Topics of material importance

GF’s activities in 2020 focused on the measures defined in the Strategy 2020 and the Sustainability Targets 2020. In 2019, GF reevaluated the importance of topics identified as relevant for its operations in its previous materiality assessment. It did this because its five-year strategy cycle was drawing to a close and as part of the preparations for its next strategy cycle (2021-2025). The reevaluation resulted in a new materiality matrix, which the Executive Committee approved in early 2020. The revised overview of GF’s main material topics informed discussions at the Corporation throughout 2020 and defined the reference points for the Corporation’s Sustainability Framework for the next five years.

The reevaluation had several stages. GF conducted around 30 interviews with key internal and external stakeholders to help identify the material topics. The group of interviewees was diverse in terms of professional experience, origin, country of residence, age, and gender. GF also obtained input from key customers, suppliers, investors, its Executive Management, representatives from senior management, and employees from different regions.

In close collaboration with the divisional sustainability teams, the Corporate Sustainability Team then collated and summarized the feedback from the interviews. It also conducted a qualitative impact analysis along GF’s value chain to rank the topics’ relevance for sustainable development. These findings flowed into the resulting materiality matrix. The matrix was then again reviewed and fine-tuned with support from a third-party sustainability communications agency.

Details of each category in the matrix and the reasoning behind their position on the graph are described below (see graphic and tables below).

The review identified a number of topics in the previous materiality matrix (innovation, customer satisfaction, compliance, financial stability, and human rights) that are crucial for GF’s overall ability to operate and its business success. These topics were subsumed under GF’s existing material topics and re-designated as “aspects.” They are described and explained in the table below.

Hover with your mouse over the individual points within the materiality matrix to get more detail:

graphic

Areas of high materiality

Tabelle anzeigen Tabelle ausblenden
Show table Hide table

Topic

 

Related aspects

Explanation for high materiality

 

 

 

 

Sustainable products and solutions

-

Sustainable products

GF’s product portfolio is its main direct impact on sustainable development. The design phase determines a product’s environmental and social impacts during its life cycle. GF therefore considers it crucial to ensure that the entire life cycle is considered during this phase. The notion of a circular economy is integrated into product development at a very early stage. Different materials and components are analyzed to decide whether they are reusable or recyclable. It is essential for GF to have a precise understanding of customers’ needs and to provide them with the right solution. GF’s three divisions can only have positive impact on sustainability by working closely with their customers. Product and consumer safety is integral to product development and is essential for preventing individuals from being harmed by hazardous substances or materials, particularly in the disassembly phase. It is vital for GF to comply with applicable laws (such as REACH and RoHS) and ensure that all necessary declarations are in place, visible, and understandable for its customers.

-

Circular economy in product R&D

-

Innovation

-

Customer relationship management

-

Product and customer safety

Natural resources and materials

-

Reuse of materials at GF's operations

Valuable natural resources and other inputs are essential for the manufacture of GF's products. Manufacture results in products and also waste. As part of GF’s commitment to being a responsible industrial company, it is therefore important for GF to continuously work to ensure that this waste is minimized and that circular approaches are implemented by each division wherever feasible. This applies to GF’s use of resources and materials at its operations, its treatment of waste, its efforts to reuse or recycle itself or to work with outside partners to find possible reuse and recycling options. Biodiversity provides the existential basis for human beings to live on this planet. GF’s facilities are sited in industrial zones that have the infrastructure needed by its operations. Their impact on biodiversity and land use is relatively small. GF adopts the precautionary principle. It therefore places a high priority on environmental management and ensures its compliance with all applicable laws and regulations.

-

Waste reduction

-

Biodiversity and land use

Climate and energy

-

GHG emissions along the value chain

Energy consumption is one of the major sources of GHG emissions. Increasing concentrations of greenhouse gases in the atmosphere directly contribute to global warming. Climate change is many external stakeholders and regulators’ biggest energy-related concern, and the international community is broadly committed to tackling its challenges. Being a global industrial company makes it essential for GF to understand, manage, and reduce the GHG emissions attributable to its operations, its supply chain, and customers’ use of its products. Non-GHG emissions from GF’s production processes are important for nearby communities and the environment. However, GF facilities do not release significant quantities. Consequently, GF’s impact on non-GHG emissions is small.

-

Energy use in GF's operations

-

Non-GHG emissions (such as SOx, NOx, PM, and VOCs) in GF’s operations

Responsible supply chain

-

Supply chain management (social and environmental impacts)

GF’s supply chain could potentially be a source of adverse social and environmental impacts. GF therefore has a responsibility to systematically manage its suppliers in order to minimize these risks. Respect for human rights and the prevention of human rights violations are integral to responsible supply chain management. As a basis for long-term partnerships with its suppliers, GF expects them to do their part to ensure the protection of human rights.

-

Integration of social and environmental topics into procurement processes

-

Human rights

Safety and well-being at work

-

Occupational health and safety

Occupational safety is of paramount importance to GF and many of its stakeholders. Caring about the people who work for GF (or on its premises) is integral to GF’s corporate culture. GF is therefore committed to a robust safety culture and, more broadly, to providing a work environment that promotes its employees’ overall well-being.

-

Ergonomic work environments

-

Mental health and well-being

Water footprint

-

Water consumption

Although GF’s operations are not water-intensive, water is used along its entire value chain. Water use is particularly high in some upstream processes of GF Piping Systems. Sustainable water management (access to clean water and leak-free water transport) are urgent societal issues that GF takes very seriously. GF’s operations mainly use water in closed-loop cooling cycles. Quality is always controlled before water is returned to source.

-

Wastewater

-

Reducing water pollution

Fair and attractive employer

-

Diversity, equal opportunity, and inclusion

A fair and attractive employer treats all employees equally, motivates them, enables them to achieve a healthy work-life balance, supports freedom of association, and provides training and development opportunities. A respectful and diverse work environment in which all employees feel included and affirmed regardless of their gender, nationality, ethnic origin, age, identity, sexual orientation or identity is essential: retaining diverse and skilled talent supports future business growth. Demographic change, digitization and automation require GF and its employees to acquire new skills. It is therefore a priority for GF to offer employees a wide range of training and development opportunities. As a matter of course, GF ensures that its employees worldwide enjoy internationally recognized human rights.

-

Learning and development

-

Talent retention, attraction, and engagement

-

Employee work-life balance, flexible work arrangements

-

Working time and wages

-

Freedom of association

Business ethics and compliance

-

Corporate governance

Good corporate governance enables GF to address the interests of all internal and external stakeholders. It ensures objective decision-making, clear checks and balances, and legal and regulatory compliance. Risk and opportunity management is crucial for GF and its outside stakeholders to maintain business continuity in a rapidly changing environment and to systematically identify and manage, emerging and potentially disruptive developments. Although GF does not collect sensitive customer data, it does store its employees’ personal data. GF handles all such data in full compliance with the GDPR and other applicable data protection laws in the jurisdictions in which it operates. Amid ongoing digitization, data availability, integrity, and security are crucial for GF’s IT infrastructure and business systems.

-

Business ethics and compliance

-

Risk and opportunity management

-

Business continuity

-

Data privacy and safety

-

Cyber security

Corporate citizenship

-

Community engagement

GF is committed to having a positive impact on the communities where it operates. GF is at once a global and a local citizen: maintaining good relations with its neighbors and partnering with them to achieve common goals are of great importance to the Corporation. In general, GF’s production sites pose no material risks for, or have adverse effects on, nearby communities. Their direct impact is therefore minimal.

-

Local community impact

https://sustainability-report.georgfischer.com/20/en/wp-json/public/posts/