Case study: How Honkajoki Group creates economic value for its stakeholders
Honkajoki Group is Finland’s leading processor and refiner of animal by-products, refining organic meat production by-products into clean, high-quality and safe products for its customers in various industrial sectors. Trust in its business and financial performance – both within the company and among its stakeholders – is of vital importance to Honkajoki Group, as is the creation of shared value for all its stakeholders.
This case study is based on the 2021 Sustainability Report by Honkajoki Group, 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.
Through its business, Honkajoki Group seeks to generate sustainable, long-term value for all its stakeholders. Tweet This! In order to create economic value for its stakeholders Honkajoki Group took action to:
- create economic value for employees
- create economic value for shareholders
- create economic value for suppliers
- create economic value for the state and society
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With this case study you will see:
- Which are the most important impacts (material issues) Honkajoki Group has identified;
- How Honkajoki Group proceeded with stakeholder engagement, and
- What actions were taken by Honkajoki Group to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Sustainability Report Honkajoki Group identified a range of material issues, such as sustainable and responsible production, customer-oriented approach, strengthening supervisory work, development of initiative activity. Among these, creating economic value for its stakeholders stands out as a key material issue for Honkajoki Group.
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:
Stakeholders must be consulted in the process s 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 Honkajoki Group engages with:
| Stakeholder Group |
| Employees |
| End product customers |
| Suppliers of animal origin raw materials |
| Neighbours |
| Research partners |
| Transport companies |
| Authorities |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Honkajoki Group engaged with its stakeholders through a survey.
What actions were taken by Honkajoki Group to create economic value for its stakeholders?
In its 2021 Sustainability Report c reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Honkajoki Group paid 5 399 016 € for employee wages, 950 659 € in pension costs and 242 955 € in other staff costs.
- Creating economic value for shareholders
- In 2021, Honkajoki Group paid 1 220 400 € in dividends.
- Creating economic value for suppliers
- In 2021, Honkajoki Group paid 19 642 872 € for materials, supplies and goods.
- Creating economic value for the state and society
- In 2021, Honkajoki Group paid 2 084 095 € in VAT, 1 569 142 € in immediate taxes, 50 384 € in property tax, 4 026 € in public charges for vehicles and 27 997 € in 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:
- 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
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References:
This case study is based on published information by Honkajoki Group, 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://honkajokioy.fi/wp-content/uploads/2023/05/honkajoki-sustainability-report-2021-web.pdf
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