Case study: How the FS Italiane Group creates economic value for its stakeholders
The FS Italiane Group, active in Italy and abroad, creates and operates passenger and freight railway, road and motorway transport works and services, organised into four operating segments: Transport, Infrastructure, Real Estate Services and Other Services. The FS Italiane Group seeks to balance economic targets with social and environmental goals, creating sustainable value for the business, stakeholders and all the areas in which the Group operates. Tweet This!
This case study is based on the 2021 Sustainability Report by the FS Italiane 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 FS Italiane Group reached 10,444 million Euros. In order to create economic value for its stakeholders the FS Italiane Group took action to:
- create economic value for employees
- create economic value for suppliers
- create economic value for financial backers
- create economic value for public bodies
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With this case study you will see:
- Which are the most important impacts (material issues) the FS Italiane Group has identified;
- How the FS Italiane Group proceeded with stakeholder engagement, and
- What actions were taken by the FS Italiane 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 FS Italiane Group identified a range of material issues, such as ethical and responsible business, inclusion, enhancement and development of people, mitigation of climate change, value for customers. Among these, creating economic value for its stakeholders stands out as a key material issue for the FS Italiane 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 FS Italiane Group engages with:
To identify and prioritise material topics the FS Italiane Group engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| FS people and trade unions | · Group intranet portal – WE · Events/webinars · Assessment interviews · Comment cards · Trade union panels and meetings |
| Bodies and institutions
| · Specific meetings · Corporate communications · Surveys · Protocols of understanding · Stakeholder panels |
| Customers and Passengers | · Special investigations · Market research · Workshops, seminars · Special communication channels · Social networks · Stakeholder panels |
| Civil society and local communities | · Specific meetings · Work groups · Press releases · Social networks · Interviews · Stakeholder panels |
| Financial community
| · Regular presentations · Individual and group meetings · Roadshows · ESG rating surveys |
| Suppliers and business partners | · Work groups/meetings · Conferences · Audits · Questionnaires · Stakeholder panels |
| Shareholders
| · Regular presentations · Individual and group meetings · Shareholders’ meeting |
| Media
| · Press releases · Social networks · Events · Interviews |
What actions were taken by the FS Italiane Group to create economic value for its stakeholders?
In its 2021 Sustainability Report the FS Italiane Group reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, the FS Italiane Group paid 4,764 million Euros in personnel expenses.
- Creating economic value for suppliers
- In 2021, the FS Italiane Group paid 5,336 million Euros in operating costs for materials and services.
- Creating economic value for financial backers
- In 2021, the FS Italiane Group paid 160 million Euros to financial backers.
- Creating economic value for public bodies
- In 2021, the FS Italiane Group paid 184 million Euros to public bodies.
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 FS Italiane 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:
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