3.2.1. Materiality analysis process
Solvay bases its materiality analysis on the Sustainability Accounting Standards Board (SASB) approach. It offers an exhaustive, validated list of material aspects to start with. Below you will find more details about why each aspect is material depending of three tests for prioritizing issues and classifying their level of short-term and long-term impacts.
The three tests are:
- Evidence of interest: how frequently the issue appears in publications related to our company or industry;
- Evidence of financial impact: the impact on revenue and cost, assets and liabilities, and risk profile;
- Forward looking impact: how the issue’s importance will evolve over time, in terms of magnitude, probability, or externalities.
- Moderate
- High
- Priority
Business model and innovation
Aspects |
Definition |
Evidence of interest |
Evidence of financial impact |
Forward looking adjustment |
Materiality |
Chemical products economical, environmental and social impacts throughtout the supply chain |
High |
High |
Yes |
|
Environment
Aspects |
Definition |
Evidence of interest |
Evidence of financial impact |
Forward looking adjustment |
Materiality |
Energy production and consumption optimization and management of energy transition |
High |
High |
Yes |
|
|
Greenhouse gas emissions reduction plans. |
High |
High |
Yes |
|
|
Air pollutants emissions reduction plans |
High |
High |
Yes |
|
|
Management of water withdrawals, dicharges and consumption |
High |
Medium |
Yes |
|
|
Management of hazardous materials in raw materials, intermediate products, sold products and wastes. This includes Safety & Environmental Stewardship of Chemicals. |
High |
High |
Yes |
|
Human capital
Aspects |
Definition |
Evidence of interest |
Evidence of financial impact |
Forward looking adjustment |
Materiality |
Non discrimination and diversity management in operations and management structures |
High |
Medium |
Yes |
|
|
Occupational safety, industrial hygiene and health management. Employees and contractors of all sites under Solvay’s operational control are covered. |
High |
High |
Yes |
|
|
Labour relations, employee well-being |
High |
Medium |
Yes |
|
Social capital
Aspects |
Definition |
Evidence of interest |
Evidence of financial impact |
Forward looking adjustment |
Materiality |
Customer relations management, customer loyalty, net promoter score |
Medium |
High |
Yes |
|
|
Community relations |
High |
Low |
No |
|
Leadership and governance
Aspects |
Definition |
Evidence of interest |
Evidence of financial impact |
Forward looking adjustment |
Materiality |
Includes Business ethics and transparency of payments, and |
High |
Medium |
Yes |
|
|
Process safety programs and management of environmental accidents consequences. |
High |
High |
Yes |
|