stakeholder engagement, and
- What actions were taken by Sofidel to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Integrated Report Sofidel identified a range of material issues, such as climate change and reduction of emissions into the atmosphere, health and safety of workers, ethics and transparency, respect for human rights. Among these, creating economic value for its stakeholders stands out as a key material issue for Sofidel.
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 Sofidel engages with:
| Stakeholder Group | Method of engagement (Inform) |
| Environment
| · Voluntary disclosure initiatives · Product environmental information · Adhesion to stakeholder initiatives to collect information · Website, social media, corporate newsletter · Intranet · Certification bodies · Sofidel internal committees |
| Shareholders | · Consolidated Financial Statements and Report on Operations · Integrated Report · Corporate website · Financial solidity and sustainability |
| Community
| · Corporate website · Integrated Report · Giuseppe Lazzareschi Foundation website · PR and social media · Soft & Green blog |
| Financial community
| · Consolidated Financial Statements and Report on Operations · Integrated Report · Corporate website · Bank Meetings · Information on request · PR |
| Consumers and customers
| · Newsletter · Corporate website · Commercial and service sites · Social media · SofidelShop · Sales documentation · Communication campaigns · Integrated Report |
| Trade suppliers and partners | · Corporate website · Supplier guidelines · Integrated Report · Dedicated website for suppliers · Future Magazine |
| Institutions | · Corporate website · Integrated Report · Social media, PR media and events · Soft & Green blog |
| Sofidel Group people | · Intranet Portal · Communications from top management · Integrated Report · Group organisational communications · ‘People & Paper’ House Organ · Sofidel Informa/ News · Distribution of HR guidelines, policy and procedures · Sofidel Channel · Soft & Green blog |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Sofidel engaged with its stakeholders through one-on-one interviews and a workshop.
What actions were taken by Sofidel to create economic value for its stakeholders?
In its 2021 Integrated Report Sofidel reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Sofidel paid 366,663 thousand Euros to employees.
- Creating economic value for suppliers
- In 2021, Sofidel paid 1,523,068 thousand Euros to suppliers.
- Creating economic value for capital suppliers
- In 2021, Sofidel paid 33,098 thousand Euros to capital suppliers.
- Creating economic value for public administrations
- In 2021, Sofidel paid 29,054 thousand Euros to public administrations.
- Creating economic value for the community
- In 2021, Sofidel spent 1,248 thousand Euros for the community.
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 Sofidel, 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:
http://integrated-report.sofidel.com/site/assets/files/1/report_sofidel2021_eng.pdf
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