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Materiality assessment

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Identified material topics and boundaries

Entities included in the organization's consolidated financial statements (GRI 102 - 45)

The entities included in Wärtsilä’s Consolidated Financial Statements are listed in the Notes to the Consolidated Financial Statements 32. Subsidiaries.

All the Group companies are included in Wärtsilä’s Sustainability reporting. The report covers Wärtsilä's businesses. At the company level, the report includes the parent company and its subsidiaries as well as its manufacturing, service and sales units. The report excludes Wärtsilä's associated companies, joint ventures, and supply chain companies.

Process for defining report content and aspect boundaries (GRI 102 - 46)

Wärtsilä's Sustainability Reporting 2017 is prepared according to the GRI (Global Reporting Initiative) Standards and the Reporting Principles for Defining report content. This report has been prepared in accordance with the GRI Standards: Comprehensive option. This means that our reporting covers all the General Disclosures of the GRI Standards framework and all the sustainability topics we have identified as material in our operations.

In 2017, Wärtsilä updated the assessment of material sustainability topics. The process included an assessment of economic, environmental, and social topics from the stakeholders’ point of view and as an impact to Wärtsilä’s business. Stakeholder views were collected through a questionnaire answered by 88 key stakeholder contacts in various Wärtsilä units and functions worldwide. The aim of the stakeholder questionnaire was to evaluate how important different sustainability topics are for assessments and decision-making of Wärtsilä’s stakeholders. Sustainability topics for the stakeholder evaluation were identified based on Wärtsilä’s previous experience on material sustainability topics, industry peer review, and analysis of significant economic, environmental and social impacts in Wärtsilä’s value chain. Focus on stakeholder assessment was in investors and financiers, major customers, personnel, local societies, and media.

The significance of identified topics was then analysed as a current or potential business impact on Wärtsilä. The business implications of identified sustainability topics were evaluated based on direct financial impacts as well as risks and opportunities. In addition the level of internal policies or practices were used as an indication of potential business impact.

As a result of the materiality assessment, the following GRI topics were identified as material for Wärtsilä:

  • Emissions
  • Environmental Compliance
  • Economic Performance
  • Training and education
  • Occupational health and safety

In addition to the identified material aspects Wärtsilä discloses sustainability data on several other areas, because they are frequently asked by Wärtsilä’s stakeholders or they are considered important on the basis of continuity of sustainability reporting. These non-material topics have not been considered as content for defining the application level of GRI Standards.

Topic boundaries for the identified material topics were then evaluated in reflection to the sustainability context that is based on the significance of their economic, environmental, and social impacts in our value chain. A more detailed description of the topic boundaries and completeness of data collection for the identified material topics can be found in the GRI 103-1-b and GRI 103-1-c, Topic boundary within the organisation and Topic boundary outside the organisation.

Material topics (GRI 102-47)

From a sustainability impact point of view, product-related environmental issues are the most significant for Wärtsilä. The use of Wärtsilä’s products has an environmental impact both locally and globally. Other dimensions of sustainability mainly have a local impact.

Sustainability impact Local Global
Economic
  •  
 
Environmental    
  • Product related
  •  
  •  
  • Operational
  •  
 
Social
  •  
 

The following GRI topics have been identified as material for Wärtsilä’s sustainability reporting:

Category Topics Identified material topic for Wärtsilä, reported in accordance with GRI Standards Other topics included in Wärtsilä Sustainability Reporting Excluded from Wärtsilä Sustainability Reporting
Economic Economic performance
  •  
   
  Market presence  
  •  
 
  Indirect economic impacts    
  •  
  Procurement practices    
  •  
  Anti-corruption  
  •  

 

  Anti-competitive behaviour  
  •  
 
Environmental Materials  
  •  
 
  Energy  
  •  
 
  Water  
  •  
 
  Biodiversity    
  •  
  Emissions 
  •  
   
  Effluents and waste  
  •  
 
  Environmental Compliance
  •  
   
  Supplier Environmental assessment  
  •  
 
Social  Employment  
  •  
 
  Labour/management relations  
  •  
 
  Occupational health and safety
  •  
   
  Training and education
  •  
   
  Diversity and equal opportunity  
  •  
 
  Non-discrimination  
  •  
 
  Freedom of association    
  •  
  Child Labour    
  •  
  Forced or compulsory labour    
  •  
  Security practices    
  •  
  Rights of indigenous peoples    
  •  
  Human rights assessment    
  •  
  Local communities    
  •  
  Supplier social assessment      
  Public policy  
  •  
 
  Customer health and safety  
  •  
 
  Marketing and labelling  
  •  
 
  Customer privacy  
  •  
 
  Socioeconomic compliance  
  •  
 

 

Wärtsilä’s sustainability reporting provides a full disclosure of the management approach, relevant general disclosures and material topic-specific disclosures defined by the GRI Standards.

Topic boundary within the organisation (103-1-b and 103-1-c)

The topic boundary for the material topics is all Wärtsilä companies. The economic performance data covers all Wärtsilä companies. The data on environmental and social performance covers all Wärtsilä companies except the following:

  • Wärtsilä Operations Guyana Inc.
  • Wärtsilä Yuchai Engine Co. Ltd.
  • Wärtsilä Egypt Power S.A.E
  • Wärtsilä Tanzania Ltd.
  • Wärtsilä Muscat LLC
  • American Hydro Corp.
  • Puregas Solutions GmbH
  • Puregas Solutions Ltd
  • Puregas Solutions AB
  • Guidance Marine Ltd
  • Guidance Marine Pte Ltd
  • Guidance Marine LLC
  • Greensmith Energy Management Systems Inc.

These companies will be included in Wärtsilä's sustainable development reporting in the forthcoming years. Wärtsilä's Sustainability Reporting is an integrated part of its annual reporting, and therefore Wärtsilä publishes its sustainability data annually.

Coverage of operational data

Operational data, % of Wärtsilä companies     
  2017 2016 2015 2014 2013
Economic 100 100 100 100 100
Environmental 86 93 83 94 93
Social 100 100 100 100 93
 Operational data, % of personnel
  2017 2016 2015 2014 2013
Economic 100 100 100 100 100
Environmental 96 98 91 98 99
Social 100 100 100 100 99
Operational data, % of product manufacturing
  2017 2016 2015 2014 2013
Economic 100 100 100 100 100
Environmental 100 100 95 100 99
Social 100 100 100 99 93

 

Topic boundary outside the organisation (GRI 103-1-c)

Wärtsilä’s Sustainability Report does not cover performance data collected outside the Group companies.

Explanation of the effect of any re-statements of information provided in earlier reports (GRI 102-48)

There are no major restatements of information provided in previous reports.

Significant changes from previous reporting periods (GRI 102-49)

The list of material topics changed from previous reporting periods so, that in accordance with the materiality analysis in 2017, Anti-corruption is no longer listed among the material topics. There are no significant changes from previous reporting periods in the reporting topic boundaries. Historical data covers all entities that were part of the Group at the end of each reporting period.

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