Material Issues
Material Issues
The issues identified for this report have been cross-referenced to SASB and GRI.102-49 For each issue, we evaluated whether they are of high, medium or low impact for both Vermilion and for our potential impact beyond the company. Our materiality matrix reflects an increased importance for regulatory frameworks and community support, for example, and an increasing focus on water management, biodiversity and supply chain risk.
We use the following parameters to assess the level of impact on Vermilion:
High | Medium | Low |
|---|---|---|
Critical or immediate (12-month) risk to health & safety, environmental management, financial performance, reputation, employee relations, community relations, or social license to operate
| Important but not critical risk; risk may be mid-term (2-6 years)
| Small or no risk; risk may be longer term (6-10 years)
|
Strong opportunity to significantly increase financial performance or operational efficiency
| Good opportunity to increase financial performance or operational efficiency
| Does not apply in our geographic operating areas or to our business
|
Likely reflected in externally and internally stated policies and/or commitments
| Likely reflected in internally stated policies and/or commitments; may be included in external policies and/or commitments
| Small or no opportunity to increase financial performance or operational efficiency
|
May or may not be reflected in policies and/or commitments
|
We also take into consideration how directly affected the stakeholders are (for example, employees and fenceline communities are more directly affected by Vermilion’s operations than NGOs). We then integrate those results to identify where issues had a common impact or concern spanning several key stakeholder groups. In 2022, our Board, Executive Committee and senior leaders provided input into our updated materiality analysis, shown below. 102-46 102-47 103-1
