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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 34. 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, 102-54)

Wärtsilä's Sustainability Reporting 2018 is prepared according to the GRI (Global Reporting Initiative) Standards (2016) 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. The 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.

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

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Environmental

 

 

  • Product related

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  • Operational

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Social

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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

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Market presence

 

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Indirect economic impacts

 

 

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Procurement practices

 

 

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Anti-corruption

 

 

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Anti-competitive behaviour

 

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 Environmental

Materials

 

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Energy

 

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Water

 

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Biodiversity

 

 

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Emissions

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Effluents and waste

 

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Environmental Compliance

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Supplier Environmental assessment

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Social

Employment

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Labour/management relations

 

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Occupational health and safety

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Training and education

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Diversity and equal opportunity

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Non-discrimination

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Freedom of association

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Child Labour

 

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Forced or compulsory labour

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Security practices

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Rights of indigenous people

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Human rights assessment

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Local communities

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Supplier social assessment

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Public policy

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Customer health and safety

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Marketing and labelling

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Customer privacy

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Socioeconomic compliance

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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:

  • Transas
  • Trident B.V.
  • Burriel Navarro S.L.

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     

 

2018

2017

2016

2015

2014

Economic

100

100

100

100

100

Environmental

 97

86

93

83

94

Social

100

100

100

100

100

 

Operational data, % of personnel

 

2018

2017

2016

2015

2014

Economic

100

100

100

100

100

Environmental

93

96

98

91

98

Social

100

100

100

100

100

 

Operational data, % of product manufacturing

 

2018

2017

2016

2015

2014

Economic

100

100

100

100

100

Environmental

100

100

100

95

100

Social

100

100

100

100

99

 

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)

As of 1 January 2018, Wärtsilä adopted the IFRS 15 Revenue from Contracts with Customers standard, and as a result, the financials 2017 were restated accordingly.

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

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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