Materiality

The annual development of our materiality matrix - which serves as a guide for strategic decision-making, the setting of priority areas for the Elia group, the management of our ESG issues and the transparent reporting we carry out - has been undertaken since 2019.

Our 2021 matrix (Figure 10) was based on the sources outlined below.

1. Results from the 2020 internal survey we carried out regarding material topics. Managers from across both Elia and 50Hertz were asked to rate the importance of a number of topics from their own point of view and from the point of view of the group’s external stakeholders.

2. The identification of topics which demonstrate ‘double materiality’ - which cover both the impacts the Elia group has on the external environment and the impacts the external environment has on the Elia group. These topics were identified following the design and rolling out of our ActNow programme: in 2021, we identified the SDGs which our five Act-

Now dimensions were most closely aligned with. Once these were identified, we used the results of an analysis carried out by S&P Trucost to identify which Goals demonstrated double materiality.

3. The results of an external consultation that we undertook with our stakeholders in Belgium at the end of 2020. Different stakeholders - who were selected based on their experience with the energy sector and their different interactions with our business - were selected for this. They included stakeholders that we regularly engage with, including public authorities, direct clients, suppliers, sectoral federations and environmental associations. We ensured that these stakeholders represented diverse voices in terms of the language(s) they spoke; the size of the organisations they represented; where their organisations were based; and whether their organisations were from the public or private sector. 4. The results of a series of roundtables organised in 2021 with different types of German stakeholders (policymakers, industry, non-governmental organisations, academia) to discuss the most material elements to successfully decarbonise German society.

5. The results of a survey which was carried out following the Elia group’s first Capital Markets Day in April 2021, which aimed to collect the views of our financial stakeholders. Note that all topics displayed in the 2021 matrix were identified as material by our financial stakeholders in this survey.

6. The results of studies such as the World Energy Council’s World

Energy Issues Monitor and other recognised frameworks (such as the Global Reporting Initiative Sector Supplement for Electric Utilities) were considered to ensure completeness.

In the future, we will continue to monitor international studies of this kind to make sure our materiality matrices stay up-todate. The X axis and Y axis include three possible values which each topic is assigned, based on their importance for the group and our stakeholders (respectively): ‘medium’, ‘high’ and ‘critical’. The chart above reflects the topics that contribute directly to one or more of the UN’s SDGs.

Please see the appendix for further information regarding the assignment of X and Y axis values to each topic.

In future, our annual stakeholders’ day will be used as an opportunity to systematically gather external stakeholder feedback on the importance of each topic, whilst an internal survey of Senior Management will be used to update the X axis values assigned to each topic.

Moreover, our Group Sustainability Office (GSO; see the chapter entitled ‘Corporate bodies and governance’) will from now on oversee the identification and monitoring of new topics to be considered for inclusion in our matrices.

FIGURE 10: OUR MATERIALITY MATRIX

Level of importance for stakeholders Critical

High

Medium

3 2

10 6

9 7 5

8

11

13

14

15 12 4

Medium

16

High Level of importance for the business Critical

The matrix only includes material topics. All the topics above were assigned an average score of >8/10 in the survey undertaken after our Capital Markets Day event on 27 April 2021

1 1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

Network availability & reliability Operational environmental protection Climate-relevant emissions and climate adaptation System and market integration of RES Customer orientation and satisfaction

Technology development and access Risk management Employee Health, Safety and wellbeing at work Transparency and openness Cost and process efficiency Legal and regulatory environment Corruption & bribery Real stakeholder dialogue Biodiversity Employment creation and skills development

Diversity and equal opportunities

Topics which are related to environmental concerns Topics which are related to social concerns Topics which are related to governance concerns

Topics which carry the most importance for our stakeholders and the Group