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Philips 2023

In this backtest, we are looking at Philips, the Dutch multinational conglomerate. The data was pulled on 15 October 2024. Both Philips' and our OSMA analysis concur in the majority of ESRS topics to be included, and excluded. Rather than conducting lengthy and expensive stakeholder surveys every year, risking stakeholder fatigue, OSMA offers a quick and simple way to check for any changes that can be trusted to produce comprehensive and reliable results.

Alignment of Topic Materiality​

Philips 2023

Comparing the two assessments, there is significant agreement in what is material. Mettle would include E4 Biodiversity, where Philips choose not to. Philips include S2 Workers in the Value Chain which Mettle doesn't determine material. Outside the ESRS taxonomy both Mettle and Philips include Artificial Intelligence as being a material consideration.

Topic Materiality over time​

2023

2024

There is relatively little change year on year on what is material. Within E5 Circular Economy the sub-topic of E5.3 Waste, has gained some importance. G1 Business Conduct remains important but with subtopics of G1.3 Animal welfare and G1.1 Corporate Culture increasing in materiality.

Which sub-topics are showing shifts in materiality​

Within E1 Climate Change, most sub-topics are showing a decrease in materiality but that is largely driven by the increase in materiality of in E1.3 Energy. With the increase in range of G1 topics becoming material the proportional materiality of relationships with suppliers appears to have decreased - however it is still remains most important topic overall.

Materiality of Non-ESRS subtopics​

Developed using SASB taxonomy and Mettle's own unique Trust, Reputation, Thematic models. The taxonomies intentionally have some overlap with each other and with the ESRS taxonomy. Key to this analysis is identifying new topics not specified in ESRS, but meeting the requirement to determine anything else that is material. In Philips case Artificial Intelligence was highlighted in their annual report as a key sustainability topic, our analysis concurs. We would also suggest including Innovating, Privacy, and Leadership as being material to full CSRD reporting.