ESG 23 Final Single pages - Flipbook - Page 14
MATERIALITY ANALYSIS
It has long been understood that ESG issues can have a
material impact on cash 昀氀ows and the 昀椀nancial value of
a company. The International Sustainability Standards
Board (ISSB) recognises that 昀椀nancially material ESG issues
represent sustainability-related risks and opportunities for
companies. This is also known as an outside-in perspective
on sustainability issues or 昀椀nancial materiality.
Client privacy and data security
2
Colleague diversity and inclusion
3
Colleague health and safety
4
Ethical corporate behaviour
5
Workforce management
6
Human rights
7
Climate change and GHG emissions
However, disruption from major global events is
demonstrating that we must also be accountable for
impacts on society and the planet. This is also known as an
inside-out perspective on sustainability issues or impact
materiality.
8
Client practices
9
Innovation and technology
An understanding of both 昀椀nancial and impact materiality,
double materiality, is key to ensuring clarity over a
company’s material issues, and accordingly what ESG
issues to prioritise in its strategy, budget allocation, public
disclosures, and risk and opportunity identi昀椀cation.
11 Public health risks
Last year we reported we had started identifying and
prioritising material issues using Datamaran’s software as
it enables a data-driven and dynamic process for ESG risk
identi昀椀cation and monitoring. This year RWS was one of the
昀椀rst companies to start utilising Datamaran’s software to
take account of double materiality issues.
Double materiality looks at the risks a company’s activities
pose to the environment and society, as well as those
that the company potentially faces from the external
environment, providing a dual lens from which to inform,
organise, and prioritise topics within an ESG strategy.
Building on last year’s materiality analysis, the Datamaran
software has enabled us to gain a continuous, evidencebased review of ESG-related risks within our regulatory,
competitive, and operating contexts. This approach ensures
that we can continue to build an ESG focus that responds
to external events, evolving business priorities, stakeholder
expectations, and our own performance results.
The materiality survey went to over 80% of our
shareholders, 37.5% of our key clients, our Board, our
Executive Team and our Senior Leadership Team. The
insights from the materiality analysis, showed us that client
privacy and data security; colleague diversity and inclusion;
colleague health and safety; ethical corporate behaviour;
workforce management; human rights; and climate change
and GHG emissions are most important to our stakeholders.
The matrix ranks the materiality of issues raised.
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RWS Holdings plc — ESG Report 2023 SUSTAINABILITY
10 Governance structures
and mechanisms
12 Labour practices
13 Transparency
14 Management of the legal
and regulatory environment
15 Business model resilience
16 Energy management
17 Access and a昀昀ordability
18 Sourcing e昀케ciency
and management
19 Community relations
20 Physical and sociopolitical risks
21 Transition to renewables and
alternative energies
22 Natural capital
23 Competitive behaviour
24 Responsible consumption
and production
25 Waste and hazardous
materials management
26 Selling practices and
product labelling
27 Ecological impacts
