Case study: How the AdP Group creates economic value for its stakeholders
The AdP Group (Águas de Portugal), founded in 1993, designs, builds, operates and manages water supply and wastewater treatment systems within a framework of economic, financial, technical, social and environmental sustainability. As an entirely state owned public limited company, the AdP Group seeks to engage in actions that generate value for all its stakeholders Tweet This!, through the continuous improvement of the services provided and the adoption of cost rationalisation measures and financial risk management policies.
This case study is based on the 2021 Sustainability Report by the AdP Group, 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 2021, the economic value distributed by the AdP Group reached € 852 990 303. In order to create economic value for its stakeholders the AdP Group took action to:
- create economic value for employees
- create economic value for providers of capital
- create economic value for the state
- create economic value for society
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With this case study you will see:
- Which are the most important impacts (material issues) the AdP Group has identified;
- How the AdP Group proceeded with stakeholder engagement, and
- What actions were taken by the AdP Group 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 the AdP Group identified a range of material issues, such as climate change, conservation and valuation of hydric resources, sustainable water consumption, innovation, resilience of water infrastructures, anticipation and management of risks and crises. Among these, creating economic value for its stakeholders stands out as a key material issue for the AdP Group.
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 the AdP Group engages with:
| Stakeholder Group |
| Community |
| Clients |
| Shareholders |
| Regulatory, licensing, inspection entities |
| NGOs |
| AdP Group companies |
| Funding entities |
| Trade unions |
| Grantor |
| Media |
| Universities |
| Associations and entities |
| Employees |
| Suppliers |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics the AdP Group engaged with its stakeholders through surveys.
What actions were taken by the AdP Group to create economic value for its stakeholders?
In its 2021 Sustainability Report the AdP Group reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, the AdP Group paid € 106 831 972 in employee costs.
- Creating economic value for providers of capital
- In 2021, the AdP Group paid € 61 074 906 to providers of capital.
- Creating economic value for the state
- In 2021, the AdP Group paid € 65 006 048 to the state.
- Creating economic value for society
- In 2021, the AdP Group spent € 404 871 in donations.
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 the AdP Group, 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.adp.pt/en/sustainability/sustainability-reports/downloads/file507_gb.pdf
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