Prioritization assessment process and updates
We conducted our initial double materiality assessment in 2022. The 2022 assessment identified the list of priority topics that forms the basis of our sustainability reporting to this day. We identified our priority topics based on a range of sources, including:
- Analysis of global megatrends impacting PPG
- Interviews with PPG executives and external stakeholders, including industry representatives
- Formal and informal feedback received from customers and employees
- Strengths, weaknesses, opportunities and threats (SWOT) analyses of PPG's current position
- Review of internal strategy papers, policies and public disclosures
- Environmental and governance reporting frameworks and standards, including surveys shared by external ratings organizations
- Media coverage of PPG and the broader paints and coatings industry
Throughout 2023, we built upon our 2022 assessment to identify risks, impacts and opportunities that aligned with our priority topics. This exercise provided an important baseline for us to understand the company's reporting obligations under the EU Corporate Sustainability Reporting Directive (CSRD). Our prioritization assessment was again reviewed and updated at the end of 2024, to incorporate the most recently published materiality assessment implementation guidance from the European Financial Reporting Advisory Group (EFRAG). This exercise also helped determine the material information to be included in our EU CSRD reporting.
Through these updates, we have continued to develop our understanding of the impacts, risks and opportunities that are most important to our business and stakeholders. We anticipate continuing to regularly review our materiality assessment in the future, to ensure that we are managing and reporting on the most important topics for our evolving business.
Evaluating and prioritizing impacts
We assess PPG's sustainability-related risks, opportunities and impacts using the dual lenses of impacts on stakeholders and risks and opportunities for the company's financial position. This approach ensures our strategy and reporting meets the expectations of investors interested in the long-term success of our business and customers' evolving needs. Our prioritization assessment reflects guidance from global standard setting organizations, including the Global Reporting Initiative (GRI), EFRAG, and the International Financial Reporting Standards (IFRS) Foundation.
Based on our research and a series of internal and external interviews, we maintain a shortlist of issues that are most likely to be impactful for PPG and its stakeholders. Inputs into our analysis include desk research, perceptions of key stakeholders, peer review and discussion with PPG's senior leadership. The list of issues was refined at a workshop with PPG's senior leadership where each issue’s relative impact was considered. Issues were deemed to be a priority based on a combination of qualitative and quantitative thresholds. The results of our materiality assessment are disseminated to everyone that participated in the process, including the Board of Directors, PPG's sustainability committee and interview participants, including functional and business leaders.
Engagement with each of PPG's stakeholder categories is an important part of our strategy, and helps ensure we're prioritizing the most salient issues. See the stakeholder engagement section for information on the variety of ways that we engage throughout our value chain.
In addition to focusing on the priority topics identified by our prioritization process, PPG works to continuously improve our corporate governance and compliance program. This includes addressing important issues, including corporate governance and ethics, data privacy, regulatory compliance, and maintaining a productive relationship with our workforce and labor unions.
Learn more in the governance section.
