Solvay bases its materiality analysis on the Sustainability Accounting Standards Board (SASB) approach.  It offers an exhaustive, validated list of material aspects to start with. Below you will find more details about why each aspect is material depending of three tests for prioritizing issues and classifying their level of short-term and long-term impacts.

The three tests are:

  • Evidence of interest: how frequently the issue appears in publications related to our company or industry;
  • Evidence of financial impact: the impact on revenue and cost, assets and liabilities, and risk profile;
  • Forward looking impact: how the issue’s importance will evolve over time, in terms of magnitude, probability, or externalities.
  • Moderate
  • High
  • Priority

Business model and innovation

Aspects

Definition

Evidence of interest

Evidence of financial impact

Forward looking adjustment

Materiality

Sustainable business solutions

Chemical products economical, environmental and social impacts throughtout the supply chain

High
High materiality for the Chemical industry
Solvay is more CO2-intensive than the average of the chemical industry

High
Revenue/cost: yes
Asset/liability: yes
Cost of capital: no

Yes
Probability/magnitude: yes
Externalities: yes

Environment

Aspects

Definition

Evidence of interest

Evidence of financial impact

Forward looking adjustment

Materiality

Energy

Energy production and consumption optimization and management of energy transition

High
High materiality for the Chemical industry
Solvay is more energy-intensive than the average of the chemical industry

High
Revenue/cost: yes
Asset/liability: yes
Cost of capital: no

Yes
Probability/magnitude: yes
Externalities: yes

Greenhouse gas emissions

Greenhouse gas emissions reduction plans.

High
High materiality for the Chemical industry
Solvay is more CO2-intensive than the average of the chemical industry

High
Revenue/cost: yes
Asset/liability: yes
Cost of capital: no

Yes
Probability/magnitude: yes
Externalities: yes

Air quality

Air pollutants emissions reduction plans

High
High materiality for the Chemical industry

High
Revenue/cost: yes
Asset/liability: yes
Cost of capital: no

Yes
Probability/magnitude: yes
Externalities: yes

Water and wastewater

Management of water withdrawals, dicharges and consumption

High
High materiality for the Chemical industry

Medium
Revenue/cost: yes
Asset/liability: yes
Cost of capital: no

Yes
Probability/magnitude: yes
Externalities: yes

Waste and hazardous materials

Management of hazardous materials in raw materials, intermediate products, sold products and wastes. This includes Safety & Environmental Stewardship of Chemicals.

High
High materiality for the Chemical industry
REACH/SVHC; Kyoto protocol

High
Revenue/cost: yes
Asset/liability: yes
Cost of capital: no

Yes
Probability/magnitude: yes
Externalities: yes

Human capital

Aspects

Definition

Evidence of interest

Evidence of financial impact

Forward looking adjustment

Materiality

Diversity and inclusion

Non discrimination and diversity management in operations and management structures

High
Specific item of 2014/95/EU
High for 4 pilot GBUs (regional)

Medium
Revenue/cost: yes
Asset/liability: no
Cost of capital: no

Yes
Probability/magnitude: yes
Externalities: yes

Employee health and safety

Occupational safety, industrial hygiene and health management. Employees and contractors of all sites under Solvay’s operational control are covered.

High
High materiality for the Chemical industry

High
Revenue/cost: yes
Asset/liability: yes
Cost of capital: no

Yes
Probability/magnitude: yes
Externalities: yes

Employee engagement and wellbeing

Labour relations, employee well-being

High
Historical commitment of the Solvay group since its foundation

Medium
Revenue/cost: yes
Asset/liability: yes
Cost of capital: no

Yes
Probability/magnitude: no
Externalities: yes

Social capital

Aspects

Definition

Evidence of interest

Evidence of financial impact

Forward looking adjustment

Materiality

Customer welfare

Customer relations management, customer loyalty, net promoter score

Medium
High for some business units (access to customers development pipeline)

High
Revenue/cost: yes
Asset/liability: no
Cost of capital: no

Yes
Probability/magnitude: yes
Externalities: yes

Societal actions

Community relations
Corporate citizenship and philanthropy
Business programs for social needs

High
May be linked to license to operate

Low
Revenue/cost: no
Asset/liability: yes
Cost of capital: no

No
Probability/magnitude: no
Externalities: no

Leadership and governance

Aspects

Definition

Evidence of interest

Evidence of financial impact

Forward looking adjustment

Materiality

Management of the legal, ethics and regulatory framework

Includes Business ethics and transparency of payments, and
Competitive behavior

High
High materiality for the Chemical industry
Rising legislative requirements for the chemical industry

Medium
Revenue/cost: yes
Asset/liability: yes
Cost of capital: no

Yes
Probability/magnitude: yes
Externalities: yes

Process accident and safety

Process safety programs and management of environmental accidents consequences.

High
High materiality for the Chemical industry

High
Revenue/cost: yes
Asset/liability: yes
Cost of capital: no

Yes
Probability/magnitude: yes
Externalities: yes