The materiality process
Our comprehensive materiality analysis is carried out every two years. This helps us to identify the economic, social and environmental issues that matter most to our business and our stakeholders. Conducting a thorough analysis in this way not only helps in identifying issues to be covered in our reporting but also helps us to decide where to focus our internal resources.
Our 2018 materiality assessment
In 2018, the materiality process was evolved to bring both non-financial and financial risk identification together and to connect it more closely to business operations. In addition to identifying and prioritizing issues from internal and external stakeholders, the 2018 materiality assessment integrated with the Enterprise Risk Management process, harnessed the perspectives of mainstream investors, engaged with key markets and growth categories and included a deep-dive value analysis of four key research questions.
The issues identified were placed on a matrix (see below), their position relative to the degree of stakeholder interest and potential business impact. These results represent the material issues facing our business. The issues should not be viewed in isolation; they are increasingly interconnected, and oftentimes changes in one can have an impact on others.
See the definitions of our material issues and how they map across our value chain.
Nestlé materiality matrix (as assessed in 2018)
Note: Natural disasters, identified as an issue relevant to Nestlé, fell under the negligible category and so has been omitted from our materiality matrix.