Stakeholder interaction and materiality

In this Integrated Annual Report, we report on the topics that matter to our company and our stakeholders. In 2023, we carried out our first double materiality assessment to determine these topics, marking the next step in our sustainability reporting journey.

We regard our stakeholders as those groups who are impacted by our actions or who have an impact on us (or both). Accordingly, VodafoneZiggo has identified seven main stakeholder groups: our customers, employees, suppliers, the investor community as well as the wider industry, the government and society at large. It is important for us to maintain ongoing contact with these groups, so we know what is going on in their world and what role they see for VodafoneZiggo. For more information on how we engaged with these stakeholders in 2023 and on what topics, see Stakeholder table.

From single to double materiality

VodafoneZiggo has been conducting materiality assessments via stakeholder surveys and other inputs since 2021. In 2023, we took the next step in our sustainability reporting journey, carrying out our first double materiality assessment. Our aim was to identify, understand and rank the material Impacts, Risks and Opportunities (IROs) related to the ESG topics considered relevant to VodafoneZiggo. For each topic, we approached the analysis from two perspectives:

• Impact materiality: our company’s actual or potential material impact (either positive or negative) on the environment and society in which we operate.

• Financial materiality: the financial risks and opportunities for our company and our ability to generate enterprise value, that are associated with the topic.

The double materiality assessment process consisted of five phases.

We began by researching VodafoneZiggo’s current state and external context, including comprehensive desk research. As well as consulting internal documents, international ratings and standards and the materiality analyses of selected peers, considered the topics and sub-topics from the European Sustainability Reporting Standards (ESRS), in line with requirements of the Corporate Sustainability Reporting Directive (CSRD). We consolidated the outcomes of this research into a draft shortlist of 17 potential material ESG topics for our business (see chart on next page).

In this phase, we determined where IROs might occur in VodafoneZiggo’s value chain. We used internal documents and interviews with the project team to categorise our value chain relationships into upstream, operational and downstream activities.

The next step was to identify and understand the material (potential) IROs related to VodafoneZiggo’s ESG topics. To this end, we reviewed internal documentation, relating to material matters, risk management framework and VodafoneZiggo’s strategy, as well as industry-specific annual reports. We then interviewed relevant internal stakeholders to gather their views on each shortlisted topic’s impact materiality and financial materiality and draft an extensive list of IROs per sustainability topic.

In this phase, our internal stakeholders scored the identified IROs (positive and negative, actual, and potential) on severity and likelihood for impact materiality, and on size of potential financial effect and likelihood for financial materiality, according to defined thresholds. Through this exercise, we identified potential material sustainability topics and determined which of these topics are material based on the predefined threshold for materiality and should therefore be part of VodafoneZiggo’s reporting obligations under CSRD.

The final stage was securing leadership validation of the outcomes of our prioritisation activity. This took place through a validation session that was attended by representatives from VodafoneZiggo’s Senior Leadership Team. Of the 17 shortlisted ESG topics, ten were deemed material for our business and hence subject to future CSRD reporting requirements. The remaining seven topics continue to be highly relevant for us, and we will continue to monitor them closely as the external and internal landscape evolves.

Our double materiality assessment resulted in several changes to VodafoneZiggo’s list of material topics compared to 2022:

• ‘Environmental performance’ has been replaced by two more specific topics: ‘Climate change’ and ‘Circular economy’.

• ‘Data security and privacy for our customers’ has become ‘Data security and privacy’.

• ‘Digital inclusion for everyone’ has become ‘Digital inclusion’.

• ‘Putting the customer first’ has become ‘Customer experience’.

• ‘Innovative products and services for society’ has become ‘Innovative products and services’.

• ‘Financial performance’ and ‘Digital and transformative organisation’ have been removed from the list in phase 1 of the double materiality assessment as these are not considered ESG topics.

• ‘Governance and Compliance’, ‘Working ethically’ and ‘Electromagnetic radiation’ are not material based on the double materiality assessment for 2023.

For the 2023 double materiality assessment, we considered external stakeholder perspectives during our internal validations. Through extensive interaction with external stakeholders (as summarised in the Stakeholder table), our internal stakeholders are aware of external perspectives and able to incorporate these in the double materiality assessment. VodafoneZiggo plans to engage external stakeholders in subsequent years to further reinforce the double materiality assessment. We continue our journey towards CSRD implementation and will reassess material topics in subsequent years. Therefore, the double materiality assessment is subject to new insights and potential changes going forward.

Our material topics

The material topics referred to in this report, are presented below in connection to our strategic pillars. Topics 1 to 5 have been assigned the highest possible materiality score, either from the perspective of impact materiality or from the perspective of financial materiality. Topics 6 to 10, while still material, have been assigned a slightly lower materiality score.

Reliable and future-proof network

Working with our partners on a reliable, innovative and future-proof network that is available to everyone.

Data security and privacy

Protecting customers, consumers and companies against (cyber)crime and handling personal data in a responsible way.

Innovative products and services

Offering innovative products and services that connect people, help them move forward and enable them to participate in a digital society that is more secure, more efficient, healthier and cleaner.

Innovative products and services

Offering innovative products and services that connect people, help them move forward and enable them to participate in a digital society that is more secure, more efficient, healthier and cleaner.

Customer experience

Putting customers first by listening to them and improving and developing existing and new products and services.

Climate change

Reducing our negative impact on the environment to create a sustainable business and ensure operational resilience.

Digital inclusion

Helping people learn digital skills to ensure that everyone in the Netherlands can participate in the digital society in a responsible way.

Employer of choice

Supporting employees in their personal development with training courses, individual guidance and attractive terms and conditions of employment. To achieve this, we also focus on having a positive impact on the health and safety of our employees and our environment.

Diversity, equity and inclusion

Creating a diverse and inclusive working environment that reflects society and is a place where everyone feels safe and at home.

Circular economy

Advocating for and enabling sustainable growth by reducing waste and promoting the efficient use of resources through recycling and refurbishing of customer products and our own operations.

Sustainable and ethical supply chain

Working with our partners to ensure we have an honest, ethical and sustainable purchasing and sales chain that addresses the rights and welfare of the workers in the chain.

Our purpose - enjoyment and progress with every connection - guides our focus across our five strategic pillars.