About the report
The Kroton sustainability report is based on Global Reporting Initiative (GRI) methodology. Its purpose is to make the company accountable to its stakeholders and to provide a tool with which to manage sustainability. In accordance with the parameters established by the G4 core option [G4-32], the report encompasses 35 general content items (information on strategy and analysis, organizational profile, material aspects identified and boundaries, stakeholder engagement, report profile, governance, as well as ethics and integrity). A total of 16 indicators for economic, social and environmental performance were also reported, in addition to the management approach towards material aspects. The content covers the period from January 1st to December 31st, 2014[G4-28].
Materiality process
[G4-18, G4-24, G4-25 and G4-26]To define its most relevant topics, Kroton undertook a formal process to identify its positive and negative economic, social and environmental impacts. With support from an external consultancy, an analysis was conducted consisting of strategic documents and topics suggested by strategic stakeholders in previous engagement processes. These include the Kroton strategic map and its performance drivers, material topics for Anhanguera identified during a process conducted in 2013 and topics related to the Kroton group social responsibility projects. The most relevant topics were determined in a four-stage process conducted as follows.
- Identification: selection and analysis of relevant documents.
- Prioritization: matrix and frequency analyses to determine the main topics addressed in the documents.
- Strategic validation: approval of the process and the topics defined by senior management (11 vice presidents and directors). This stage was key because it guided comprehension of the topics, confirming the relevance of each.
The materiality process included consultation of some of Kroton’s main stakeholder groups (employees, students, parents, educators, suppliers, the community, shareholders and government). However, the company is aware that in coming years it will be possible to further engagement and understanding of the impacts generated or perceived by these groups. In a year in which it was involved in a merger, it is natural that the company should establish new guidelines for stakeholder relations which may, after some time, result in a new materiality analysis. [G4-24]
Priority topics
[G4-27]The main topics raised in the materiality study guided the preparation of this report and the definition of its content. GRI methodology data were cross-referenced with the results from the materiality process, identifying the most appropriate GRI aspects for monitoring the advances in each topic considered material (see table) [G4-18].
The following table presents all the material topics, the impacts that make them relevant, how they relate to the GRI methodology and the stakeholders impacted. [G4-18, G4-19, G4-20, G4-21 and G4-27]
| Related GRI aspects | G4 indicators | Stakeholders impacted (within organization) | Stakeholders impacted (outside organization) | Chapter in which topic is addressed |
|---|---|---|---|---|
| Operational excellence and academic quality
(excellent perception of value and a reference in education) |
||||
| Product and service labeling | PR4 | Students and employees | Country, community and government | Economic-financial performance |
| PR5 | Responsibility in relationships – Students / Academic model | |||
| Opening up access to learning
(with a high quality, diversified and scalable portfolio) |
||||
| Local communities | SO1 | Students | Community and government | Responsibility in relationships – Society |
| Indirect economic impacts | EC8 | Responsibility in relationships – Students / Academic model | ||
| Economic performance | EC4 | Economic-financial performance | ||
| Economic and financial performance
(maximizing return on investment and finance to support growth) |
||||
| Economic performance | EC1 | Employees | Suppliers, government and shareholders | Economic-financial performance |
| Employability and income | ||||
| Market presence | EC5 | Students | Country, community and government | Responsibility in relationships – Students |
| Elevated corporate governance standards and processes | ||||
| Governance | G4-34 | Employees | Government and shareholders | Corporate governance |
| Managing people and organizational culture
(training and qualification of employees and partnerships for acquisition of competencies) |
||||
| Training and education | LA9 | Employees and students | Suppliers | Responsibility in relationships – Employees |
| LA10 | Responsibility in relationships – Employees | |||
| Efficient use of resources | ||||
| Materials | EN2 | Employees and students | Suppliers and shareholders | Responsibility in relationships – Environmental performance |
| Water | EN8 | Responsibility in relationships – Environmental performance | ||
| Water | EN3 | Responsibility in relationships – Environmental performance | ||
| Social and environmental programs and projects for the community | ||||
| Indirect economic impacts | EC7 | Employees and students | Community and government | Responsibility in relationships – Society |