Materiality assessment

In mid-2023, we conducted our first Double Materiality Assessment (DMA) with the support of an external consultancy. During the process, we gathered insights via surveys, desktop research, and direct interviews with different stakeholders, identified as most relevant considering our business operations. These included employees, customers, peers, suppliers, business partners, management, and shareholders.

The extensive topic list was informed by sustainability standards and frameworks such as the GRI Standards, the Sustainability Accounting Standards Board (SASB) Standards, and the Sustainable Development Goals (SDGs). The final selection of topics was assessed by SMG’s Sustainability Team and Sustainability SteerCo, who participated in two dedicated workshops to review potential and actual impacts, considering business materiality, opportunities, risks, and real business cases.

As a result, an initial matrix was developed, highlighting key impacts and risks. The output was refined through interviews with the ELT. Lastly, a final validation was carried out by our ELT and, in April 2024, our BoD approved the first DMA.

In 2024, the Sustainability Team reassessed the DMA through desk research and peer benchmarking. The goal was to ensure that the materiality topics remained valid and to consider any potential new material topics arising, from regulatory changes or other developments. We conducted an in-depth analysis of Artificial Intelligence (AI), recognising its potential for significant impact. Structured interviews were held with the leaders at SMG responsible for security and AI, examining its implications for our business model and decarbonisation target, concluding that AI is not a material topic for 2024 from a sustainability perspective.