How We Manage Our Economic Performance
Our economic performance is managed as part of our business strategy. For a comprehensive account of our economic performance, see our Annual Report. Our Green Book measures our environmental and social profit and loss 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:
- Customer orders are fulfilled
- Value is delivered to our shareholders
- Value is delivered through our services to society
- Employees are offered competitive salaries and benefits
- Obligations to suppliers and creditors are met
- 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 more than 85,000 employees, and a supply chain of over 90,000 suppliers, our indirect economic impacts are extensive and also difficult to quantify. Some examples include:
- Safety and 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 are working with Uganda's Ministry of Works and Transport to design, implement and perform roadworthiness inspections nationwide, thereby contributing to the enhancement of road safety and the reduction of transport related vehicle emissions. Additionally, the program will benefit Uganda through investment in infrastructure, including the newest test equipment, and the sharing of international best practices, and it will create job opportunities for both men and women who will have access to training to become best-in-class in their profession
- Securing investment: Various services we provide help to give investors the confidence they need to fund projects. We help manage project risks by managing the entire process, from the qualification of technical teams, monitoring service quality, and optimizing equipment maintenance time. For example, SGS has been commissioned to provide preventive and corrective maintenance of electrical and mechanical instrumentation at two major petrochemical facilities – Terminal Marítimo Almirante Soares Dutra and Terminal de Rio Grande in Brazil
- Enhancing skills and knowledge: The SGS Academy is a global network delivering training courses to SGS employees and customers in multiple languages, with 47 centers globally. SGS provides tailored training programs in professional and industry-specific skills, certification standards and legal compliance, many of which are accredited or certified. In addition, SGS actively engages stakeholders in knowledge transfer and exchange through specially designed webinars, seminars, and white papers written by technical experts across numerous fields. For example, during 2015, SGS published a white paper on the REACH SVHC chemical safety and environmental protection Regulation, focusing on reducing compliance costs while increasing confidence in the compliance process (see ‘SGS REACH SVHC Smart Solutions – Achieve Compliance by Risk Based Evaluation with Reasonable and Cost Effective Approach’). We also published a paper on the Proliferation, Regulation and Mitigation of Persistent Organic Pollutants (POPs) in Consumer Products and Supply Chains, offering an expert overview on current thinking within the consumer goods industry on how best to manage POPs risk in consumer products and supply chains. (See ‘Proliferation, Regulation and Mitigation of Persistent Organic Pollutants (POPs) in Consumer Products and Supply Chains')
Many of our services have indirect economic impacts – for more information on our services see Sustainability Services.