SQM 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... Tue, 07 Mar 2023 07:28:56 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.3 Case study: How SQM creates economic value for its stakeholders https://sustaincase.com/case-study-how-sqm-creates-economic-value-for-its-stakeholders/ Fri, 24 Feb 2023 07:33:44 +0000 https://ccprowebs.com/new-sustaincase.com/?p=14787 SQM is a global mining company operating in northern Chile and present in industries that are strategic for sustainable development, such as health, food, technology and the clean energies that move the world. SQM seeks to create value for all its stakeholders through responsible resource management, sustainable expansion projects and the improvement of its existing operations. This case study is based on the 2020 Sustainability Report by SQM, 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: […]

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]]> SQM is a global mining company operating in northern Chile and present in industries that are strategic for sustainable development, such as health, food, technology and the clean energies that move the world. SQM seeks to create value for all its stakeholders through responsible resource management, sustainable expansion projects and the improvement of its existing operations.

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

In 2020, the total economic value distributed by SQM reached ThUS$ 1,884,248.  Tweet This! In order to create economic value for its stakeholders SQM took action to:

  • create economic value for providers of capital
  • create economic value for the government
  • support the community

What are the material issues the company has identified?

In its 2020 Sustainability Report SQM identified a range of material issues, such as responsible supply chain management, environmental regulation and compliance, protecting worker health in terms of professional diseases and workplace safety, community management and engagement. Among these, creating economic value for its stakeholders stands out as a key material issue for SQM.

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 SQM engages with:

Stakeholder Group
Employees
Shareholders or investors
Contractors and suppliers
Customers
Community
Organisations and institutions
Authorities
Media

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics SQM engaged with its stakeholders through interviews, followed by workshops with various areas of SQM that interact with stakeholders.

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

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

  • Creating economic value for providers of capital
  • In 2020, SQM paid ThUS$ 567,684 to providers of capital.
  • Creating economic value for the government
  • In 2020, SQM spent ThUS$ 83,922 in payments to the government.
  • Supporting the community
  • In 2020, SQM spent ThUS$ 5,513 in investments in the community (including donations, community investment and commercial 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:

 

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 SQM, 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.sqm.com/wp-content/uploads/2021/06/Reporte-Sostenibilidad-2020-EN.pdf

Note to SQM: 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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