Material Risks

As a company that operates on a global scale, we are aware of our position as a role model and our obligation to conduct our activities in a responsible manner when interacting with the environment, individuals, and society as a whole. If we fail to fulfill our due diligence, it can lead to non-financial risks. This may include risks arising from our own business activities (inside-out risks), such as negative impacts on people or the environment, as well as events and developments that have a negative impact on our business performance (outside-in risks).

As part of our Group-wide integrated management system, we therefore regularly evaluate which non-financial risks are relevant to Beiersdorf and where we need to actively manage these. Risks are considered material if they have a high probability of occurrence based on predefined thresholds and if they are expected to have a severe negative impact on material non-financial topics. During the year under review, Beiersdorf introduced a new Group-wide risk management tool that enables non-financial risks to be assessed more thoroughly than before. In this way, we intend to emphasize internally how important the issues identified as material are to our company and at the same time meet the increasingly demanding requirements for managing and reporting sustainability risks. In 2023, the risk of incorrectly disposed plastic packaging was again assessed as material within the meaning of Germany’s CSR Directive Implementation Act (CSR-RUG). Use of plastic packaging can lead to environmental pollution if it is not disposed of properly or if the disposal infrastructure in the country of sale is inadequate. We counter this risk through our circular economy strategy, which involves reducing the use of fossil-based plastics (see “Circular economy” section).