Case study: How SQM creates economic value for its stakeholders
SQM is a global mining company operating in northern Chile and present in industries that are strategic for sustainable development, such as health, food, technology and the clean energies that move the world. SQM seeks to create value for all its stakeholders through responsible resource management, sustainable expansion projects and the improvement of its existing operations.
This case study is based on the 2020 Sustainability Report by SQM, 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
In 2020, the total economic value distributed by SQM reached ThUS$ 1,884,248. Tweet This! In order to create economic value for its stakeholders SQM took action to:
- create economic value for providers of capital
- create economic value for the government
- support the community
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With this case study you will see:
- Which are the most important impacts (material issues) SQM has identified;
- How SQM proceeded with stakeholder engagement, and
- What actions were taken by SQM to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020 Sustainability Report SQM identified a range of material issues, such as responsible supply chain management, environmental regulation and compliance, protecting worker health in terms of professional diseases and workplace safety, community management and engagement. Among these, creating economic value for its stakeholders stands out as a key material issue for SQM.
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 SQM engages with:
| Stakeholder Group |
| Employees |
| Shareholders or investors |
| Contractors and suppliers |
| Customers |
| Community |
| Organisations and institutions |
| Authorities |
| Media |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics SQM engaged with its stakeholders through interviews, followed by workshops with various areas of SQM that interact with stakeholders.
What actions were taken by SQM to create economic value for its stakeholders?
In its 2020 Sustainability Report SQM reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for providers of capital
- In 2020, SQM paid ThUS$ 567,684 to providers of capital.
- Creating economic value for the government
- In 2020, SQM spent ThUS$ 83,922 in payments to the government.
- Supporting the community
- In 2020, SQM spent ThUS$ 5,513 in investments in the community (including donations, community investment and commercial initiatives).
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 SQM, 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.sqm.com/wp-content/uploads/2021/06/Reporte-Sostenibilidad-2020-EN.pdf
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