Alecta Archives - SustainCase - Sustainability Magazine Insights on how you can protect the environment, maintain and increase the value of your company, through a structured CSR/Sustainability process with the use of the GRI Standards. Learn how Today's Best-Run Companies are achieving Economic, Social, and Environmental Success - and How You Can Too... Fri, 24 Mar 2023 07:07:34 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.3 Case study: How Alecta creates economic value for its stakeholders https://sustaincase.com/case-study-how-alecta-creates-economic-value-for-its-stakeholders/ Fri, 24 Mar 2023 07:05:55 +0000 https://sustaincase.com/?p=17528 Alecta takes care of the occupational pension for 2.6 million private individuals and 35,000 companies in Sweden. Its mission is to provide the occupational pension with the greatest possible value for both its private and corporate customers. , with the distribution characterised by the mutual concept of maximising the value given back through cost-efficient operations. This case study is based on the 2020 Annual and Sustainability Report by Alecta, 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 […]

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]]> Alecta takes care of the occupational pension for 2.6 million private individuals and 35,000 companies in Sweden. Its mission is to provide the occupational pension with the greatest possible value for both its private and corporate customers. The economic value generated and distributed among its stakeholders reflects Alecta’s capacity  Tweet This!, with the distribution characterised by the mutual concept of maximising the value given back through cost-efficient operations.

This case study is based on the 2020 Annual and Sustainability Report by Alecta, 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

By providing a good, stable occupational pension, Alecta adds value to the national social security system and to the economy, generating sustainable value for a wide range of stakeholders. In order to create economic value for its stakeholders Alecta took action to:

  • create economic value for employees
  • create economic value for suppliers and partners
  • create economic value for the state

What are the material issues the company has identified?

In its 2020 Annual and Sustainability Report Alecta identified a range of material issues, such as strong regulatory compliance, high level of customer privacy, responsible investments. Among these, creating economic value for its stakeholders stands out as a key material issue for Alecta.

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:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

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 Alecta engages with:

Stakeholder Group                Method of engagement
Customers – private and corporate customers

 

 ·      Customer service

·      Surveys

·      E-mail contacts

·      Company visits

·      Networks
Principals – unions and employers

 

 ·      The Board of Directors

·      Committees

·      Seminars

·      Procurements
Employees

 

 

 ·      Employee surveys

·      Whistleblower function

·      The intranet

·      Internal seminars

·      Meetings with the CEO and various meeting forums, such as breakfast and lounge meetings
Partners and suppliers

 

 ·      Negotiations and agreements

·      Forums for cooperation
Society and broader stakeholder groups

 

 ·      Lectures at universities

·      Industry dialogue

·      Meetings with politicians

·      Seminars

·      Media debate

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Alecta engaged with its stakeholders through a stakeholder survey that encompassed client companies, private-sector employees and Alecta employees.

What actions were taken by Alecta to create economic value for its stakeholders?

In its 2020 Annual and Sustainability Report Alecta reports that it took the following actions for creating economic value for its stakeholders:

  • Creating economic value for employees
  • In 2020, Alecta paid 358 SEK million for employee salaries and remuneration.
  • Creating economic value for suppliers and partners
  • In 2020, Alecta paid 633 SEK million to suppliers and partners.
  • Creating economic value for the state
  • In 2020, Alecta paid 557 SEK million in yield tax and income tax in Sweden and abroad as well as social security fees for employees.

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:

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

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  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
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References:

This case study is based on published information by Alecta, 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.alecta.se/globalassets/dokument/finansiella-rapporter/in-english/annual-reports/alecta-annual-and-sustainability-report-2020.pdf

Note to Alecta: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

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