Materiality and Stakeholders

Corporate Social Responsibility Report 2015> Environmental Resilience

Materiality and Stakeholders

Nesher has set itself the goal of applying control and evaluation processes to material issues related to its stakeholders, and to adapt the company's strategic planning according to materiality analysis

In 2015 the company conducted a materiality analysis to assess the economic, environmental and social issues that are most relevant to Nesher's internal and external stakeholders, and which are the most likely to significantly influence the company's ability to apply its corporate strategies.

Nesher's 2015 Corporate Responsibility Report takes into account the Company's efforts to report its related activities, highlighting the main issues that emerged from the materiality analyses findings.

This analysis was based on a framework developed by GRI – (Global Reporting Initiative).

Choosing the issues:

Material issues were identified in three stages

1Phase 1 - Identification of material issues

  • Examination of material issues in the cement sector, internal and external
    documentation of the relevant material issues and data analysis
  • Creating a list of relevant issues that need to be considered in the materiality analysis

2Phase 2 – Prioritization of issues

  • Creating a matrix of material issues by priority level

3Phase 3 – Validation

  • Examination of the most important material issues, with emphasis on the
    main concerns of internal and external stakeholders defined as professional opinion leaders.
  • Listing the material issues to be highlighted in the report

Phase 1 –
Identifying material issues

The first phase includes a list of relevant issues that take into account
the following stakeholder

  • Relevance to the business
    • Corporate Responsibility Report – CRH Ltd.
    • Round tables – employees
  • Relevance to the stakeholders
    • Monitoring of information available to the public
    • Ongoing and constant community relations
    • Analysis of internal company questionnaire
    • Opinion of team of experts
  • Main issues in the quarrying sector material issues in the following entities and
    • GRI – Mining
    • SASB – Metal & Mining
  • Main issues in the cement sector material issues in the following entities and organizations:
    • The WBCSD Cement Sustainability Initiative (CSI)
    • SASB - Construction Materials
    • Israeli regulation
    • MAALA index ranking
  • Economic, environmental and social aspect in the local context
    • Round tables – employees
    • Questionnaires for local residents

Phase 2 -
Prioritization of issues

  • The issues listed in the previous stage were ranked as follows to obtain a weighted score for each indicator
  • Score for issue not mentioned – 0
  • Score for an issue mentioned as a qualitative indicator only – 1
  • Score for an issue mentioned as a quantitative indicator only – 2
  • Score for an issue mentioned as a quantitative + qualitative issue – 3

Indicators were given weighted scores that took into consideration the analysis of qualitative and quantitative information, together with discussions with professional teams on whether and how these indicators reflect economic, environmental and social implications for Nesher or influence the Company's decision making processes.

The issues were then entered into a two-axes matrix, with X representing material issues important to Nesher (Importance to Nesher) and Y representing material issues important to stakeholders (Importance to Stakeholders).

Issues of highest importance to Nesher (X axis) were identified and ranked according to degree of importance to the Company derived from an internal digital and anonymous questionnaire, and by means of a weighted score that took into account information obtained from different professional entities, both local and international.

In addition, issues in the 2015 Work Plan that were in fact more highly prioritized regarding financial investment, training, enforcement, project implementation and investment of additional resources received a higher weight in the internal score (X axis) due to their importance to Nesher.

Issues that were of high importance to Nesher stakeholders (Y axis) were obtained from stakeholder requests for information, publication of data on these issues, or through other means relevant to the sector in which Nesher operates specifically to the Company's activity.

List of Material Issues

  • 1Economic Performance –
  • 2Indirect economic impacts –
  • 3Payments to governments –
  • 4Business Ethics –
  • 5Compliance –
  • 6Product Responsibility –
  • 7Product Innovation –
  • 8Customer Health and Safety –
  • 9Security & Emergency Management –
  • 10Greenhouse Gas Emissions –
  • 11Air Quality –
  • 12Energy Management –
  • 13Raw Materials –
  • 14Effluents, Waste & Hazardous Material Management -
  • 15Water Management -
  • 16Biodiversity & Nature Conservation -
  • 17Mining - remediation, reclamation and decommissioning -
  • 18Community Relations -
  • 19Human Rights -
  • 20Workforce Health, Safety & Well-being -
  • 21Employment & Labor Relations -
  • 22Diversity and Equal Opportunity -
  • 23Training and Education –

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Phase 3 –
Validation of findings

Nesher's corporate responsibility team includes three senior executives - VP Human Resources, VP Environmental Affairs
and Senior VP for Policy, Planning and Strategy, and relevant professional members. The team discussed the quantitative
and qualitative findings of the materiality analysis in
accordance with the principles of completeness and inclusiveness. Among other things the findings were examined vis-à-vis the material issues of specific
stakeholders defined as professional opinion leaders in their field. The recommendations resulting from this discussion are presented to Company management as the material issues, and also included in the report.

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