Neles’ materiality assessment serves as a base for the sustainability agenda and defines the scope of sustainability reporting. The assessment identifies the most important sustainability topics for Neles and its stakeholders, such as employees, customers, suppliers, shareholders, and business partners. The results highlight the actions we need to take to meet our stakeholders’ expectations.

Our goal within the sustainability sphere is to be a reliable partner offering sustainable solutions. We conduct materiality assessments to find the right direction for our sustainability agenda and to focus on the expectations our stakeholders have. Likewise, our impact on society plays a crucial role in defining our sustainability priorities. We continuously consult our key stakeholders to evaluate the materiality of various environmental, social, and economic topics to our business. 

The most recent materiality assessment was carried out in 2021, and we intend to repeat the process every second year, as the global sustainability scene is constantly changing.

What materiality means to Neles

A topic is material to Neles when it meets two criteria:

  1. Neles’ ability to make a considerable impact on the topic, or the topic’s ability to make a considerable impact on Neles, and
  2. The topic is important to our business or to our stakeholders.

This means material topics are those that reflect our significant economic, environmental, and social impacts, risks, and opportunities, or that substantively influence the assessments and decisions of our stakeholders. Materiality determines which topics are important enough that we need to report on them. Not all topics are equally important, and the emphasis within our sustainability reports, communication, and agenda reflect their relative priority.

Our materiality assessment process

Our most recent materiality assessment was conducted in 2021. In this process, we implemented the double materiality approach, which is unique from past assessments. With this concept, we are not only exploring the impact that Neles has on stakeholders’ social, environmental, or economic issues, but also the impact that sustainable development has on our business.

Assessment process

We follow a 3-step process starting with a thorough background analysis of potential material topics, trends, and drivers from various sources. Secondly, we categorize the topics and ask for our stakeholders’ views regarding the impact and importance of them. For this, we primarily use a quantitative online survey, which is sent out to key stakeholders. The survey link is also shared on social media and openly accessible on neles.com.

The stakeholder input is finally analyzed, and the topics are prioritized according to their importance to both Neles and its stakeholders. In a series of workshops with representatives of key internal stakeholders, the two-way impact of the topics is defined. Finally, the results are evaluated by key experts before being approved by management.

Assessment results

As a result of the materiality assessment in 2018, three focus areas were defined: Health and safety, Environment, and Society and People. These three focus areas remain the same after the assessment of 2021, as they continuously cover the most significant sustainability issues for Neles. The results are utilized in shaping our approach to Sustainability and form our core actions.

Materiality assessment results

The Sustainability Agenda has been approved by Neles’ Executive Team and is reviewed annually against any changes in business targets, the business environment, and stakeholder expectations.

Read more about sustainability at Neles