To determine which levers offer the highest potential for value creation in the long run, Clariant conducts comprehensive materiality assessments at regular intervals. The prioritization of material topics related to performance, people, and planet is well aligned with Clariant’s strategic pillars.
1. Based on recognized standards and procedures
The latest materiality assessment, performed in 2017, identified and prioritized the issues that matter most to Clariant and its stakeholders. It was based on two internationally recognized frameworks: the Integrated Reporting
Then, Materiality was evaluated in two dimensions: stakeholders provided feedback on the relevance of each topic for Clariant from their perspective, and senior managers across the company assessed the importance of each topic for value creation by Clariant. The latter assessment included the potential influence of each issue on strategy development and achievement, market positioning and growth opportunities, risk management, compliance, and reputation management. Through considering the risks and opportunities linked to Clariant’s external impacts, the process indirectly took Clariant’s potential effect on various aspects of sustainable development into account.
2. Broad stakeholder inclusion
Both external and internal stakeholders were invited to express which topics they deemed most relevant for future value creation, with carefully defined selection criteria ensuring a balanced representation of interests among invited participants. Management and stakeholder surveys were conducted worldwide, with the latter offered in English, German, Spanish, Portuguese, and Mandarin.
Overall, 131 external stakeholders, 69 employees, and 36 managers gave feedback. Seventy-four customers included in the external stakeholder group responded to the survey, in addition to non-governmental organization representatives, sustainability experts, scientists, and suppliers. The outcome was evaluated and validated by senior management in a workshop that was part of the 2017 assessment.
In 2018, the materiality assessment was reviewed to look for topics that had become more or less relevant during the year. In particular, recent stakeholder interactions and management discussions indicated that two topics – circular economy and digitalization – had become more relevant both to stakeholders and to value creation. The materiality matrix was refreshed accordingly.
3. Materiality Matrix
The results of the comprehensive materiality assessment are summarized in the Clariant Materiality Matrix Figure 001, which shows topics considered moderately to highly relevant. The matrix depicts the relevance of the topics from the stakeholder point of view on the vertical axis and relevance for value creation by Clariant on the horizontal axis.
The topics are categorized in three areas: Cultivate, Advance, and Focus. Focus topics are at the core of Clariant’s ability to create long-term value; further improvements regarding Advance topics allow Clariant to better meet company and stakeholder expectations; Cultivate topics support successful value creation in the future.
Reporting that extends traditional formats of corporate disclosure in order to communicate the full range of factors that significantly affect an organization’s ability to create value through its business model. An integrated report provides insight about the resources used and impacted by the company – collectively referred to as »the capitals« – and their interdependence. It reflects and supports integrated thinking and decision-making that focuses on the creation of value over the short, medium, and long term. View entire glossary
For Focus topics as well as for Advance topics, Clariant has established management approaches. reports.clariant.com/2018/gri Current developments, activities, and achievements for each topic can be found throughout the Integrated Report, especially in the Multicapital Review.
Focus topics are further illustrated by dedicated interviews with internal and external experts:
Growth and Profitability What Will Help Us Succeed in China?, Talent Attraction and Development What Helps People Reach Their Full Potential?, Innovation and Technological Advances Where Can We Help Accelerate Innovation?, Environmental Protection and Resources When Can We Advance the Shift to Renewable Energy?, Occupational Health, Safety, and Well-being Where Can We Improve Safety Even Further?, Product Stewardship/Sustainable Chemistry Why Does It Pay to Focus on Sustainability?, Digitalization Who Shapes New Digital Business Models?, Customer Relationships What Will Our Customers Expect from Us Tomorrow?, Circular Economy Where Can Chemistry Help Close the Plastics Loop?