Double-Materiality Assessment

Overview

Hillenbrand conducted its first double materiality assessment (DMA) in 2023, which was disclosed in the company's Sustainability Report. This year, the assessment was performed in accordance with the new CSRD standards, building upon the previous DMA with greater detail and alignment to ESRS topics. It also considered recent business changes, such as the divestiture of Milacron, and is planned to be updated annually. The DMA evaluates sustainability topics from two perspectives: impact materiality, which examines how the company affects society and the environment, and financial materiality, which assesses how sustainability issues influence the company's financial health. The process involves stakeholder engagement, identifying relevant sustainability matters, and analyzing impacts, risks, and opportunities across the entire value chain.

By applying this dual perspective, Hillenbrand gained valuable insights into key sustainability topics, helping to refine its sustainability strategy. The assessment aligns with standards from the International Sustainability Standards Board, SASB, and GRI, demonstrating a commitment to transparent and compliant reporting. The finalized topics and methodology received approval from the Executive Management Team (EMT) and Hillenbrand’s NCGC, reinforcing the company's dedication to responsible sustainability practices and continuous improvement in its reporting processes.

Double-Materiality Matrix

In completing this assessment, the Company identified several material topics. After feedback was collected and procedures were completed, the priority topics were laid out in a double materiality matrix, with Hillenbrand’s impact on the economy, people, and the environment on one axis, and their impact on Hillenbrand on the other. These outcomes inform strategic priorities and reporting disclosures, ensuring alignment with CSRD and stakeholder expectations. Results can be seen in the graphic below.

1 The use of “material” or “materiality” on this page is not related to, or intended to convey, matters or facts that could be deemed “material” to a reasonable investor as referred to under U.S. securities laws or similar requirements of other jurisdictions.