Purpose & ESG

Every Group, every business activity, and every colleague is guided by a single shared purpose: to care for people, the planet, and our performance. The courage to care about a better world - both for today and for generations to come - naturally aligns with our approach to Environmental, Social and Governance (ESG). ESG is a framework used to assess an organization's material impacts on people and environment and the material effects of sustainability matters on the organization's development, performance and position.

Over the course of the year, we have continued to focus on the three key elements of ESG that we defined back in 2018: Diversity, Equity & Inclusion (DEI), Safety, and GHG (greenhouse gas) emissions - all of which will be discussed in more detail below.

The ‘inside-out’ view considers the impact of a Group’s activities on people and the environment. 

The ‘outside-in’ view, meanwhile, evaluates how the risks and opportunities that arise from these topics impact the Group’s financial performance.

The individual Group assessments were then consolidated into an SHV-wide DMA.

The aim is to develop a transparent method of reporting based on relevant sustainability-related material topics in line with CRSD guidelines. This will also enable us to allocate time and resources to the topics that have the most significant impact on our business. And it will help us to maximize positive outcomes for SHV, our stakeholders and society at large.

2024 marked our very first DMA and it involved a steep collective learning curve. One of the key takeouts was the need for a process to keep the DMAs up to date over time.

Understanding the interests and views of our stakeholders is essential for bringing our purpose to life, building trust in society, and solving important problems. This annual process is therefore designed to systematically collect input from both internal and external stakeholders – including customers, suppliers, NGOs, academics and opinion leaders. It will also factor in sustainability reports from other organizations, which will serve as an important benchmark for our double material topics.

In 2024, the DMA identified 10 material topics for the consolidated SHV level, which is the basis for our first CSRD compliant annual report in 2027, assuming the current understanding of the Omnibus legislation proposal. Our 2027 reporting strategy currently envisions to obtain limited assurance (a level of assurance at an acceptable level that, based on professional judgment, is meaningful for the intended users). We will continue refining this process, updating DMAs, adjusting reporting scope, and creating a roadmap for non-financial reporting compliance in the years leading up to 2027.

• Climate change mitigation

• Climate change adaptation

• Energy usage

ESRS S1: Own Workforce

• Health and Safety

• Gender equality and equal pay for work of equal value

• Training and skills development

• Diversity

ESRS S2: Workers in the value chain

• Health and Safety

• Child labor and Forced labor

ESRS G1: Corporate Governance

• Corruption and bribery

Over 2024, we will continue to report on the topics on which we have focused during the past few years: GHG emissions for Scope 1 and 2 emissions, Safety, and Diversity, Equity & Inclusion (DEI). Going forwards, these subjects will be integrated into the CSRD and ESRS framework.

SHV and the Groups have developed a formal structure to ensure full compliance with the CSRD reporting and disclosure requirements. This includes reporting manuals, data models based on the new reporting processes, IT systems, and organizational requirements. The SHV CSRD team is taking the lead on the 10 material topics common to all the Groups and participations, while the individual Groups will take responsibility for their own specific topics.

To guide this process, the Commission has developed a catalogue of economic activities to determine if these activities substantially contribute towards a sustainable economy based on Technical Screening Criteria (TSC). SHV is required to evaluate the sustainability of its business activities based on these criteria. To advance this initiative, we have established a dedicated project structure with representation across the Groups.