Materiality

Focusing on our material issues

To ensure we prioritize the issues that have the most impact on the economy, society and the environment, and that most influence the decision-making of our stakeholders, we conduct a formal materiality analysis every other year.

The materiality process

Materiality is about identifying the issues that matter most to our business and our stakeholders. Every two years, we plot the economic, social and environmental issues that are of most concern to our external stakeholders against those that pose risks or present opportunities to Nestlé. Conducting a thorough materiality analysis in this way not only helps us to identify issues that stakeholders want to see us cover in our reporting, but also helps us to decide where to focus our internal resources. We share the methodology and findings of our latest assessment below.

Our 2018 materiality assessment

For 2018, the materiality process was evolved to bring both non-financial and financial risk identification together and to connect them 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, and involved key markets and growth categories.

This year was our first materiality exercise since switching from the Global Reporting Initiative (GRI) G4 Guidelines to the GRI Standards. We worked with DNV GL, an independent organization, to conduct the assessment using a formal materiality process to ensure alignment with the GRI Standards.

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.

Materiality matrix

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