In order to establish strategic priorities in sustainability, in 2021 Grupo Lamosa carried out its first materiality analysis, with a selection of the most important stakeholders and the strategic participation of senior management.
The concept of double materiality was used to carry out the sustainability analysis, taking into account: on the one hand, the most significant impacts of Grupo Lamosa outward, in sustainability topics that are material to the economy, the environment and society (socio-environmental materiality); and, on the other hand, the environmental, social and corporate governance (ESG) issues with a reasonable probability of affecting the company’s financial position, operating performance and cash flows (financial materiality).
Process for financial materiality
The Sustainability Accounting Standards Board (SASB) has carried out a process of analysis and international consultation to construct standards by industry. In the company’s materiality analysis, the standards established by this initiative for those sectors in which Grupo Lamosa is active were used: construction products and furniture; and multi-line and specialized distributors and retailers. Additionally, important aspects of the operations (such as main revenue streams and main inputs for value creation) and the operating environment (economic, regulatory, operating and business environments) were reviewed, in order to identify additional indicators not identified in the previously-mentioned standards, as well as to exclude indicators identified within the standards that do not apply to Grupo Lamosa. These elements were then integrated into the methodology for obtaining the socio-environmental matrix.
Process for socio-environmental materiality
Using the four-step process that the Global Reporting Initiative (GRI) recommends for carrying out materiality analyses, potentially relevant topics were identified by analyzing the main risks and opportunities of the sectors in which Grupo Lamosa operates. Specific references were used in the management of ESG issues, such as the S&P/SAM Sustainability Yearbook 2021 for construction materials, to mention just one example. Once the potential material topics for the company were identified, interviews, focus groups and surveys were conducted with senior management and the company’s diverse stakeholder groups (employees, customers, distributors and suppliers), in order to prioritize these topics. The activities carried out led to the creation of a two-axis matrix and the determination of the material topics.
Senior management validated the 16 material topics identified internally.
The matrix presenting the two materialities is shown below:
Socio-environmental material topics
Financial material topics
|Socio-environmental||4||Employee health and safety|
|Socio-environmental||6||Quality products (customer health)|
|Both||7||Talent attraction and retention|
|Socio-environmental||8||Multi-channels and relations with distributors|
|Socio-environmental||9||Automation and operational process efficiency|
|Both||11||Energy use management|
|Financial||13||Product life cycle|
|Financial||15||Management of chemical compounds in products|
|Financial||16||Diversity and inclusion in the workforce|
Grupo Lamosa maintains a close dialogue with all its stakeholders, who actively contribute to its operations and place their trust in the company’s strategy. The value proposition for each of them is presented below.
|Value proposition||Generate economic value, guaranteeing the company’s financial sustainability over time and moving forward in accordance with the approved strategic plan. Identify and address risks and opportunities. Be transparent about results, including ESG performance.||Channels||Stockholders’ meetings
Investor relations area
Meetings with analysts
Reports on results
|Stakeholders||Value proposition||Partner to make it easier for products to reach the end consumer, through coordinated inventory management, innovative products and the support of the company’s brands.||Channels||Distribution agreements
Visits from area and/or product managers
|Stakeholders||Value proposition||Contribute to creating the best conditions in homes and work spaces, with quality materials that meet the different consumer needs. Implement an innovative approach to changes in lifestyles.||Channels||Third-party stores
Visits from commercial advisors
Websites for the company’s brands
Focus groups and other consultations
|Stakeholders||Value proposition||Offer employment opportunities and professional development, safeguarding health and safety. Create teams that consider employees’ wellbeing and promote their commitment.||Channels||Work environment evaluation
|Stakeholders||Value proposition||Partner to offer quality products, with suppliers showing behaviors aligned with company principles and values. Develop an efficient relationship that guarantees the continuity of Grupo Lamosa’s production and the corresponding financial return for the supplier.||Channels||Transparency line
Contracts and purchase orders
Development of local suppliers and SMEs (Small and medium-sized enterprises)
|Stakeholders||Value proposition||Operate according to the law, abiding by ethical principles.||Channels||Participation in meetings on important topics and consultation forums
Response to requirements
|Stakeholders||Value proposition||Offer opportunities to materialize innovation in materials, technology and products, and generate jobs for different professionals. Make agreements for research projects and/or internships.||Channels||Participation in job fairs
Presence in events on relevant topics
|Stakeholders||Value proposition||Respect their interest and provide appropriate attention in operations and relationships with the different stakeholders. Highlight the company’s performance in such a way as to increase the scope of the interest groups reached.||Channels||Press conferences
Participation in reports and/or interviews
|Stakeholders||Value proposition||Be a good neighbor, generating employment and development opportunities, and protecting the environment without adversely affecting living conditions.||Channels||Transparency line
Donation program Dialogue with neighbors