Materiality framework

When developing a corporate sustainability program and reporting framework it is critical to properly choose the topics to focus on. MOL Group conducts a Materiality Assessment to identify the most important sustainability impacts of its operations.

MOL Group conducts a materiality assessment each year to rank and classify relevant topics of the oil and gas industry according to how important they are to the external and internal stakeholders of the Company, considering both their financial and non-financial relevance.

The procedure for the materiality assessment does not aim to exclude any of the relevant topics from the sustainability reporting of MOL Group. The assessment is designed to ensure that the most material topics are described with more details, providing the readers with a deeper insight into the sustainability performance.

The result of the assessment is summarized in the matrix below which is also included in the management discussion and analysis chapter of the Annual Report.

Relevant topics are defined in external frameworks such as GRI G4 guidelines and recommendations made by our industry’s professional association (IPIECA).

Internal factors include potential financial impacts and the existence of internal objectives. The key input is the MOL Group level risk matrix that is continuously updated and presented to the Board of Directors and the feedback from our employee representatives.

External stakeholder perception is analyzed through the expert roundtable, on our public forums and using our feedback channel ( Special attention is given to topics that provide information sought after by external sustainability analysts such as RobecoSAM, MSCI and Oekom. Additionally, issues related to governmental initiatives connected to sustainable development might also be judged to be relevant (for example, our compliance with certain pieces of legislation). Moreover, according to the materiality assessment, all of the topics that might have a significant impact on stakeholders are treated as material concerns.

According to the materiality assessment, the most important topics are

  • GHG and energy efficiency,
  • Future product portfolio,
  • Prevention and clean-up of spills,
  • Ethics and transparency,
  • Occupational and process safety.

Issues relevant to local operations are managed and reported locally. The opinion of local stakeholders is considered during the explanation of our impacts and our performance with selected local project examples in our Annual Report.

The link between the topics of the matrix and GRI Standards are listed in the table below. Further explanation on why certain aspects are not considered to be material can be found in the GRI Compliance Table.

Materiality assessment GRI aspect
Topic in the assessment GRI Standards Disclosure
Community relationships Indirect Economic Impacts
Environmental Grievance Mechanisms
Local Communities
Corporate Governance Standard disclosures of GRI
Customers Customer Health and Safety
Product and Service Labeling
Marketing Communications
Customer Privacy
Eco-efficiency Emissions (partially)
Energy efficiency and GHG Energy
Emissions (partially)
Ethics and transparency Anti-corruption
Public Policy
Anti-competitive Behavior
Products and Services
Market Presence
Economic Performance
Future product portfolio Energy (OGSS OG2, OG3)
Fossil Fuel Substitutes (OGSS OG14)
Human resources Employment
Labor/Management Relations
Training and Education
Diversity and Equal Opportunity
Equal Remuneration for Women and Men
Occupational health and safety Occupational Health and Safety
Process safety, Crisis management Asset Integrity and Process Safety (OGSS OG13)
Spills and leakages Effluents and Waste
Topic in the assessment GRI Standards Disclosure
Biodiversity Biodiversity
Human Rights Investment
Freedom of Association and Collective Bargaining
Child Labor
Forced or Compulsory Labor
Security Practices
Indigenous Rights
Suppliers Procurement Practices
Supplier Environmental Assessment
Supplier Social Assessment (Labor Practices, Human Rights, Impacts on Society)