Materiality and Stakeholder Engagement

Conducting a materiality assessment is essential for enabling OR Royalties to identify and prioritize significant sustainability issues for its stakeholders and business. Understanding key sustainability concerns helps us enhance transparency and align our ESG Strategy and disclosure with stakeholder priorities, in order to promote responsible corporate practices.

 

In 2024, with the support of Deloitte, an external consultant, we conducted a refresh of our materiality assessment in relation to our ESG topics to prepare for potential upcoming mandatory ESG disclosure requirements and integrate stakeholder insights into the sustainability issues that matter most to OR Royalties. The goal of the refresh was to build on our 2022 materiality assessment with the inclusion of additional stakeholders to better reflect internal and external perspectives and evolving global practices. The assessment was inspired by the double materiality definition included in the European Union’s Corporate Sustainability Reporting Directive’s (“CSRD”) and the European Sustainability Reporting Standards (“ESRS”). The scope was limited to assessing materiality at the topic level, rather than assessing the impacts, risks and opportunities (“IRO”) level. This enabled a streamlined approach for the refresh year and sets up OR Royalties for future assessment at the IRO level.

The approach used was based on a robust methodology that emphasized a systematic and stakeholder-inclusive process and aligned with industry practices and ESG disclosure standards, all while being tailored to OR Royalties’ unique business model. The process began with a review of material ESG topics identified by OR Royalties’ previous materiality assessment and those identified by key industry peers and by industry disclosure standards. This list served as the basis for extensive stakeholder engagement, where we gathered valuable input from a range of internal and external groups.