Case study: How Tronox creates economic value for its stakeholders
Tronox is the world’s leading vertically integrated manufacturer of titanium dioxide pigment, with global operations positioned to meet the needs of customers around the world. Its global presence gives Tronox the opportunity to have a direct and indirect positive economic impact for its employees and shareholders, as well as for the communities in which it operates, through wages, taxes, spending with local suppliers and community investments.
This case study is based on the 2021 Sustainability Report by Tronox, 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
Generating long-term, sustainable value for a wide range of stakeholders is a top priority for Tronox. Tweet This! In order to create economic value for its stakeholders Tronox took action to:
- create economic value for employees
- create economic value for providers of capital
- 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) Tronox has identified;
- How Tronox proceeded with stakeholder engagement, and
- What actions were taken by Tronox 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 Tronox identified a range of material issues, such as climate change, health and safety, procurement practices, water and effluents, diversity and inclusion. Among these, creating economic value for its stakeholders stands out as a key material issue for Tronox.
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 Tronox engages with:
To identify and prioritise material topics Tronox engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Employees
| · Town halls · Face-to-face meetings · Newsletters · Surveys and focus groups · Email newsletters · Intranet |
| Communities
| · Face-to-face meetings · Site tours · Community forums · External events · Community sponsorships |
| Investors and lenders | · Sell-side hosted conferences · Externally hosted events including non-deal roadshows · Company hosted events including investor days · Face-to-face meetings · Calls · Email newsletters · Investor relations website · Press releases |
| Customers | · Face-to-face meetings · Site tours |
| Suppliers | · Face-to-face meetings · Site tours · Letters · Contractor safety forums |
| Government and regulators | · Face-to-face meetings · Site tours · Letters |
| Non-governmental bodies and industry initiatives | · Face-to-face meetings · Site tours · Community forums · Sponsorship agreements |
What actions were taken by Tronox to create economic value for its stakeholders?
In its 2021 Sustainability Report Tronox reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, 22.6% of the economic value distributed by Tronox (whose 2021 revenue was US$3.572 billion) went to employee wages and benefits.
- Creating economic value for providers of capital
- In 2021, 7.0% of the economic value distributed by Tronox (whose 2021 revenue was US$3.572 billion) was payments to providers of capital.
- Creating economic value for the government
- In 2021, 2.3% of the economic value distributed by Tronox (whose 2021 revenue was US$3.572 billion) was payments to the government.
- Creating economic value for communities
- In 2021, 0.1% of the economic value distributed by Tronox (whose 2021 revenue was US$3.572 billion) was 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 Tronox, 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.tronox.com/wp-content/uploads/2022/06/061322_FINAL-1_Sustainability_Report.pdf
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