Double materiality assessment

Double materiality assessment update for 2025

In 2024, Alliander conducted an extensive DMA in line with the requirements from the CSRD and ESRS. In 2025, we performed an update analysis to check whether the material topics identified in 2024 were still relevant. Among other things, this analysis included key acquisitions and/or disposals, relevant amendments to laws and regulations, and changes to our KPI-based management, ultimately confirming that there were no significant changes and the existing material topics could be maintained.

Further development of the DMA

We are confident that our DMA delivers a truthful picture of our material topics and their impacts, risks and opportunities. At the same time, we continue to execute our due diligence procedures and new strategies, activities, modified processes and stakeholder interests may require us to make changes. This not only means that our double materiality is subject to change in the future, but also that our sustainability statement may not cover every impact, every risk and every opportunity that individual stakeholders or stakeholder groups may consider important.

We have summarised the outcome of our DMA in the above materiality matrix. The topics of Climate change (E1), Resource use and circular economy (E5), Own workforce (S1), Workers in the value chain (S2), Consumers and end-users (S4) and Business conduct (G1) are material both from an impact and a financial perspective. These topics are closely related to our strategic priorities of driving the energy transition, delivering a sustainable energy supply, ensuring energy supply security for our customers and communicating with and providing information to our customers. The topics of Pollution (E2), Water and marine resources (E3), Biodiversity and ecosystems (E4) and Affected communities (S3) are not material, neither in terms of impact nor from a financial perspective.

We have not screened our assets and business activities for actual and potential impact risks in our own operations and the value chain with respect to pollution, water and marine resources, and biodiversity and ecosystems. Neither have we engaged with affected communities on these topics. We discussed these topics with internal subject matter experts.

The DMA process in steps

Step 1: identify relevant aspects and issues

We compared the ESRS (sub)topics with the material topics from previous annual reports and other sources, such as peer reviews, Alliander trend reports and strategy documents. A trend report is a periodic analysis of key external developments, including those at our customers, whereby Alliander interprets the impact of these trends on its operations.

Step 2: determine the impacts, risks and opportunities

For all topics that we identified as material in the first step, we determined actual and/or potential impacts, risks and opportunities for our own operations and across our value chain. For our value chain, this mainly involved assessing impacts, risks and opportunities with respect to Workers in the value chain (S2), Climate change (E1) and Circularity (E5).

The topics were assessed on scale, scope, remediability (only in case of adverse impact) and probability.

Financial materiality

Financial materiality was determined based on the Alliander risk framework. Risks and opportunities were rated based on their financial impact and the probability of the risk or opportunity actually materialising. The financial impact was assessed for the short (up to 1 year), medium (1-5 years) and long term (over 5 years).

It must be noted that the defined risks and opportunities may have a material effect on Alliander’s financial position, net profit and cash flows. There is always an inherent risk of a material adjustment to the carrying amount of assets and liabilities in the next reporting period,

Step 3: determine materiality

Alliander determined materiality based on analyses and consultations with experts, designating a topic as material if it was deemed material from an impact or financial perspective. The outcomes have been incorporated into a materiality table.

Step 4: validate relevance to stakeholders

As part of the materiality assessment, we reached out to stakeholders on various occasions to get their input, both through individual interviews and in a group (stakeholder panel), as well as through internal experts who are in direct contact with stakeholders. We used the outcomes in the final assessment of the topics. The resulting material topics recorded in the draft version of the annual report were subsequently discussed with a panel of social actors at an annual session held in December that was also attended by the Management Board.

Our stakeholders confirmed the perception of the material topics, while raising a few focus points. The outcome of the materiality assessment and the scores were brought together in a draft materiality matrix. No impacts, risks or opportunities were specifically suggested by the Works Council or Supervisory Board.

The DMA results and the list of key topics and subtopics were discussed and ultimately adopted by the Management Board and the Supervisory Board. One of the conclusions was that the topics where Alliander has or could have the most impact are largely aligned with the most important strategic challenges Alliander is addressing.

Step 5: place topics in the materiality matrix

The combination of the inside-out and outside-in impact shows how topics affect Alliander’s social performance, thus determining their materiality in the annual report. The materiality matrix shown earlier in this section lists the material and non-material topics for Alliander’s sustainability statement.

(Sub-)subtopics

Based on the ESRS, topics can be broken down into several subtopics and sub-subtopics, although not all subtopics are broken down further into sub-subtopics. The table below gives an overall view of material topics and (sub-)subtopics.

Step 6: sustainability statement

An assessment was made for each European Sustainability Reporting Standard of what information is deemed material for the sustainability statement. Additionally, Alliander uses business-related indicators that we include in the sustainability statement if they are relevant to the accountability process. The materiality designated by the Management Board provides the basis for the organisation of content and for the overall management of the reporting process.

Topics that are not considered material under the ESRS, but are still relevant due to trends, legal requirements or stakeholder interests, may be included in other sections of the annual report or in an appendix.