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Materiality Assessment

Added on 23-06-2011

Company

Coca Cola Hellenic

Network

CSR Europe

Year

2011

Business challenge

Connecting with the internal and external stakeholders is necessary to identify and appropriately manage the economic, social and environmental issues that can potentially affect the company’s ability to create value over time.

Description

The Coca Cola Hellenic sustainability team conducted a materiality assessment process developed in line with the Global Reporting Initiative G4 Guidelines, and represented issues in a materiality matrix using three different dimensions to determine the importance of issues.

First the company identified the issues material to its strategy and operations: water, energy and climate, packaging, workplace, consumer health, suppliers, corporate governance.

In order to create the matrix with two distinct axes (1) relevance to stakeholders and 2) relevance to company), Coca-Cola HBC used different methodologies to define the scores for each issue identified and plot these on the map.

First dimension, relevance to stakeholders was defined according to two primary factors:

  1. Media Coverage
  2. Stakeholder Panel feedback

Additional sources were used as common sense checks and balances:

  • an extensive media monitoring,
  • stakeholder meetings,
  • opinion leader reputation research,
  • syndicated sustainability expert and consumer surveys,
  • market research,
  • an internal engagement survey
  • and the corporate risk map

For each issue identified the average score of the stakeholder panel was calculated (0-3 depending on the dimension of the actual/perceived impact of stakeholders on the company) and multiplied by the media coverage score (1-4 points) to give the score of importance to Stakeholders used to draw the graph.

Second dimension, relevance to the company was dependent on the extent of impact or potential impact on company business:

  • The extent of the impact can be local, regional or global and it is scored from 1 to 3 (single bottling site/national/multinational).
  • Stakeholders were ranked to reflect their varying levels of influence on Coca Cola Hellenic’s business

These two scores (the impact extent and the stakeholder influence level) are multiplied to give the score of importance to the company.

Third dimension, importance of impact

In order to give a sense of the significance of the impact on society or the environment, the issues are plotted with circles of increasing size:

  • The environmental impacts were evaluated in number of eco-points (as per eco-indicator 99 method).
  • The social impacts were qualitatively evaluated in terms of social costs resulting from the company’s activities: 1= small social or environmental impact, 2= moderate social or environmental impact, 3= high social or environmental impact (in the absence of a recognised quantifiable methodology)

Impact

Coca-Cola Hellenic focuses its sustainability strategy and reporting on the results of the materiality process.

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