Our Approach to Economic Performance
Our economic performance is managed as part of our 2014 Plan. For a comprehensive discussion, see our Annual Report. Our Green Book measures our ‘triple bottom line’ by applying financial values to a range of indicators on people, environment and community and progress on these is reported to senior management every six months.
The content of this webpage has been verified and assured.
Many stakeholders rely on our economic performance, both inside and outside the company. Strong economic performance means:
- Value is delivered to our shareholders
- Employees are offered competitive salaries and benefits
- Obligations to suppliers and creditors are met
- Customer orders are fulfilled
- Governments gain tax revenues
- Local communities receive investment
We do not receive any significant financial assistance from governments. We do benefit from incentives in the form of grants from certain government schemes, for example, energy saving incentives, but these are of low value.
Please see our Performance section for data on economic value generated and distributed this year.
With over 80,000 employees, and a supply chain of over 50,000 suppliers in our trend countries alone, our indirect economic impacts are extensive but difficult to quantify. Some examples include:
- Efficiency: we work with organizations and governments to increase efficiency and productivity, and improve social and environmental conditions, often in less economically developed regions. For example, we help governments in various countries, such as Indonesia, to monitor and manage their forests, to prevent illegal logging. In Haiti, we have helped the government to tax international phone calls more effectively, the revenues from which have been used to establish a new national Fund for Education
- Securing investment: various services we provide help to give investors the confidence they need to fund projects. We help manage project risks by providing independent advice on issues such as technical due diligence, project monitoring and installation inspections. We are members of the Water Benefit Partners program, which aims to give donors and investors the information and guarantees they need to invest in projects tackling water scarcity
- Enhancing skills and knowledge: the SGS Academy is a global network delivering training courses to SGS employees and customers in multiple languages, with 35 centers throughout the world. SGS provides tailored training programs in professional and industry-specific skills, certification standards and legal compliance, many of which are accredited or certified. Examples include:
- Given the local shortage of suitably qualified candidates, SGS West Africa has established a Minerals Training Academy in Ghana to create a talent pipeline
- The SGS Academy in South Africa offers more than 170 training courses across 20 categories leading to formal qualifications. The integrated approach combines health, safety, environmental and quality risk management topics delivered through public and in-house courses, and e-learning
- We have formed a strategic partnership with the World Medical Device Organization (WMDO) to offer over 200 e-learning courses to medical device professionals, complementing the ‘classroom’ training and learning programs provided by the SGS Academy
Many of our services have indirect economic impacts – for more information on our services see Sustainability Services.