Materiality Analysis Process
Brembo is aware of how important it is to identify the
topics that are material to its stakeholders and to properly choose the contents of this Disclosure of Non-Financial Information to provide an understanding of the activities carried out by the Group, its performance, its results and the impact produced by them, also considering the principles of accuracy, balance, clarity, comparability, completeness, timeliness, verifiability and sustainability context, promoted by the
GRI Standards. For this reason, the Group carries out an annual materiality analysis process in order to identify the areas in which its activities may have the greatest impact on natural ecosystems, as well as on the wellbeing of the community, employees and all of its stakeholders.
Driven by a desire to act as a catalyst of change, the Group has always striven for sustainability, showing constant interest in and commitment to carrying out initiatives and activities relating to these themes, including in the area of reporting. This is why in 2022 the materiality analysis was conducted in accordance with the new GRI Universal Standard 2021, introducing the concept of "impact materiality".
Brembo involved its Board of Directors, Board of Statutory Auditors, CSR Committee and external stakeholders in the process of assessing the matters representing positive and negative current and potential impacts that may be generated both in the context of its activities and as a consequence of its relationships along the value chain for people, the environment and economy, including human rights.
The scale of assessment thus took account of two criteria: the severity of the impact generated and the probability of occurrence. The model was constructed in accordance with the guidelines of the GRI Universal Standards 2021 and took account of Brembo's Risk Management method, in order to ensure that the two processes – those of the
Risk Assessment and the
Materiality Assessment – were aligned.
In 2022, in advance of the requirements imposed by the new European Directive 2022/2464 (the Corporate Sustainability Reporting Directive), Brembo began the double materiality process, also integrating an "outside-in" perspective (Financial Materiality) into its "inside-out" impact assessment process (Impact Materiality) according to the GRI Universal Standards 2021. Whereas the "inside-out" approach identifies the impacts generated by the organisation on the outside world, the "outside-in" perspective looks at the risks and opportunities that may influence the Company's creation of value, strategy, performance and positioning in the short, medium or long term.
It bears clarifying that the assessment of the "outside-in" perspective (Financial Materiality) was conducted on the basis of the advance draft of the
European Sustainability Reporting Standards (ESRSs) made available by the EFRAG on 15 November 2022, i.e. the reporting standard that is to be used by companies subject to the
Corporate Sustainability Reporting Directive. Therefore, this activity is to be considered as on a totally voluntary basis and not subject to audit.
After obtaining the results, impact assessment was prioritised so as to identify the most significant impacts for the Group, and thus the most material impacts. In turn, the impacts were regrouped in the 15 topics previously identified.
