Materiality process
Wesfarmers conducts an annual sustainability materiality assessment to identify and prioritise significant sustainability topics. This process is informed by regular engagement with investors, team members, customers and with our communities and is intended to assist us to understand evolving expectations and emerging trends.
Wesfarmers' material topics are prepared in accordance with the Global Reporting Initiative (GRI). We monitor issues to understand shifts in relevance, identify emerging issues and assess stakeholder expectations.
For the 2025 financial year, the Group adopted a streamlined approach to the materiality assessment in preparation for the implementation of the Australian Sustainability Reporting Standards (ASRS). This transitional approach supports the development of a new financial materiality process in alignment with ASRS S2 that will underpin future reporting.
Divisional materiality process
Wesfarmers is a diverse conglomerate with seven divisions and operations spanning a broad range of industry sectors Wesfarmers’ diverse businesses today span: home improvement, outdoor living products and supply of building materials; general merchandise and apparel; office and technology products; retailing and provision of health, beauty and wellness products and services; management of a retail subscription program and shared data asset; wholesale distribution of pharmaceutical goods; manufacturing and distribution of chemicals and fertilisers; gas processing; natural gas retailing; participation in an integrated lithium joint venture, including operation of a mine and concentrator, and development of a refinery; industrial and safety product distribution; and management of the Group’s investments.
Each division faces unique challenges and conducts its own annual materiality assessment by gathering feedback and prioritising its most important sustainability topics.
Wesfarmers consolidates divisional materiality assessments by evaluating the frequency with which specific issues are identified as material across divisions. Each issue is assigned a score based on how often it is recognised, and an average score is calculated for each material topic. These scores serve as key inputs into the Group-level materiality assessment, ensuring a consistent and data-informed approach to identifying priority sustainability topics.
Group materiality assessment process
1. Gather inputs to develop a list of issues
Wesfarmers’ materiality assessment methodology is based on research and engagement. We source information on issues that may be relevant or impact the Group or our divisions. Internal stakeholder feedback is sourced via divisional materiality assessments. Externally, we collect feedback from investor engagement and analyst research.
2. Prioritise topics
Identified topics are prioritised according to their potential impacts on the economy, environment, and people, including impacts on human rights, as well as Wesfarmers’ ability to influence the topic. In 2025, a streamlined methodology was adopted to improve efficiency while maintaining GRI principles. This approach focused on leveraging the most influential stakeholder groups and existing divisional insights to identify and prioritise material sustainability topics. Each topic is evaluated against a set of defined criteria, and a weighted average is applied to rank the identified topics.
In FY25, Wesfarmers defined material topics as those ranking in the top 10 based on the weighted scoring methodology. Topics below this threshold are considered non-material and are not included in the FY25 GRI Content Index.
3. Validate
Topics are reviewed during and at the end of the process. Independent sources of information, including the UN Sustainable Development Goals and World Economic Forums Global Risks Report, are used to validate identified topics.
4. External review
A third party reviews our materiality assessment methodology and the topics which we have prioritised. Our materiality process was carried out in accordance with the GRI Sustainability Reporting Standards. Ernst & Young were engaged to undertake a limited assurance engagement on Wesfarmers materiality assessment in FY25.
5. Wesfarmers Board approval
The materiality assessment report is reviewed and presented for discussion and consideration by the Wesfarmers Audit and Risk Committee, then the Wesfarmers Board.
In the 2025 financial year, there was strong alignment on the Group’s material sustainability topics, consistent with recent years. Greenhouse gas emissions (including climate, decarbonisation and energy) remain a significant topic, reflecting ongoing community and regulatory focus. In parallel, data and cyber security have become increasingly material, driven by the growing adoption of artificial intelligence. Across our businesses, the safety, health and wellbeing of our team members remains our highest priority. We maintain our focus on ethical sourcing and the human rights of workers in our supply chains.
New topics for FY25 were:
Procurement Practices and Supply Chain (Responsible Sourcing)
This topic is material because of the complexity and depth of the divisions’ supply chains and focus on responsible sourcing. The Group is committed to fair supplier engagement, including support for Indigenous-owned businesses, and responsible procurement practices.
Product labelling
Product labelling has emerged as a distinct material topic, evolving from the broader product safety focus. This reflects Wesfarmers’ commitment to providing clear, accurate and compliant product information.
Energy
Energy use has long been monitored. Wesfarmers retail divisions adopted renewable electricity targets, and we have reported on their progress against those targets. Given its close linkage to greenhouse gas emissions, energy is integrated into the broader Greenhouse gas emissions topic.
The following topics were determined to be material and are reported in accordance with GRI 3-3. Each topic is included in the FY25 GRI Content Index. Wesfarmers material sustainability topics were:
- Greenhouse gas emissions (including climate, decarbonisation and energy)
- Governance and corporate ethics
- Team member health and safety
- People development, diversity and inclusion
- Advancing reconciliation
- Ethical sourcing and human rights
- Procurement practices and supply chain
- Product labelling1
- Data and cyber security
- Energy2
Note: Only topics meeting the materiality threshold are included in the GRI Content Index and are accompanied by a GRI 3-3 disclosure. No additional material topics have been identified beyond those listed.
1 Product labelling is disclosed under Product packaging in the 2025 Annual Report. Product labelling remains as the title in the FY25 GRI Content Index.
2 Energy is disclosed as part of the broader Greenhouse Gas Emissions topic in both the 2025 Annual Report and FY25 GRI Content Index.
GRI 2-2, GRI 2-14, GRI 3-1, GRI: 3-2, GRI: 3-3