What are the material issues the company has identified?  

In its 2022 Sustainability Report Largo identified a range of material issues, such as occupational health and safety, community relations and development, water and effluents, energy and air emissions (climate change). Among these, creating economic value for its stakeholders stands out as a key material issue for Largo.

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 Largo engages with:

Stakeholder Group	Method of engagement
Employees	·      On-going ·      Monthly Coffee with the President ·      2021 Employee Satisfaction Survey
Labour union	·      On-going as needed ·      Formal meetings every two months
On-site contractors	·      On-going as needed ·      Participation in daily safety dialogues, mining safety week, awareness campaigns
Clients	·      Key clients – yearly conference and customer visits ·      2021 Customer Survey
Suppliers – Tier 1	·      Engagement through the supplier qualification process, contract negotiations and performance evaluations
People in Largo’s communities and NGOs	·      Enterprise Monitoring Committee (EMC) – every two months ·      Rural communities – monthly ·      Town of Maracás – monthly
Regulatory agencies	·      On-going through inspections and permit renewals
Municipal government	·      Informal through partnership in projects ·      Representative participates in the PMC meetings every two months
Investment community	·      Quarterly earnings and ad hoc webcasts, industry conferences, press releases, corporate communication strategies, on-going outreach by phone and e-mail
Industry associations	·      IBRAM – Formal virtual monthly meetings

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Largo engaged with its stakeholders through surveys.

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

In its 2022 Sustainability Report Largo reports that it took the following actions for creating economic value for its stakeholders:

• Creating economic value for employees
• In 2022, Largo paid $ 16.2 million for employee wages and benefits.

• Creating economic value for the government
• In 2022, Largo paid $ 36.5 million in taxes and royalties in Brazil.

• Creating economic value for suppliers
• In 2022, Largo paid $ 157.8 million in expenditures with national suppliers.

• Creating economic value for communities
• In 2022, Largo spent $ 0.3 million 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

 

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 Largo, 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://s29.q4cdn.com/562286712/files/doc_downloads/sustainability/2023/Largo-2022-Sustainability-Report.pdf

Note to Largo: 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.