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Materiality is Broken: A New Approach to Materiality
Assessment that Overcomes Current Flaws
Daniel Aronson
Founder
VALUTU...
The Future of

Materiality
SB New Metrics 2018
!3
What is the Core of Materiality?
Respond at:
www.pollev.com/valutus
À 0 k
Core Function Investment Broken
!4
Key Questions
Fixes
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Core Function Investment Broken
!5
Key Questions
Fixes
À 0 k
Core Function Investment Broken
!6
Key Questions
Fixes
S p e c i a l t y P r o d u c t s D i v i s i o n
October 29 2018
Materiality in
Future DuPont
Rose Perkins
Sustainability...
S p e c i a l t y P r o d u c t s D i v i s i o n !8
BRINGING TOGETHER TWO COMPLEMENTARY PORTFOLIOS WITH
INTENTION TO CREA...
S p e c i a l t y P r o d u c t s D i v i s i o n !9
S p e c i a l t y P r o d u c t s D i v i s i o n
Objectives for Materiality/Listening Sessions
!10
• Gather insights that...
S p e c i a l t y P r o d u c t s D i v i s i o nInternal Use Only
Approach
• Corporate-led (soft touch to business) progr...
S p e c i a l t y P r o d u c t s D i v i s i o nInternal Use Only
Back Up if Questions
!12
S p e c i a l t y P r o d u c t s D i v i s i o n !13
Company Materiality Map
Circular Economy-12
Employee Safety
GHG Emis...
S p e c i a l t y P r o d u c t s D i v i s i o nInternal Use Only
Questions for Discussion
!14
1.  What do you see as the...
Thank You
The Specialty Products Division of DowDuPont is a global innovation leader with technology-based materials, ingr...
Birth of Sustainability Context: GRI G2 (2002)
!16
• [S]ustainability reporting draws significant meaning from the
larger ...
À 0 k
Core Function Investment Broken
!17
Key Questions
Fixes
!18
What is Your Time Investment in Materiality?
Respond at:
www.pollev.com/valutus
!19
What is Your Budget Investment in Materiality?
Respond at:
www.pollev.com/valutus
À 0 k
Core Function Investment Broken
!20
Key Questions
Fixes
Question
Timeframe
Submerged Value Dependencies
Lorem ipsum dolor sit amet, consectetuer
adipiscing elit. Aenean commodo l...
Mark McElroy, Social Footprints, 2008
A
S = ---
N
(Numeration)
(Denomination)
The ‘Sustainability’ Quotient
The Need: 99.7% of Sustainability Reporters Ignore Context
!23
À 0 k
Core Function Investment Broken
!24
Key Questions
Fixes
Atomic Sustainability Design System | | Natural Logic Inc. | | June 7, 2018
Materiality Matrix
Atomic Sustainability Design System | | Natural Logic Inc. | | June 7, 2018
3D Materiality Matrix
Atomic Sustainability Design System | | Natural Logic Inc. | | June 7, 2018
3D Materiality Matrix - rotated
Atomic Sustainability Design System | | Natural Logic Inc. | | June 7, 2018
3D Materiality Matrix - rotated
Atomic Sustainability Design System | | Natural Logic Inc. | | June 7, 2018
Gil Philip Friend
Natural Logic, Inc
gfriend@n...
!30
Potential Fix: Valutus Tool
The Reporting 3.0 Integral Materiality Process‘
• Materiality determination process Baked

into a p-d-c-a approach, allowi...
Materiality is Broken: A New Approach to Materiality Assessment that Overcomes Current Flaws - Daniel Aronson, Gil Friend,...
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Materiality is Broken: A New Approach to Materiality Assessment that Overcomes Current Flaws - Daniel Aronson, Gil Friend, Ralph Thurm & Rose Perkins

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Companies that take sustainability seriously spend time and resources creating and updating their materiality assessments. But what if the way materiality assessments are done today is deeply flawed, and maybe does more harm than good? This session will discuss what’s wrong with materiality analyses and how to fix it. Attend to find out why leading experts think ‘materiality is broken’ and how to change it to get true value out of it.

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Materiality is Broken: A New Approach to Materiality Assessment that Overcomes Current Flaws - Daniel Aronson, Gil Friend, Ralph Thurm & Rose Perkins

  1. 1. Materiality is Broken: A New Approach to Materiality Assessment that Overcomes Current Flaws Daniel Aronson Founder VALUTUS @DanielAronson Ralph Thurm Managing Director REPORTING 3.0 @Reporting3 Gil Friend Sustainability Pioneer NATIONAL LOGIC INC. @gfriend Cassandra Garber Global sustainability Leader 3M @3M Rose Perkins Associate Director, Sustainability THE DOW CHEMICAL COMPANY @dowsilicones
  2. 2. The Future of
 Materiality SB New Metrics 2018
  3. 3. !3 What is the Core of Materiality? Respond at: www.pollev.com/valutus
  4. 4. À 0 k Core Function Investment Broken !4 Key Questions Fixes
  5. 5. À 0 k Core Function Investment Broken !5 Key Questions Fixes
  6. 6. À 0 k Core Function Investment Broken !6 Key Questions Fixes
  7. 7. S p e c i a l t y P r o d u c t s D i v i s i o n October 29 2018 Materiality in Future DuPont Rose Perkins Sustainability Strategy Leader
  8. 8. S p e c i a l t y P r o d u c t s D i v i s i o n !8 BRINGING TOGETHER TWO COMPLEMENTARY PORTFOLIOS WITH INTENTION TO CREATE THREE GLOBAL LEADERS + One of the strongest, deepest chemistry toolkits with robust technology and asset integration, scale and competitive capabilities Broad offering and 
 robust pipeline across germplasm, biotech traits 
 and crop protection World-class 
 innovation process 
 and application development capabilities AGRICULTURE MATERIALS SCIENCE SPECIALTY PRODUCTS
  9. 9. S p e c i a l t y P r o d u c t s D i v i s i o n !9
  10. 10. S p e c i a l t y P r o d u c t s D i v i s i o n Objectives for Materiality/Listening Sessions !10 • Gather insights that will inform the potential focus areas for future company-level sustainability goals • Build understanding and alignment with key internal and external stakeholders • Learn what’s being prioritized at the business level • Allow our stakeholders to be heard
  11. 11. S p e c i a l t y P r o d u c t s D i v i s i o nInternal Use Only Approach • Corporate-led (soft touch to business) program to gather insights that will inform the potential focus areas for future company-level sustainability goals • Internal stakeholder sessions w/Businesses and Functions • External stakeholders – customers, NGO, Investor, etc. • Partner with external strategy expert to review internal feedback, assist external engagements, conduct data analysis project work, provide assistance on goal development process, and educate leadership • Document findings and schedule discussions with DuPont Leadership on key learnings and potential focus areas for sustainability goals by end of year !11
  12. 12. S p e c i a l t y P r o d u c t s D i v i s i o nInternal Use Only Back Up if Questions !12
  13. 13. S p e c i a l t y P r o d u c t s D i v i s i o n !13 Company Materiality Map Circular Economy-12 Employee Safety GHG Emissions- 7,13 Water Mgt-6 Human Rights 5, 8, 16 Renewable Energy-7, 13 Bio-based Economy 13, 11 Diversity & Inclusion 5,10 Community Impact/ Protection 8,11,15 Energy Mgt- 13 Responsible sourcing, traceability * Ecosystem protection 2,14, 15 Impact/Importance on Future DuPont ImportancetoStakeholders Product Safety /Transparency* Sustainable Innovation* EthicsMust haves: Employee Wellbeing-3,10 Low High LowHigh Emp Engagement Process SafetyCompliance Digitization/AI* Emissions, waste, effluents 6, 11,12, 15
  14. 14. S p e c i a l t y P r o d u c t s D i v i s i o nInternal Use Only Questions for Discussion !14 1.  What do you see as the sustainability trends, threats and opportunities that will most impact DuPont in the next 5-10+ years?  2.  From your perspective, what sustainability areas should DuPont focus on?  In other words, do you see links between DuPont’s portfolio  and the market needs that are created by the key sustainability trends?  3.  Do you believe it’s important for companies to have aspirational/ “stretch” sustainability goals? What would you recommend as potential areas for our consideration in creating stretch goals (Climate, D&I, SDGs, etc.)?  4.  As a premier innovation company, do you think it’s important for DuPont to demonstrate leadership in sustainability?  Why or why not?  5. What are your expectations for communicating progress related to sustainability/goal progress?( how, how often, and with whom) 6. Are there are topics we need to consider?
  15. 15. Thank You The Specialty Products Division of DowDuPont is a global innovation leader with technology-based materials, ingredient and solutions that help transform industries and everyday life. Our employees apply diverse science and expertise to help customers advance their best ideas and deliver essential innovations in key markets including electronics, transportation, building and construction, health and wellness, food and worker safety. DowDuPont intends to separate the Specialty Products Division into an independent, publicly traded company. More information can be found www.dow-dupont.com. ©2018 DowDuPont. All rights reserved. DowDuPont™ is a jointly owned trademark of The Dow Chemical Company and E.I. du Pont de Nemours and Company, or their affiliates.
  16. 16. Birth of Sustainability Context: GRI G2 (2002) !16 • [S]ustainability reporting draws significant meaning from the larger context of how performance at the organisational level affects economic, environmental, and social capital formation and depletion at a local, regional, or global level. • [S]imply reporting on the trend in individual performance (or the efficiency of the organisation) leaves open the question of an organisation’s contribution to the total amount of these different types of capital. • [P]lacing performance information in the broader biophysical, social, and economic context lies at the heart of sustainability reporting. • This will involve discussing the performance of the organisation in the context of the limits and demands placed on economic, environmental, or social resources at a macro-level. • G3 & G4:
  17. 17. À 0 k Core Function Investment Broken !17 Key Questions Fixes
  18. 18. !18 What is Your Time Investment in Materiality? Respond at: www.pollev.com/valutus
  19. 19. !19 What is Your Budget Investment in Materiality? Respond at: www.pollev.com/valutus
  20. 20. À 0 k Core Function Investment Broken !20 Key Questions Fixes
  21. 21. Question Timeframe Submerged Value Dependencies Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Aenean commodo ligula eget dolor. Aenean massa. Cum sociis natoque penatibus et magnis Stakeholders Time Delays 21 Where Materiality is Broken
  22. 22. Mark McElroy, Social Footprints, 2008 A S = --- N (Numeration) (Denomination) The ‘Sustainability’ Quotient
  23. 23. The Need: 99.7% of Sustainability Reporters Ignore Context !23
  24. 24. À 0 k Core Function Investment Broken !24 Key Questions Fixes
  25. 25. Atomic Sustainability Design System | | Natural Logic Inc. | | June 7, 2018 Materiality Matrix
  26. 26. Atomic Sustainability Design System | | Natural Logic Inc. | | June 7, 2018 3D Materiality Matrix
  27. 27. Atomic Sustainability Design System | | Natural Logic Inc. | | June 7, 2018 3D Materiality Matrix - rotated
  28. 28. Atomic Sustainability Design System | | Natural Logic Inc. | | June 7, 2018 3D Materiality Matrix - rotated
  29. 29. Atomic Sustainability Design System | | Natural Logic Inc. | | June 7, 2018 Gil Philip Friend Natural Logic, Inc gfriend@natlogic.com natlogic.com 510-435-6346 @gfriend
  30. 30. !30 Potential Fix: Valutus Tool
  31. 31. The Reporting 3.0 Integral Materiality Process‘ • Materiality determination process Baked
 into a p-d-c-a approach, allowing to touch
 every part of the organisation • Pulls Sustainability Context and Materiality
 together as ‘Relevance’, not supporting 
 what’s just ‘practically possible’, but 
 ‘necessary’ (given context clarity) • Starts with ‘Rightsholders’ instead of flawed
 stakeholder relativism • Embeds capitals, thresholds and allocations
 as ‘necessary elements’ to allow proper
 relevance consideration • Integrates integral thinking into risk, 
 governance, innovation, leadership 
 development

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