Materiality

To identify and prioritise sustainability matters along our value chain that are most relevant to our business, we analyse inputs from our stakeholders and investors in a materiality analysis. We start our yearly materiality analysis process by identifying possible impact areas as part of our overall risk management process, using a wide range of sources, including OECD sector risks, topical ESRS, GRI standards, and a systematic analysis of stakeholder inputs and expectations. Identified matters are assessed and prioritised at the end of the year by our subject matter experts. The process is coordinated by the sustainability department, responsible for ensuring consistency and alignment of the methodologies and assumptions used, and includes the:

• Identification of relevant sustainability impact areas along our value chain through continuous dialogue with our key stakeholders and international organisations such as ILO, OECD, international trade unions, human rights organisations, and policymakers during the year. 
• Assessment and prioritisation of relevant sustainability impact areas based on the severity and likelihood of the impact. Severity is calculated as the average between the scale, scope and irremediable character of the impact. The assessment of our sustainability impact is closely connected to our overall risk management process, to ensure these processes are aligned. The threshold for impact materiality is based on the inherent impact level. 
• Monitoring and reporting prioritised sustainability matters. Relevant matters are categorised and listed in our overall risk management system along with their associated mitigation plans and actions, and are monitored during the year to follow up on the effectiveness of our actions. Our prioritised matters form the basis of our sustainability strategy and reporting, see the table below for the results of the impact materiality analysis for 2024.

Our value chain