We undertake materiality assessments to determine what we should focus on in our sustainability agenda. The assessment involves:
- identifying current environmental, social and governance (ESG) issues that we can help to manage and mitigate;
- prioritising these issues; and
- validating their relevance with our Sustainability Development Committee and the Board.
To help prioritise our material issues, we plot them on a matrix that indicates how important they are to our business, as well as to our stakeholders.
As events and circumstances change, we review our material issues every year. In 2020, with the upheaval caused by Covid-19, we undertook a completely new materiality assessment which resulted in the addition of four material issues, namely Biodiversity and Reforestation, Policy and Regulation, Governance and Ethics, and Human Rights. At the same time, Market Presence has been removed as a material issue. Based on our latest assessment, we now have 18 material issues as compared to 13 previously, with Packaging, Nutrition, Supply Chain Stewardship, Water Stewardship, Innovation, and Product Quality & Safety featuring as the most important.
To emphasize the importance of ESG, we have incorporated 3 sustainability metrics for all management and executives’ performance in F&NHB – energy intensity ratio, water intensity ratio, and lost time injury frequency rate, which are linked with the annual compensation. These metrics are aligned with our 2025 group commitments.