Process for the materiality analysis
We used the following steps to arrive at the choice of material topics and to determine the Materiality Matrix for 2021:
- We changed the grouping of our material topics in 2021. This approach resulted in a set of ten material topics. Two material topics are no longer featured in this set. These are ‘Stedin Group's Reputation’ and 'Heat transition’. ‘Stedin Group's Reputation’ is omitted because we target this by doing the right things in the right way. 'Heat transition’ is no longer featured because this is now part of the material topic 'Stakeholder dialogue and environment'. A number of topics have been combined. ‘Capacity for change of the organisation', 'Sufficient technical staff' and 'Training and development' are now part of the topic 'Good employment practice'. 'Data security, privacy and cybersecurity', together with 'Safety at work and in the environment', is now part of 'Safety and security'. 'Social responsibility in the supply chain' is part of 'Positive impact on people and environment', and 'Contributing to the energy transition' is part of 'Investing in infrastructure'. One new topic has been added. That is 'Affordable and efficient services', with a view to public support for the energy transition.
- The material topics were reviewed, adopted and ranked by the Board of Management in 2021. The Board of Management is responsible for management and control in relation to the material topics. This takes place by means of reports on the adopted KPIs, each issued at their own frequency (monthly, quarterly and half-yearly).
- The Supervisory Board also discussed the material topics at its meeting held on 15 December 2021, after which the Board of Management and the Supervisory Board agreed on a joint ranking of the material topics.
- In a written survey, we asked representatives of our stakeholder groups to determine what impact each of the material topics has on their business operations. In this way, they determine which topics we should highlight in our annual report. The stakeholders did not add any potential new material topics. We defined the following stakeholder groups:
- internal: the members of the Works Council;
- external: business customers, private customers, shareholders, local environment/communities, government and regulators, suppliers, the energy supply chain, NGOs, investors and rating agencies and partners. A total of 164 stakeholders indicated the impact of each topic.
- The result of the steps referred to above is reflected in the Materiality Matrix. In the Connectivity table, we show how the material topics (including their description) correlate to our strategy, risks, KPIs and objectives and the Social Development Goals of the United Nations.