Case study: How Teck creates economic value for its stakeholders
Teck is one of Canada’s leading mining companies, focused on providing products that are essential to building a better quality of life for people around the globe. Teck contributes to the wealth and prosperity of the countries, regions and communities where it operates by generating economic value that includes tax and royalty payments, local hiring and procurement, and community investments.
This case study is based on the 2020 Sustainability Report by Teck, 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.
Teck constantly works to improve the efficiency of its activities and reduce its operating costs, so as to maximise the economic value generated for its stakeholders. Tweet This! In order to create economic value for its stakeholders Teck took action to:
- create economic value for suppliers
- create economic value for employees
- create economic value for providers of capital
- support communities
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With this case study you will see:
- Which are the most important impacts (material issues) Teck has identified;
- How Teck proceeded with stakeholder engagement, and
- What actions were taken by Teck 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 Teck identified a range of material issues, such as health and safety, tailings and mine waste, water quality, indigenous relationships, low-carbon operations. Among these, creating economic value for its stakeholders stands out as a key material issue for Teck.
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 Teck engages with:
Stakeholder Group |
Workforce |
Investors, Financial Institutions |
Communities |
Civil Society, Non-Governmental and Multinational Organisations |
Academic Institutions and Researchers |
Governments |
Indigenous Governments and Communities |
Commercial Interests |
Industry Associations |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Teck remotely engaged with over 50 internal and external stakeholders and Indigenous Peoples through a survey, to gather feedback.
What actions were taken by Teck to create economic value for its stakeholders?
In its 2020 Sustainability Report Teck reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for suppliers
- In 2020, Teck paid $ 5,302 million (operating costs) and $ 3,063 million (capital expenditures) to suppliers.
- Creating economic value for employees
- In 2020, Teck paid $ 1,495 million (operating costs) and $ 66 million (capital expenditures) for employee wages and benefits.
- Creating economic value for providers of capital
- In 2020, Teck paid $ 667 million to providers of capital, which included dividends paid to shareholders, interest paid to debtholders, and payments for share repurchases less issuance of shares.
- Supporting communities
- In 2020, Teck spent $ 19 million in community investments, which include voluntary donations paid during the year. Teck also paid $ 233 million in income and resource taxes.
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 Teck, 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.teck.com/media/2020-Sustainability-Report.pdf
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