Material Content Matrix
Our materiality process helps us to identify and assess those issues which are most important to our stakeholders and to the business. These results are then used as the basis for determining the content and structure of our CR report. They are laid out below in a matrix format – click on the relevant title to access the supporting page of the CR report for each of the issues identified.
- Issues reported in detail
- Issues given limited coverage in report
- Issues reported on ‘as needs’ basis
npower has an agreed system for the way in which we manage material issues and a formal process for identifying and assessing those issues which are most material to the business and its stakeholders.
Our process is informed by our ongoing stakeholder engagement exercises and seeks to identify environmental, social and economic issues which are, or might turn out to be, relevant to the business and its stakeholders and to collect the information needed to assess their significance.
Issues are then prioritised according to their significance and, where necessary, further information is sought to ensure sound decision-making and action. The formal process is reviewed annually to ensure that the materiality determination is considered sound and credible and that the business has accepted its findings and considered their implications.
Material issues generally remain important for long periods of time – years rather than months. Our formal external review of the matrix in 2011 benchmarked our matrix against other large UK utility suppliers and included feedback from our external stakeholders. The review did not identify any new issues to add to the matrix, or any that should be removed.
In 2012, we implemented materiality process changes in order to make the prioritisation of issues more consistent and auditable. Despite this, there were no changes in prioritisation as shown above, although the changes have allowed our managers to update information regarding the issues more regularly and to understand and challenge the ratings given. This allows for a higher level of confidence in the matrix.