Materiality Analysis
NIBE performed a double materiality assessment in accordance with CSRD for the first time in 2024. The assessment will be reviewed annually and more precise data will gradually be collected and documented. The entire organization and our value chain was included in the double materiality assessment. Knowledge obtained from stakeholder dialogs was used to describe impacts and risks. In addition, we have used information from risk management tools that describe the risks of negative sustainability impact from business relationships. We intend to reconcile our outcomes and assumptions from the materiality assessment with our key stakeholders on an ongoing basis.
Gross list of potentially material areas
The materiality of sustainability matters was assessed in respect of the sub-sub-topics described in ESRS 1. The sub-sub-topics we immediately assessed as being non-material were excluded from the materiality assessment without further analysis to enable us to focus in greater depth on more relevant areas of sustainability.
A description of NIBE’s impact on people and nature was provided for each sub-sub-topic based on our stakeholder dialog, data collected from the Group and impact assessments from external partners. We also used information from internal experts and specialist consultants, as well as knowledge obtained from the various networks we are members of.
For a description of the impact in the supply chain we used public data on the impact of industry sectors, knowledge obtained from dialogs with our current suppliers and analyses from analytics tools for information on the external environment and risks.
The assessment of positive impacts looked only at areas of sustainability where NIBE contributes to a more sustainable society. We do not include under positive impact areas where we are taking measures to reduce our negative impact.
Financial effects of identified material risks and opportunities
In our materiality assessment we identified three financial risks within the topics climate change and pollution and three financial opportunities within climate change that all lead to increased net revenue due to a rise in sales volume of existing products and a broader product portfolio.
Resilience of strategy and business model
Every year, we carry out a risk assessment of our business risks in accordance with NIBE Internal Control Standard (NICS), which covers all NIBE companies. As part of this process we also analyze our strategy and business model in respect of our resilience and capacity to address material impacts, risks and opportunities in relation to climate change and the areas within sustainability assessed as material. This was carried out in accordance with the time horizons defined in ESRS 1 and in line with TCFD recommendations.
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