Double Materiality Assessment

Belimo's 2024 double materiality assessment (DMA) identified 13 key sustainability topics through a comprehensive evaluation of financial risks and opportunities, environmental and social impacts. This assessment aligns with the European Sustainability Reporting Standards (ESRS) and the Corporate Sustainability Reporting Directive (CSRD). Its results form the basis of Belimo's sustainability strategy, targets and metrics.

Background

To meet the requirements of the European Union's CSRD and ESRS, Belimo revised its materiality assessment methodology in 2024. The double materiality assessment (DMA) conducted for the first time helped to define the sustainability topics that are material for Belimo’s business and its stakeholders.

This approach combines an outside-in with an inside-out view. While financial materiality considers risks and opportunities that may affect the Company financially (outside-in), impact materiality focuses on how its activities affect the environment and society (inside-out). The assessment covers Belimo's full operations and value chain. Stakeholder engagement was integral to the process, ensuring an inclusive balanced approach.

Further information on the methodology can be taken from the Sustainability Notes.

Outcome

List of Topics

As the result of the DMA, the following 13 sustainability topics were found to be material for Belimo:

Double Materiality Assessment Matrix

Stakeholder Perspective

Customers identified energy efficiency, climate change, and supply chain-related issues as the most relevant topics, while investors prioritized corporate governance and business ethics. Suppliers emphasized the need to address climate change and data privacy, academia highlighted digitalization, and associations and public organizations stressed the importance of energy efficiency and climate actions to reduce greenhouse gas (GHG) emissions, thereby supporting global climate targets and improving air quality.

Contribution to Energy Efficiency, Digitalization and Innovation & Solution Leadership were assessed as the material topics with the highest financial opportunity for Belimo, while Data Privacy & Cybersecurity and Product Quality, Safety & Compliance were associated with the highest financial risk.

A high positive impact on society and/or the environment was linked to the topics of Contribution to Energy Efficiency and Innovation & Solution Leadership. Meanwhile, topics such as Environmental Footprint of Supply Chain & Traceability and Climate Change were identified as having the highest potential for negative impacts.

ESRS Topical Standards

The following ESRS topical standards are deemed to be applicable to Belimo: