• The capitals
• Value creation
• Stakeholder relationships

Key observations:

The section “Value Creation Process” (p18-19) illustrates clearly how material capitals are transformed through GS E&C’s business model into tangible value for the company and its key stakeholders (International <IR> Framework section 2D). An additional layer “Sustainability trends” has been added to the illustration providing greater context about the societal drivers affecting the organization’s use of capitals and value creation process including “Science and Technology”, “Changes in population structure” and “Global environmental change”.

GS E&C “6 Capitals” section (p36-73) provides a detailed description of the value creation attributed to e.g. “Industrial Capital” incorporating both impacts on the organization’s future competitiveness, creation of new market opportunities and potential risks diminishing capital investment (International <IR> Framework section 4D). The section provides the reader with a good example of how “The capitals are stocks of value that are increased, decreased or transformed through the activities and outputs of the organization” (International <IR> Framework para 2.11)

Finally the report is well presented and logically structured (International <IR> Framework, para. 3.9) with a good mix of illustrations, graphs, text and links to supporting information e.g. GRI tables, which together enhances readability and understanding of the business model and each capital’s role in the value creation process.