ESG Report 2022 June 2022 - Page 18

2.1 Materiality matrix
Our approach to sustainability has been guided by stakeholder input over nearly two decades . However , more than ever , it is imperative for us to gain a meaningful insight into changing customer and internal stakeholder views on what is “ material ” to them .
We sought an holistic understanding of key ESG topics though a combination of internal and external stakeholder engagement .
This research identified the evolution of our ESG strategy as a key priority and helped us create our corporate identity and pillars . Further analysis coupled with examination of customer requirements delivered a broad understanding of the relative importance of the key topics across our key stakeholders . Scottish Leather Group aims to review the prioritisation of these topics and repeat an annual assessment so that we may respond to the evolving landscape .
Identifying relevant sustainability topics We commissioned a review of our Sustainability Report format to bring in wider market perspective and experience and examples of best practice impact reporting . We also analysed global sustainability frameworks Sustainability Accounting Standards Boards , the Global Reporting Initiative the UN Global Compact and United Nations Sustainable Development Goals alongside reviewing the topics considered by our customers in our ongoing communications .
Stakeholder engagement We conducted independent qualitative research with both internal colleagues and customers . Our research partners held in depth interviews with twentytwo leaders from within our own business and representatives from a cross section of functions with twentysix customers across all the sectors in which we operate . We also partnered with a trends intelligence agency to help us understand the end consumer expectations for sustainability .
We intend to repeat this exercise periodically .
Material Topics
1 Transparency & traceability of raw materials Ability to track and trace from farm to finished product .
2 Ethical sourcing & animal welfare All raw materials are by products of the food industry and animals are raised to a high standard of animal welfare , as measured by the Animal Protection Index .
3 Health & safety / Employee wellbeing Providing a secure and safe environment for employees to thrive .
4 Responsible supplier relationships Ensuring suppliers meet the same criteria our customers expect from ourselves .
5 Customer experience Excellence at every touchpoint throughout our delivery .
6 Product Quality Aspiring for brilliance in performance , longevity , design , and innovation .
7 Talent & Lifelong Learning Actively encouraging employee progression and promoting continual learning .
8 Sustainable Innovations Developing new technologies , designs and finishes that improve longevity and minimise impact .
9 Circularity of Product Design Delivering high performance material that can be repurposed at end-of-life .
10 Low Carbon Product Lowering the carbon footprint of our operations and products .
11 Resource Stewardship – Ensuring and optimising use of natural resources .
12 Climate Change Contributing to the overarching aim to reduce impact .
13 Craftsmanship Continually developing the care and skill required to produce our lowest carbon leather .
14 Diversity & Inclusion Recognising , respecting and celebrating each other ' s differences and creating an environment where everyone feels welcome and valued .
15 Community Investment Supporting the local community financially and practically .
18 Scottish Leather Group