A materiality assessment helps organizations understand what topics matter most to its business and stakeholders. Every three to four years, Barco conducts a comprehensive materiality assessment to make sure it reflects the latest developments in its business and external environment and reflects these in the strategy, risk and business process of the company.
A topic is material to Barco if it meets two conditions:
- it impacts Barco’s business significantly in terms of growth, cost or risk (X-axis of the materiality matrix);
- it is important to Barco’s stakeholders – customers, investors, (non-) governmental organizations, suppliers and employees (Y-axis of the matrix).
In determining if a topic is material, we consider Barco’s impacts across the value chain.
2020 MATERIALITY ASSESSMENT: A 3-STEP APPROACH
In 2020, we conducted a new, extensive materiality assessment, based upon and aligned with our integrated reporting approach, considering the six capitals. Compared to the previous materiality assessment, a number of topic names have changed, or topics have been added to cover all capitals.
Composing a longlist of potential material topics through desk research covering the UN Sustainable Development Goals, reporting standards (GRI, SASB), ESG ratings, sector federations and Barco’s own risk assessment.
Reducing the longlist to a shortlist by gathering direct feedback through employee surveys, external stakeholder surveys and interviews, including a survey distributed among the top 100 Barco leaders.
Review and validation of the results by the Executive Sustainability Steering Committee and the Core Leadership Team.
2020 MATERIALITY MATRIX
Barco’s materiality matrix has three categories – low, medium and high material topics. The illustration reflects our medium and high material topics.
- Customer engagement
- Product quality safety & security
- Information security & data protection
- Business ethics
- Corporate governance
- Responsible supply chain management
- Community engagement
- Innovation management
- Financial resilience
- Sustained profitable growth
- Market reach
- Employee engagement
- Employee health, safety & well-being
- Labor practices & human rights
- Learning & development
- Diversity & inclusion
- Product stewardship
- Climate change & energy
- Waste management
- Long-term asset performance
DESCRIPTION OF THE MEDIUM AND HIGH MATERIAL TOPICS
Financial resilience (high)
Solvency, long-term financial stability, the capacity to withstand market-related or financial headwinds.
Market reach (medium)
The company’s ability to reach its customers across the globe through channels, indirect or direct sales and services. This topic also covers the company’s competitive position in its different markets.
Sustained profitable growth (high)
The company’s ability to deliver structural growth in combination with profitability ensures healthy cash flow generation.
Long-term asset performance (medium)
Performance of fixed assets such as the company’s property, buildings, equipment and infrastructure, but can also include other assets such as long-term investments or patents.
Innovation management (high)
Management focus, effectiveness and efficiency of Barco’s innovation process (including but not limited to R&D and product management) to ensure outcome-based solutions and safeguard intellectual property (IP).
The company’s brand is an intangible asset distinguishing its solutions from others. It builds on a combination of factors such as name, term, design, symbol or any other features, and determines how the organization is perceived by those who experience it.
Climate change and energy (high)
Addressing risks and opportunities related to climate change. It includes but is not limited to reduction of greenhouse gas emissions, implementing energy efficiency measures and working towards a low carbon footprint.
Product stewardship (high)
Incorporating criteria into the design, development and life cycle management of products, services and business models to reduce the environmental footprint. It includes energy efficiency, material use intensity, management of hazardous substances, packaging and end-of life optimization (including circularity).
Waste management (medium)
Reducing, appropriately disposing of and optimizing opportunities for recovery, recycling and re-use of solid waste in operations. It does not include waste from end-of-life of products.
Diversity and inclusion (medium)
Diversity is representation of gender and minority groups at all levels of the organization. An inclusive workplace is one where individuals from different backgrounds are culturally and socially accepted and equally treated.
Employee engagement (high)
The level of enthusiasm and dedication an employee feels toward their job, the organization and its goals, and the effect it has on well-being and productivity.
Employee health, safety and well-being (medium)
Occupational health and safety and promotion of well-being of Barco’s employees.
Labor practices and human rights (medium)
Promoting fair labor practices, decent working conditions and respect for human rights. It includes but is not limited to prohibiting child, forced or bonded labor, ensuring fair wages and overtime pay, minimum wages, provision of benefits and freedom of association.
Learning and development (medium)
Training and upgrading the capabilities, skills and competencies of employees based on the strategic needs of the organization, employee performance and career development reviews.
Business ethics (high)
Promoting high ethical standards and combating corruption in business interactions, including in joint ventures and with business partners, customers, suppliers, and distributors.
Community engagement (medium)
Supporting employee volunteering and charitable giving, and providing corporate financial and in-kind contributions for communities in which the company has a presence or impact.
Corporate governance (medium)
Conducting operations in accordance with internationally accepted principles of good governance and best practice. These include but are not limited to the roles and responsibilities, transparent reporting and remuneration of the supervisory and managing boards, board independence and the positions and rights of shareholders.
Customer engagement (high)
Meeting or surpassing customer expectations, building successful relationships with customers, encouraging co-creation.
Information security and data protection (high)
Protecting the collection, analysis, use, storage, transfer, and sharing of information from unwanted parties, unauthorized access, and security threats, including cyberattacks. Collecting, using, storing, transferring and sharing information in ways that uphold the right to privacy and personal data protection.
Product quality, safety and security (high)
Offering solutions and services that are healthy, safe and secure to use. It includes but is not limited to liability, management of recalls, product testing to eliminate risk of injury or damage and integrating security controls.
Responsible supply chain management (medium)
Management of environmental, social and governance risks in the supply chain. It includes but is not limited to labor practices and human rights, business ethics, energy and climate change and waste management. It also includes the management of supply chain disruptions and conflict minerals.