Solvay
2019 Annual Integrated Report

Solvay bases its materiality analysis process on the Sustainability Accounting Standards Board (SASB) materiality approach. It offers an exhaustive, validated list of material aspects to start with, as listed in the SASB’s Materiality MapTM. Below are more details about Solvay’s assessment for each aspect.

  • Moderate
  • High
  • Priority

Business model and innovation

Issues

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 materiality for the chemical industry;
Solvay is more CO2-intensive than the chemical industry average

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

Yes
Probability/magnitude: yes
Externalities: yes

Environment

Issues

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 chemical industry average

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

Yes
Probability/magnitude: yes
Externalities: yes

Greenhouse gas emissions

Scope 1 and 2 greenhouse gas emissions reduction

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

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

Yes
Probability/magnitude: yes
Externalities: yes

Air quality

Air pollutant emissions reduction

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, dicharge 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

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

Issues

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 of employees and contractors

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 well-being

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

Issues

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

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

Issues

Definition

Evidence of interest

Evidence of financial impact

Forward looking adjustment

Materiality

Management of the legal, ethics and regulatory framework

Alignment to ethics and regulatory frameworks

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

Critical incident risk management

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

Note: "Ecological Impacts" (biodiversity) is currently under assessment. "Evidence of Interest" is high for the "Planet" group of stakeholders and for Communities but more work is needed on fully assessing Solvay’s impact on biodiversity to conclude if the issue is high materiality.