Case study: How the Motor Oil Group creates economic value for its stakeholders
The Motor Oil Group is a 50-year-old energy group with 82 companies covering a broad range of refining, distribution and other activities in the wider energy spectrum. The Motor Oil Group seeks to generate shared value for all its stakeholders Tweet This!, including its employees, consumers, shareholders and investors, business partners and vendors, local communities, the government and regulatory authorities, the media, industry associations, and society in general.
This case study is based on the 2020 Sustainability Report by the Motor Oil 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.
In 2020, the economic value distributed by the Motor Oil Group reached 585 million euros. In order to create economic value for its stakeholders the Motor Oil Group took action to:
- create economic value for employees
- create economic value for capital providers
- create economic value for the government
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) the Motor Oil Group has identified;
- How the Motor Oil Group proceeded with stakeholder engagement, and
- What actions were taken by the Motor Oil Group 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 the Motor Oil Group identified a range of material issues, such as security and emergency preparedness & response, occupational health & safety, equal opportunities, diversity & human rights, product quality and customer H&S. Among these, creating economic value for its stakeholders stands out as a key material issue for the Motor Oil 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 s 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 Motor Oil Group engages with:
| Stakeholder Group | Method of engagement |
| Employees
| · Ongoing, two-way communication between employees and management through corporate announcements, briefings, intranet, working groups and various events |
| Consumers | · Ongoing dialogue with the customers and proactive communication · Ongoing communication and satisfaction survey |
| Shareholders & Investors
| · Regular communication through conference calls, roadshows, annual analysts briefing, company’s website, press releases and announcements, the Annual Financial Report and Sustainability Report, and regular attendance at investor conferences · Publish targets and commitment · Transparent and regular reporting · Responding to questionnaires of rating agencies |
| Business partners & vendors
| · Training programmes that provide interested parties with essential information on health, safety and environmental protection issues, for which compliance requirements are exceptionally strict and closely monitored · Collaboration with partners to enhance the Motor Oil Group’s sustainability performance · Perform regular audits to suppliers / contractors |
| Local Communities
| · Continuous communication and interaction with local communities through local councils and other agencies such as private associations and organisations |
| Government & Regulatory Authorities | · Open and honest, two-way communication and cooperation with competent Public Authorities is maintained, ensuring the supply of information required by each body, as well as documented discussion on any arising issues · Sharing views on laws regularly with officials and legislators through public consultations, meetings, as well as with policymakers |
| Media | · Direct communication through the relevant department/division to best serve the media · Actively responding to media events and interviews |
| Industry Associations | · Open, continuous, two-way communication as well as cooperation when and where needed through reciprocal supply of information/data and participation in meetings, events etc. · Membership in all relevant organisations |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics the Motor Oil Group engaged with over 400 representatives of key stakeholder groups through a materiality questionnaire.
What actions were taken by the Motor Oil Group to create economic value for its stakeholders?
In its 2020 Sustainability Report the Motor Oil Group reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2020, the Motor Oil Group paid 165.5 million euros in employee salaries and benefits.
- Creating economic value for capital providers
- In 2020, the Motor Oil Group paid 125.5 million euros to capital providers.
- Creating economic value for the government
- In 2020, the Motor Oil Group paid 11.2 million euros in taxes.
- Creating economic value for communities
- In 2020, the Motor Oil Group spent 2.6 million euros in community investments.
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 Motor Oil 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.moh.gr/en/environment-society/esg-and-sustainability/
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