Material topics for Elkem
The materiality assessment highlights Elkem´s priority issues on sustainability and ESG based, in alignment with the GRI framework.
Corporate sustainable responsibility includes a wide range of issues for a global and complex group like Elkem. Over the past years, Elkem has expanded its operations from solely being a producer of silicon and ferrosilicon. Today Elkem’s value chain includes silicones, thus creating a vertically integrated value chain covering all steps of the process from quartz mining to a wide range of advanced silicon and silicone-based speciality products.
In 2020, Elkem conducted a comprehensive analysis with external and internal stakeholders that are either impacted by the company’s operations, or whom, in different ways, have an impact on the company. The stakeholder engagement process and materiality assessment were done in alignment with GRI framework and was conducted by third-party advisors to ensure objectivity during the analyses. The results from the stakeholder dialogue have given Elkem valuable insight into which economic, social, governance and environmental topics that we impact through our operations and should be prioritised based on stakeholder importance.
During the fall of 2021, GRI Standards updated their international standards and recommendations for pursuing materiality analyses. Elkem implemented the updated GRI Standards based on the materiality assessment from 2020 and the process for identifying ESG risks in the value chain in 2021.
The steps to further identify material topics followed the recommended steps provided by GRI:
- Understand Elkem’s sustainability contexts
- Identify actual and potential impacts
- Assess the significance of the impacts
- Prioritise the most significant impacts.
Elkem considers the sustainability through specifically the business model, sector and the nature of its impacts, geographic areas, and cultural and legal operating context. Actual and potential negative impacts were identified during the risk assessment based on Elkem’s value chain from raw materials extraction, production and processes to the market and end products in each division. During the fall of 2021, Elkem assessed and prioritised the positive and negative impacts in the value chain, along with evaluating human rights due diligence. The assessment was conducted by a third-party interviewing chosen key internal personnel who are experts in their own division’s value chain focusing on scale, scope, and likelihood.
Based on Elkem’s defined focus and impact on human rights, product governance, including chemical stewardship and supplying the green transition, the reviewed material topics for 2021 evolved from 2020. The material topics and their impacts also represent financial risks and opportunities. Moving forward in 2022, updating and reviewing the materiality assessment will be an extension of the ongoing risk management process. The dynamic material topics and their impact will be continuously evaluated by the ESG steering committee and approved by the board of Elkem annually.
Elkem reports in accordance with the Global Reporting Initiative (GRI) Standards (Core option) and PWC has undertakten a limited assurance on the ESG report 2021 alignment to the GRI Standards. The assurance can be find at the end of the annual report.
Elkem's key stakeholders