CN 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... Wed, 20 Mar 2024 14:42:14 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 Case study: How CN creates economic value for its stakeholders https://sustaincase.com/case-study-how-cn-creates-economic-value-for-its-stakeholders/ Wed, 20 Mar 2024 07:03:42 +0000 https://sustaincase.com/?p=17520 CN is a leading North American transportation and logistics company offering fully integrated rail and other transportation services, with a 19,500-mile network that spans Canada and Mid-America, connecting ports on three coasts. through spending on goods and services, positive shareholder returns, tax contributions to the different levels of government, and community investments. This case study is based on the 2020 Sustainability Report by CN, 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 […]

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]]> CN is a leading North American transportation and logistics company offering fully integrated rail and other transportation services, with a 19,500-mile network that spans Canada and Mid-America, connecting ports on three coasts. As a major employer of nearly 23,000 people in North America, CN contributes to the wealth and prosperity of the communities and regions where it operates  Tweet This! through spending on goods and services, positive shareholder returns, tax contributions to the different levels of government, and community investments.

This case study is based on the 2020 Sustainability Report by CN, 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.

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Abstract

CN’s strategic long-term approach to investments, together with its continued focus on efficiency and deployment of innovative technology, as well as its commitment to enabling trade, position it to keep delivering long-term value to all its stakeholders. In order to create economic value for its stakeholders CN took action to:

  • create economic value for employees
  • create economic value for suppliers
  • create economic value for shareholders
  • create economic value for governments
  • create economic value for communities

What are the material issues the company has identified?  

In its 2020 Sustainability Report CN identified a range of material issues, such as climate change, operational safety, customer service and satisfaction, safety culture and management. Among these, creating economic value for its stakeholders stands out as a key material issue for CN.

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 CN engages with:

Stakeholder Group                Method of engagement
Investors

 

 ·      Earnings calls

·      Non-deal roadshows

·      Sell-side-sponsored conferences

·      Investor meetings
Customers ·      Agricultural Advisory Council
Governments

 

 ·      Participation in advisory councils, review boards and regulatory proceedings
Employees

 

 

 ·      Communication through both formal and informal channels

·      Employee Engagement Survey
Employees

 

 ·      Meetings

·
Suppliers

 

 ·      Annual supplier council

·      Sustainable Procurement Excellence programme
Communities

 

 ·      Participation in industry associations

·      Community boards
Indigenous peoples ·      Participation in Indigenous organisations

·      Indigenous Advisory Council

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics CN engaged with its stakeholders through an electronic survey among employees, suppliers, governments, railway associations, customers, investors, unions, Aboriginal peoples, community groups, and NGOs, receiving input from 378 stakeholders.

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

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

  • Creating economic value for employees
  • In 2020, CN paid $2.7B for employee wages and salaries.
  • Creating economic value for suppliers
  • In 2020, CN paid $3.3B to suppliers.
  • Creating economic value for shareholders
  • In 2020, CN paid $2B to shareholders.
  • Creating economic value for governments
  • In 2020, CN paid $353M to governments (tax payments).
  • Creating economic value for communities
  • In 2020, CN spent $12M in community sponsorships and 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:

 

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

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

  • Exclusive FBRH template to begin reporting from day one
  • Identify your most important impacts on the Environment, Economy and People
  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
  • Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

 

References:

This case study is based on published information by CN, 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.cn.ca/en/delivering-responsibly/

Note to CN: 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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