Material topics

METLEN acknowledges the material actual or potential impacts, either positive or negative, on people or the environment, medium or long term, which are associated with its activities. More specifically, it has established a set of control mechanisms that make up the due diligence framework for sustainability. This framework is continuous and includes an uninterrupted cycle of impact identification, assessment, mitigation measures, goal setting, and performance improvement. For METLEN, the Double Materiality process is a methodological approach that enables METLEN to identify, understand, assess and analyze in greater depth the environmental, social and ethical impacts of its activity. This methodology makes it possible to identify material impacts and to consider the interdependencies between them and financial actors.

More specifically, the two main dimensions of the methodology followed include:

1. A) Impact materiality: METLEN focuses on the actual and potential impacts of its activity on the environment and society, as well as on governance issues, based on their severity and likelihood of occurrence. The analysis was fully aligned with the CSRD Directive, expanded to issues related to its business relationships and highlighted those related to the impact on sustainable development;  risks and opportunities. See more here.
2. B) Financial materiality: METLEN examines whether and to what extent the environmental, social and ethical impacts of the Company's activity cause risks or opportunities that affect or may affect its financial performance, reputation and ability to continue its operations unhindered. As a fundamental assumption of the assessment, it was set that the impact on the Company's sustainability can become financially significant,  that is, either immediately from their inception or detection, or at a later stage, possibly affecting its financial position. See more here.

To identify the material topics, quantitative thresholds were applied, while qualitative characteristics were also taken into account. Applying the thresholds highlighted the material impacts and the associated risks and opportunities, which are presented in detail in this Sustainability Statement.