Double materiality analysis
The 2022 Corporate Sustainability Reporting Directive (CSRD) requires companies to report their impact on various aspects of sustainability as well as the financial consequence of their impact.
Sandvik initiated a double materiality assessment to determine material topics. The impact materiality assessment was done to be compliant with the GRI (Global Reporting Initiative) materiality assessment. We will continue to develop the process and aim to include a complete double materiality assessment in the 2024 Annual Report.
Sandvik has based its materiality assessment on the topics included in the CSRD. The topics were evaluated from a severity and likelihood perspective, based on a stakeholder engagement process and external input. The stakeholders identified were ESG (Environment, Social, Governance) experts in our organization, suppliers, shareholders/investors, customers and NGOs. The stakeholder process included workshops and interviews. The assessment was also based on external reports, legislation and frameworks.
- Anti-bribery and anti-corruption
- Business ethics governance
- Climate related opportunities (downstream)
- Diversity, equity and inclusion
- Employment and labor relations
- Employee health and safety
- Energy consumption
- Equal opportunities
- Human rights
- Materials sourcing
- Opportunities within resource use and circular economy
- Reduction of GHG emissions
- Scope 3 emissions
- Waste management
A topic is material if the company has an actual or potential significant impact on people or the environment connected to the topic. A topic is also material if it triggers financial effects on the company that are likely to influence its future cash flow. Changes in material topics from last year includes addition of Materials sourcing.
We have defined a number of stakeholders who can be expected to be affected by Sandvik or have an effect on Sandvik, of which the most significant are customers, employees and investors.