Section ECONOMY
TOPIC

POLYECO SA
Shaping the Sustainable Development Strategy through Double Materiality Assessment

The objective of implementing the Double Materiality Assessment (DMA) was to strategically identify and evaluate the material sustainability topics that shape POLYECO’s environmental and social impacts, as well as its corporate governance framework, in relation to its stakeholders.

Through the Double Materiality Assessment, the company aligned its business strategy with its ESG priorities by integrating both the impact perspective (Impact Materiality) and the financial perspective (Financial Materiality) into its decision-making process.

Based on the European Sustainability Reporting Standards (ESRS) and the GRI Standards 2021, the assessment served as a strategic transformation tool, enabling the identification of key sustainability-related risks and opportunities that influence the Company's ability to create long-term sustainable value.

The initiative was carried out as part of POLYECO’s 2023–2024 Sustainability Report and represents the evolution of the Company's initial materiality assessment conducted in 2023. It strengthens the continuous review and refinement of material topics in response to changing business, environmental, and stakeholder expectations.

Overall, the process acts as a catalyst for strategic transformation by embedding ESG considerations into corporate decision-making and supporting the creation of long-term sustainable value.

 

The Double Materiality Assessment (DMA) was addressed to the full range of the Company's stakeholders and social partners. The stakeholder mapping had already been conducted as part of the initial materiality assessment carried out in 2023.

To identify the stakeholder group to which each survey participant belonged, the questionnaire included an initial classification question requiring respondents to indicate whether they represented an internal or external stakeholder and to select one of the following categories:

  • Company employees
  • Customer – Waste producers
  • Customer – Waste recipients
  • Suppliers
  • Business partners / Subcontractors
  • Representatives of the State, Regulatory Authorities, Public Sector, or Local Government
  • Representatives of a professional association, industry association, chamber of commerce, or other business organization
  • Representatives of a local community group

 

 

The Double Materiality Assessment was conducted over a two-month period.

The Double Materiality Assessment was designed to support the transition from a traditional materiality assessment to a comprehensive Double Materiality approach, capable of capturing both POLYECO's impacts on the environment and society and the ways in which sustainability-related developments influence the Company's business performance and long-term value creation.

The assessment was implemented through a structured and participatory evaluation process, fully aligned with the requirements of the European Sustainability Reporting Standards (ESRS) and the broader European sustainability framework, including the Corporate Sustainability Reporting Directive (CSRD), the EU Taxonomy Regulation, as well as internationally recognized frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD), the Taskforce on Nature-related Financial Disclosures (TNFD), and the Corporate Sustainability Due Diligence Directive (CSDDD). This methodology ensured consistency, transparency, and methodological robustness across the full spectrum of ESG topics.

Each participant was asked to evaluate the ESRS sustainability sub-topics through four distinct dimensions:

  • Impact Materiality
  • Financial Materiality
  • The Company's role in relation to each topic
  • The role of stakeholders and the value chain

This multidimensional approach ensured that each topic was assessed holistically, combining business relevance with a broader understanding of stakeholder expectations and value chain impacts.

To support the evaluation process, every topic was accompanied by explanatory guidance and illustrative examples of potential positive and negative impacts, improving the quality, consistency, and comparability of responses.

The assessment used a five-point rating scale and covered 28 material sustainability topics, requiring each participant to complete 112 individual evaluations. To determine the final materiality scores, a weighted methodology was applied, assigning greater importance to Impact Materiality (weight: 0.7) than to Financial Materiality (weight: 0.3). This approach ensures that the results more accurately reflect the Company's actual impacts on the environment and society while maintaining appropriate consideration of financial risks and opportunities.

The methodology enabled the development of a comprehensive, multidimensional, and strategically aligned materiality assessment, enhancing the transparency, credibility, and practical value of the results as a decision-support tool for ESG strategy and sustainability management.

By combining methodological rigor with stakeholder engagement, the process provides a high level of transparency and consistency, supporting the transition from a static compliance exercise to a dynamic framework for managing ESG priorities and informing strategic decision-making.

The distinguishing feature of the initiative is that the Double Materiality Assessment was approached not merely as a compliance or reporting requirement, but as a strategic management and decision-making tool, establishing a framework that systematically embeds sustainability into the core of the Company's business strategy.

 

Technical and scientific support for the project was provided by the consultancy firm "Sustainable Development Consultants". 

A total of 98 individuals completed the questionnaire. Of the respondents, 39% were employees of the Company, while the remaining 61% consisted of external stakeholders, highlighting the diversity and broad representation of the participant sample.

The Double Materiality Assessment was conducted at national level, encompassing the Company's full range of stakeholders and social partners.

A total of 98 individuals completed the questionnaire. Of the respondents, 39% were employees of the Company, while the remaining 61% consisted of external stakeholders, highlighting the diversity and broad representation of the participant sample.

The 28 material topics evaluated through the assessment were grouped into three priority levels:

Highest-Impact Material Topics

Five (5) material topics were identified as having a very high impact. These represent the Company's core strategic ESG priorities and are the areas where POLYECO is expected to place the greatest emphasis.

Critical / Foundational Topics

At the next level, ten (10) material topics were identified as critical success factors for the Company.

Emerging Topics for Monitoring

All remaining material ESG topics were classified as emerging issues to be monitored over time in relation to the Company's performance.

Based on the methodology described above, the Environmental dimension emerged as the most significant across all assessment categories, which is expected given the nature of the Company's activities. The Social dimension, particularly health and safety-related issues, followed in importance, while Governance was also identified as a material category within the overall assessment framework.

 

The Double Materiality Assessment (DMA) served as a significant strategic maturity tool for the Company, strengthening its preparedness to address evolving sustainability requirements and an increasingly dynamic regulatory landscape.

Through this process, POLYECO established a more resilient and future-ready sustainability management framework, aligned with the requirements of the European Sustainability Reporting Standards (ESRS) and the evolving expectations of the market.

The assessment also enabled the review and refinement of the objectives and findings of the Company's previous materiality assessment, further strengthening its business planning processes and supporting the continuous development of its long-term sustainability strategy.

At the same time, the participatory approach enhanced engagement with stakeholders by incorporating their views and expectations into the development of the Company's sustainability strategy. This process also strengthened transparency, accountability, and stakeholder trust.

Overall, the Double Materiality Assessment marked the Company's transition from a reporting-focused approach to a more strategic model of sustainability management, embedding sustainability into the core of its business strategy and long-term decision-making.