We listen to our stakeholders with selected dialogue tools, to assess what is materially important to them. After identifying critical Environmental, Social and Governance issues (ESG), we rank them in order of importance, to develop our approach and strategies for each one of them. The Materiality Matrix is a graphic model of this process, showing which topics stakeholders say are of material importance.
We review our materiality analysis on a yearly basis. Also this year, the top management and Board have demonstrated their strong engagement during several meetings, as well as the Corporate Governance, Nomination and Sustainability Committee (CGN&S) by overviewing ESG topics and our sustainability strategy. The matrix has in fact become a strategic tool to follow and monitor the implementation of targets, and to steer future decisions also in the reshaping of the new ESG strategy.
Dialogue tools with stakeholders
Listening to stakeholders has always been fundamental to UniCredit's business: the Group regularly invests in mutual feedback activities that include all types of stakeholders, systematically collecting and evaluating observations, conducting research activities and responding to stakeholders' opinions and concerns.
We believe that understanding who your business impacts and who impacts your business is the key to long-term value creation. We also believe that knowing which issues are important to our stakeholders is crucial for managing risks and opportunities, and is therefore essential when it comes to making decisions and developing strategies.
We have periodically carried out materiality analyses since 2010, listening to our stakeholders. This thorough approach identifies critical economic, environmental and social aspects which could have a significant impact on the company's business performance and, therefore, on long-term value creation.
The matrix below represents the upper-right quadrant of the overall matrix and results from the ranking of a number of topics based on their relevance (medium or high) expressed by our stakeholders during an intense dialogue process, as well as UniCredit's approach to the same topics, measured in terms of managerial focus and investments (advanced or highly advanced).