From the first year of sustainability reporting, the Group has initiated a materiality assessment process that has evolved over time, with the aim of continuous improvement. For the 2024 reporting, a more structured update of the materiality assessment in line with the principle of Double Materiality, referred to in ESRS 1 “General Requirements”, was carried out in accordance with current regulations.
Double Materiality is articulated in two parts: impact (effects on society and the environment) and financial (risks and opportunities affecting the company’s economic performance). Material matters are identified and contextualised through an assessment process that takes into account the interconnections between these aspects.
The Double Materiality Assessment enabled the Group to identify and report on the most significant sustainability matters, including impacts on the economy, environment and human rights.
The Double Materiality Assessment process is illustrated below, with the aim of providing an overview of the approach adopted by the Group to identify impacts, risks and opportunities, (hereinafter also referred to as “IROs”) as well as to assess their significance.
Materiality definition process
As a first step in the Double Materiality process, a preliminary review of the Materiality Assessment was conducted in compliance with past reporting standards (GRI). This activity made it possible to address some ESRS aspects not covered in the last financial year’s reporting and to assess the validity of the matters already mapped, taking into account the latest trends and best practices. In the course of this process, the analyses carried out underwent an in-depth review, with the aim of refining and updating the topics identified, taking into account newly identified information and needs.
At the end of this preliminary activity, a process was initiated to map potential IROs applicable to the Group, with the aim of defining a long list of IROs.
The steps followed to create the long list were as follows:
— Drawing up a preliminary list of sustainability matters, based on the results obtained from the previous materiality assessment and the information from the analysis of the internal and external context;
— Correlation of the identified aspects with the topics, subtopics and sub-subtopics in Annex A Application Requirements 16 of ESRS 1 “General Requirements”;
— Mapping of impacts, risks and opportunities (long list impact and long list financial) through an in-depth analysis of the Group’s business and its value chain, with the aim of identifying the direct and indirect impacts arising from internal operations and the activities of strategic suppliers and customers.
As part of this activity, the relevant IROs were identified, considering the main operations carried out by the Group and its partners along the chain. Each impact was associated with its own ‘perimeter’, determining the point in the value chain where it is generated, dividing it into upstream, own operations and downstream. The analysis was conducted following the due diligence procedures for sustainability, focusing on business activities and business relationships, in order to intercept possible impacts, risks and opportunities in an accurate and structured manner.
The main inputs considered covered both the Group’s own operations and the activities carried out by strategic suppliers and customers, ensuring a complete and integrated view of actual and potential impacts along the entire value chain.
Finally the IRO long lists was shared with the Investor Relations & Sustainability function, in order to proceed with further refinements and obtain final validation.