According to the GRI Standard methodology, a sustainability topic is material (impact materiality) if it is related to negative or positive, actual or potential impacts on the economy, environment, and people, including impacts on their human rights, caused by the organisation’s activities and investments, its products and/or services or its value chain, in the short, medium and long term. The materiality of impacts is measured by considering their severity as well as the likelihood of occurrence.
The Group’s materiality analysis process was coordinated by the CSR Manager (Finance Department) with the support of the Group’s Consolidated Reporting and Sustainability Function. This process, consistent with GRI 3 Material topics 2021, was carried out in the following steps:
- Understanding and assessing the context (business, environment, social/political) in which the Group operates, as well as identifying relevant stakeholders;
- Based on this context, identification of the positive and negative, actual and potential impacts that the Group’s activities could generate on the economy, the environment and people, including those on their human rights, in the context of the organisation’s activities and business relations;
- Evaluation of impacts through the involvement of top management and a category of stakeholders (suppliers);
- Prioritisation of impacts and aggregation into material themes.
The Group’s top managers were asked to assess, through the completion of a questionnaire, the severity and likelihood of occurrence of the previously identified positive and negative impacts that the Group’s business could cause.
The result of this analysis was compared with the opinion given by some suppliers. After the assessments were collected, impacts were prioritised and those found to be material were aggregated into material themes.
The issues that were found to be material as a result of the materiality analysis are summarized in the table shown in the pdf extract from the NFS Materiality analysis topics.
Compared to last year, there were no significant changes in the topics identified; as in previous years, only the topic of biodiversity did not cross the threshold of materiality. Piaggio’s production sites are not located in protected areas or areas with high levels of biodiversity. The sole exception is the Scorzè site, which although located in an industrial zone, conveys its waste water into the drainage basin of the Venetian Lagoon. As such, the production site is subject to restrictions imposed by specific laws. The 2022 materiality analysis was reviewed by the Audit, Risk and Sustainability Committee in its meeting of 20 February 2023 and approved by the Board of Directors of Piaggio & C. S.p.A. on 24 February 2023.