What are the material issues the company has identified?

In its 2020-21 Sustainability Report LTFH identified a range of material issues, such as corporate governance, sustainable finance, human capital development, risk and crisis management. Among these, creating economic value for its stakeholders stands out as a key material issue for LTFH.

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 LTFH engages with:

To identify and prioritise material topics LTFH engaged with its stakeholders through the following channels:

Stakeholder Group	Method of engagement
Employees	·      Regular interactions ·      Training sessions ·      Performance appraisal ·      Annual reward and recognition programme ·      STAR awards ·      Medical counselling sessions ·      Employee volunteering programme – Boondein
Customers	·      Regular business interactions ·      Customer satisfaction survey ·      Dealer meets and engagement activities ·      Press releases ·      Regular media interactions ·      Advertisements ·      Social media
Investors (Shareholders)	·      Annual general meetings ·      Quarterly and annual results ·      Investor and analyst quarterly meetings and con calls ·      Investor conferences/ Road shows ·      Annual report ·      Quarterly results communications through social media, LTFS website and press release
Regulatory bodies	·      Compliance reports ·      Industry Bodies
Communities	·      Baseline and Needs Assessment surveys ·      End-line surveys and Social Impact Assessments ·      Co-creating community engagement programme models ·      Capacity building workshops ·      Monitoring and Evaluation

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

In its 2020-21 Sustainability Report LTFH reports that it took the following actions for creating economic value for its stakeholders:

• Creating economic value for employees
• In 2021, LTFH paid ₹ 1,007.06 Cr. for employee wages and benefits.

• Creating economic value for providers of capital
• In 2021, LTFH paid ₹ 7,199.92 Cr. to providers of capital.

• Creating economic value for governments
• In 2021, LTFH paid ₹ 901.51 Cr. to governments.

• Creating economic value for society
• In 2021, LTFH paid ₹ 17.88 Cr. in CSR initiatives.

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.

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References:

This case study is based on published information by LTFH, 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.ltfs.com/content/dam/lnt-financial-services/home-page/csr/documents/sustainability_report-2018-19/2020-21/LTFH%20Sustainability%20Report%20FY2021.pdf

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