Materiality Assessment
Clariant conducts comprehensive materiality assessments on a regular basis to determine which material topics have the greatest impact on the company’s ability to create long-term value. Prioritizing material topics related to performance, people, and planet aligns well with Clariant’s strategic pillars.
1. Ongoing assessment of material topics
Clariant continually evaluates the materiality of economic, environmental, and social topics. A comprehensive materiality assessment conducted in 2017 identified the issues that were most relevant to Clariant and its stakeholders, enabling the prioritization initiatives. Clariant uses regular stakeholder interactions and market monitoring to make necessary adjustments to its materiality matrix. In 2020, after discussions with stakeholders and management indicated that the topics of Climate Change and Digitalization were increasing in importance, the materiality matrix was updated. Regarding Climate Change, Clariant foresees increasing pressure from regulators and a heightened focus among investors, and is thus allocating increased resources to the topic and ramping up efforts to reduce CO2 emissions. On the topic of Digitalization, the 2020 lockdowns made virtual collaboration with stakeholders a necessity – a change that will most likely persist beyond the pandemic and help to accelerate the adoption of digital approaches to increase customer intimacy, launch new products faster, and explore innovative business models to improve customer satisfaction and operate more efficiently. Read more in Natural Capital and Intellectual Capital
The next comprehensive materiality assessment is planned for 2021.
2. Based on recognized standards and procedures
The comprehensive materiality assessment conducted in 2017 was based on two internationally recognized frameworks: the Integrated Reporting
As a first step in the process, Clariant compiled an extensive list of economic, environmental, and social topics covered by these frameworks, as well as topics from other sources, including the Sustainability Accounting Standards Board (SASB), the UN Global Compact, and the UN Sustainable Development Goals. This comprehensive list was supplemented with topics that were previously identified by Clariant or its peers. The resulting list of over 400 topics was then consolidated to fewer than 50.
Second, each topic was evaluated by stakeholders who provided their perspective on the relevance for Clariant and by senior Clariant managers who assessed the importance in terms of Clariant’s value creation. The managers’ assessment included their view on the topics’ potential influence on strategy development and achievement, market positioning and growth opportunities, risk and reputation management, and compliance. By considering these risks and opportunities, Clariant indirectly accounted for impacts on sustainable development.
3. Broad stakeholder inclusion
External and internal stakeholders were also asked in this 2017 assessment to share which topics they deemed most relevant to future value creation. Clariant ensured a balanced representation of interests in this process by applying carefully defined selection criteria. Worldwide surveys of management and stakeholders were conducted in English, German, Spanish, Portuguese, and Mandarin as needed.
Overall, 131 external stakeholders, 69 employees, and 36 managers provided feedback during this assessment. External stakeholders included customers, nongovernmental organization representatives, sustainability experts, scientists, and suppliers. Senior management evaluated and validated the outcomes in a follow-up workshop.
4. Materiality Matrix
The Clariant Materiality Matrix summarizes the results of the materiality assessment. The relevance of topics to Clariant’s value creation is shown on the horizontal axis, while the relevance of the topics to stakeholders is depicted on the vertical axis. The topics fall into three categories: Cultivate, Advance, and Focus. Focus topics are essential to Clariant’s ability to create long-term value; Advance topics offer opportunities that will allow Clariant to better meet expectations; Cultivate topics support successful value creation in the future.
Current developments, activities, and achievements for each material topic are found throughout the Integrated Report, particularly in the Multicapital Review.
For Focus and Advance topics, Clariant has formulated dedicated management approaches that are found in the GRI Report.
001 CLARIANT MATERIALITY MATRIX
Stakeholders are people or groups whose interests are linked in various ways with those of a company. They include shareholders, business partners, employees, neighbors, and the community. View entire glossary
Stakeholders are people or groups whose interests are linked in various ways with those of a company. They include shareholders, business partners, employees, neighbors, and the community. View entire glossary
The business model illustrates how a company draws on various capitals as inputs and converts them into outputs, such as products and services, through its business activities. The company’s activities and outputs lead to outcomes that affect the capitals, thus impacting the company and its stakeholders. View entire glossary
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
Compliance is a key element of Corporate Governance. It refers to compliance with the law and directives as well as with voluntary codes within the company. View entire glossary
