Materiality analysis

A materiality assessment was conducted in 2019. The identification of topics was based on our ongoing stakeholder engagement processes with internal as well as external stakeholders. Internal workshops were conducted to assess the impact on each topic. The significance of Billerud’s economic, environmental and social impacts were weighted, and the substantive influence on the topic and decisions of stakeholders were considered. Thus, our materiality assessment has two perspectives into consideration: external impact on the environment and society as well as the impact on enterprise value. Validation of the materiality assessment was performed through Billerud’s Sustainability Council, consisted of Group Executive members led by Director of Sustainability. The materiality analysis is part of the limited assurance engagement of Billerud’s Sustainability Report. Every year, we do an overview and update the material topics if necessary.

We have continuous formal as well as informal dialogue with our stakeholders, both internal and external. The purpose of our stakeholder engagement is to listen to, collaborate with, or inform our stakeholders on relevant sustainability topics. The dialogue helps us to understand what is expected from us and how we can meet the requirements and needs of our stakeholders. Thus, the information in the stakeholder dialogue is analyzed and the input from the stakeholders is an important part of the materiality analysis. We cluster the stakeholders into relevant stakeholder groups and assign the groups a weighting based on our own assessment of importance of the group and their requirements. The input from each stakeholder group is consolidated into a scoring of each topic from 1-4. The result is, as mentioned above, taken into consideration together with the significance of Billerud's economic, social and environmental impact. A list of our key stakeholders and information on dialogues and questions raised are presented in our sustainability report.

The materiality analysis has resulted in a prioritization, shown below:

In preparation for the upcoming EU regulation Corporate Sustainability Reporting Directive (CSRD), Billerud conducted a five-step Double Materiality Assessment (DMA) to identify and score impacts, risks and opportunities (IROs) as a basis for materiality decisions on sustainability matters, as outlined by European Sustainability Reporting Standard (ESRS) 2, during 2023. This process has been based on a combination of review of internal and external documents and interviews with internal stakeholders representing affected stakeholders and users of sustainability statements, as well as a validation session, in the form of a workshop. The final results of the DMA will be presented in the Annual and Sustainability Report 2024.