Materiality

Understanding what matters most to our stakeholders is fundamental to being a purpose-driven organisation. We consider these stakeholder priorities alongside our own assessment of what has the biggest impact on the company and its ability to create value, and the output is presented in the material issues matrix.

Value, in this context, may be created internally (for the company and employees) and there can be external value (for customers, communities, investors, suppliers and the environment). Value may be financial or nonfinancial.

Our stakeholder materiality assessment informs decisions about what we report externally. Setting out issues in this way helps ensure we understand key stakeholder priorities and consider their interests in strategic decision-making.

Our 2023 materiality review

Last year we carried out a thorough review of our material issues and matrix design. Striking the right balance between different interests and views is not easy but our assessment process consolidated feedback based on a balance of views obtained from all our stakeholders.

This year we have completed a light touch review of our material issues, approved by senior management. Storm overflows has increased in significance while COVID-19 has decreased in significance as the country recovers from the pandemic. These moves are reflected in this year’s matrix. Based on current best practice of reviewing material issues every two years, we will undertake a full materiality assessment in the coming year.

Issues are plotted on the matrix from lower to higher in terms of level of interest to stakeholders and how much it can affect our ability to create value. We cross-referenced and aligned identified issues with our principal risks and uncertainties. The most material issues are highlighted in green.