Introducing Materiality Assessment and VSME
We use EFRAG’s Voluntary Sustainability Reporting Standard (VSME) as the backbone for our materiality work.
Why VSME, and how it guides us
VSME follows the same double‑materiality logic as CSRD/ESRS, but is more proportionate for Intilitys current scope. This allows us to:
- fulfill expectations from customers on data collection and sustainability reporting,
- build a robust, impact‑based approach now, and
- gradually scale our data, governance and reporting towards CSRD‑level quality.
The Method
Based on VSME, we defined Intility-specific themes (platform security & resilience, data center operations, responsible sourcing & supply chain conduct, transport & logistics, ICT equipment lifecycle, people, competence & working environment and facilities & onsite operations) as umbrella terms for Intilitys activities. For each theme we identified concrete positive and negative impacts, assessed whether they are actual or potential, and scored consequence and irreversibility/durability (negative/positive) from 1–5, using the product of the two scores as a scale of severity. Impacts of severities above 12 are considered material, with room for expert judgement. The assessment was done in a cross-functional group and forms the basis for goals and measures described later in the report.
The fact that Intility reports according to VSME for the first time, the second part of the double materiality assessment, the financial materiality, has not been described in this report, although it was conducted. The information included in this report, focusing on impacts, is considered to be a natural step to more full-scope double materiality going forward. Still, risks and opportunities are directly and indirectly addressed in this report, yet not in a financial materiality framing.
| Intility Specific Themes | Description | ESG | |
|---|---|---|---|
| T1 | Data Center Operations | Energy consumption, renewable sourcing and carbon footprint of data center infrastructure | Environmental |
| T2 | ICT Equipment Lifecycle | Responsible sourcing, reuse and end-of-life management of hardware and ICT equipment | Environmental |
| T3 | Transport & Logistics | Emissions from employee travel and logistics of equipment and materials | Environmental |
| T4 | Platform Security & Resilience | Availability, security and resilience of the technology platform delivered to customers | Governance |
| T5 | People, Competence & Working Environment | Employee health, safety, development, retention and workplace culture | Social |
| T6 | Responsible Sourcing & Supply Chain Conduct | Human rights, labour standards and environmental conduct in supply chain | Environmental, Governance, Social |
| T7 | Facilities & Onsite Operations | Environmental impact of Intility’s physical offices and on-site operations | Environmental |
Double Materiality Assessment – Impact Dimension
The table below lists all 24 impacts identified across the seven Intility specific themes. Material impacts are shown in bold. Positive impacts are shown in green; negative impacts in red. Impact severity is the product of consequence and irreversibility (for negative impacts) or durability (for positive impacts), each scored 1–5, producing a severity scale of 1–25.
| Intility-specific theme | Impact ID | Impact Description | Impact severity | Value chain | Rationale for severity and materiality |
|---|---|---|---|---|---|
| T1 – Data Center Operations | I01 | Resource and climate footprint from data center operations | 16 | Operations | Energy use is high and growing; climate effect is lasting. Core activity and one of Intility's largest environmental drivers. Leverage through technology and supplier choices. |
| I02 | Impact on local environment (biodiversity and fauna) | 2 | Operations | Indirect, managed primarily by data center operators. Low severity relative to other impacts. | |
| I03 | Reduced climate footprint for customers through renewable-powered data center consolidation | 6 | Downstream | Real effect but difficult to quantify per customer. More a qualitative value proposition than a managed reporting point. | |
| I04 | Demanding working conditions for employees in onsite and data center roles | 9 | Operations | Shift work and physical demands can create meaningful HSE challenges. Intility has responsibility to address conditions among critical suppliers. | |
| T2 – ICT Equipment Lifecycle | I05 | Improved digital security and privacy for customers through structured endpoint management | 16 | Downstream | |
| I06 | Extended equipment lifespan and reduced resource use through lifecycle management | 16 | Downstream | ||
| I07 | Local environmental impact (water, air, land) and water use in ICT manufacturing | 12 | Upstream | ||
| I08 | Generation of electronic waste from customer equipment | 6 | Downstream | ||
| I09 | Climate and environmental footprint from e-waste processing | 16 | Downstream | ||
| I10 | Positive climate and environmental effect from responsible e-waste solutions for customers | 16 | Downstream |
Materiality Matrix
The materiality matrix on the right plots Intility's seven themes across two dimensions: impact materiality (the severity and breadth of Intility's effects on people and the environment) and financial materiality (the significance of sustainability-related risks and opportunities for Intility as a business). Themes in the upper right represent the highest combined priority.
Four themes emerge as priority: T4 Platform Security & Resilience, T2 ICT Equipment Lifecycle, T6 Responsible Sourcing & Supply Chain Conduct, and T1 Data Centre Operations, reflecting that Intility's most significant impacts and risks concentrate in its core technology infrastructure and upstream supply chain.
Note that financial materiality positions are indicative, based on qualitative assessment. Full financial materiality analysis will be developed in future reporting cycles.