Simplified materiality analysis

The report of the Management Board of the Śnieżka Group for 2023 contains the first non-financial statement of this entity prepared in relation to the European Sustainability Reporting Standards (ESRS), and in terms of certified thematic indicators in accordance with these standards. The decision on this approach to non-financial reporting stems from the adoption of Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022. (Corporate Sustainability Reporting Directive) and the obligation to report and attest to the Śnieżka Group's non-financial data for the first time in 2024.

In order to properly prepare for it, Śnieżka carried out a simplified materiality analysis process with the support of the TAILORS Group consulting company. Representatives of senior management took part in the analysis. The process was divided into two parts.

During the first one, a value chain was developed divided into upstream, own operations, downstream and supporting activities, along with the identification of relationships that result from the business activities of the Śnieżka Group in these areas, understood as the capital group of the following companies: Fabryka Farb i Lakierów Śnieżka SA (parent company), Śnieżka Trade of Colours Sp. z o.o., Śnieżka-Ukraina Sp. z o.o., Śnieżka-BelPol Sp. z o.o., Radomska Fabryka Farb and Lakierów RAFIL SA, Poli-Farbe Vegyipari Kft. The upstream was further divided in terms of natural and material resources acquired by the Group and ready-made materials for the production process. The chain is described in the Report in item 4.3.

The second part identifies the Group’s impacts, risks and opportunities, considering all sustainability issues that ought to be included in the materiality assessment in accordance with ESRS. All impacts, risks and opportunities are located in the supply chain in one of four areas. Impacts were defined as actual or potential and positive or negative.

For the purposes of this process, a system was adopted that allowed for assigning point valuation:

scale, i.e. how serious the impact is, how serious the financial consequences of the risks may be and how much impact the opportunity may have on the bottom line,
the scope of impact effects,
irreversible nature of negative impacts,
the likelihood of potential impacts, risks and opportunities.

The significance of impacts was assessed on the basis of the knowledge and experience of the working group preparing the simplified materiality analysis of the Śnieżka Group. All identified impacts, risks and opportunities were indicated in the Report in item 10.2. (along with their ranking from the most to the least significant), and the non-financial risks described in item 8.3.

The course and result of the process were presented to the Management Board of Śnieżka. A new, full-scale materiality analysis process is planned in connection with work on the Management Board’s Report on the Group’s activities for 2024.

The statement on non-financial information does not include some information related to products, such as part of raw materials that have no substitutes since this is confidential data connected with the intellectual property of the Śnieżka Group.

The sustainable development measures and goals included in the statement on non-financial information result from and refer to: Śnieżka 2023+ Sustainable Development Strategy (adopted for FFiL Śnieżka SA and Śnieżka ToC), selected ESRS thematic indicators (for FFiL Śnieżka SA and the entire Śnieżka Group) and own indicators. Due to the partial application of ESRS standards by the Śnieżka Group for the first time, the information presented in the statement for 2023 may differ methodologically from the one presented in the Report for 2022 – it is not always feasible to indicate the change (or lack thereof) from year to year, as well as a downward or upward trend.

The entity did not identify any errors in the previous Management Report (for 2022).

Compliance with the accounting act

Index of ESRS content and own indicators