The increase in energy insecurity, the current geopolitical tensions, and the worsening impacts of climate change call for business resilience and proactive commitment to a more sustainable future.
Material issues
RHI Magnesita conducts a materiality assessment as part of their sustainability reporting process. This help to identify issues that are important to the company’s long-term value creation and the demands of stakeholders.
In 2022, RHI Magnesita launched an online survey to collect the perspectives of different stakeholders in various regions, including its workforce. This materiality analysis included the double materiality concept, which considers the impact of topics on the value of the company. Three different levels of impact were considered (low, medium, high) based on RHI Magnesita’s risk management approach that considers four dimensions (compliance, strategy, financial, and operation), as well as the likelihood of the risk becoming true.
Health and Safety, Recycling, Climate Change and Decarbonisation, Other Emissions, Energy Efficiency, and Diversity were re-confirmed as essential topics. RHI Magnesita’s actions regarding these topics are reflected in our 2025 Targets.
Governance
RHI Magnesita has a dedicated Corporate Sustainability Committee that monitors performance related to climate change, environment, health and safety, stakeholder relations, and other ESG risks. Executive and functional leaders are accountable for delivering sustainability priorities, and the Global Sustainability Team is responsible for external reporting, assessing sustainability-related risks, and liaising with the Board and key external stakeholders. They also provide regular updates to the Corporate Sustainability Committee. Additionally, a Sustainability Forum has been established to bring together various executives and experts with responsibility for improving sustainability. In 2022, a dedicated team was formed to develop a global sustainable procurement strategy and provide guidance to the Group’s regional operations.
Standards, frameworks, and reporting
RHI Magnesita is committed to leading sustainability standards and frameworks. In the period from 01.01. – 31.12.2022, we reported in accordance with GRI standards. As a supporter of the taskforce on Climate-Related Financial Disclosures (TCFD), we identified and quantified our climate-related risks and opportunities. We submitted annual climate reports to CDP in 2022 and scored an A- rating. In accordance with the new EU taxonomy, we report the proportion of our revenue, operating expenditure and capital expenditure for FY 2022 that are taxonomy-non eligible, eligible, and aligned. Our integrated management system is compliant with ISO 14001 (environmental management), ISO 50001 (energy management), ISO 45001 (occupational health and safety management) and ISO 9001 (quality management). We also report our gender diversity progress to the FTSE Women Leader Review each year.
As a signatory of the United Nations Global Compact (UNGC) since 2018, we report annually on our progress, engagement, and contribution to the UN Sustainable Development Goals (SDGs) that are most relevant to our business operations.
Our non-financial report covers all activities, sites, and industrial assets operated or contractually managed by RHI Magnesita N.V. or one of its subsidiaries and acts as our Communication on Progress.
RHI Magnesita commissioned Deloitte Audit Wirtschaftsprüfungs GmbH for an independent third-party limited assurance engagement on the non-financial report for the year ending 31 December 2022, according to Dutch transposition of the NFI-Decree, the Taxonomy Regulation (EU 2020/852) and GRI Standards.
Read more: Deloitte´s assurance report and TCFD report
ESG ratings
RHI Magnesita’s commitment to Sustainability is reflected in its 2022 ESG ratings: We are proud to have reached the Leadership level of the CDP scoring receiving an “A-” rating. This is higher than the European regional average of B, and higher than the global average of C. We additionally secured an “AA” score from MSCI and a “Gold” score for Ecovadis.
