Double Materiality

Double materiality expects companies not only to look at the impact on their organization, in other words the contribution to the bottom line, but also expects organizations to look at their impact on issues that are deemed material. Once combined, these outside-in and inside-out views guarantee that companies describe and act on material issues that matter most from both a financial, as well as a societal point of view.
 
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Tackling the Challenges in Visualizing Double Materiality

As of 2023, the EU Commission requires companies to apply the concept of “Double Materiality” as part of its new Corporate Sustainability Reporting Directive (CSRD). Companies that have not already done this, need to develop a sharp view on both short-term impacts as well as risks further on the horizon in order to guide their business and build resilience for climate change and other factors. In addition, the Global Reporting Initiative (GRI) announced updates towards its Standards in which also the process towards a materiality assessment was actively addressed. One of the main questions that therefore arises is: how do you visualize your materiality matrix in line with the double materiality principle?
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How to Connect ESG Metrics to Your Executives' Remuneration

Be it under the pressure of stakeholders, or to showcase commitment to sustainable business practices, an increasing number of companies have linked Economic, Social and Governance (ESG) metrics to their executive remuneration. While this is a valuable strategy to accelerate sustainability performance, doing so may present several challenges in the process from decision making to implementation. This article outlines the considerations to account for in the process and provides three tips for a successful integration of ESG targets in executive remuneration.
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Activating Materiality to Accelerate ESG Performance

How can a materiality assessment be used to effectively accelerate a company’s sustainability performance? On September 23rd, Finch & Beak organized a webinar focused on materiality activation: transforming the materiality assessment from a reporting tool to the steppingstone for activation of company’s sustainability program. As an illustration, Rebecca Dunn, Head of Sustainability at Spectris presented how materiality accelerated the company’s sustainability strategy. Bas Nuijten, Senior Consultant and Team Leader at Finch & Beak, followed to explain how to integrate the double materiality principle and how to overcome challenges in materiality activation, and shared three tips for a successful activation of materiality.
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Leveraging Double Materiality to Identify Emerging ESG Risks

If there is one thing that the COVID-19 pandemic has demonstrated, it is that society can face major challenges, virtually overnight. Companies need to have a sharp view on both short-term impacts and risks further on the horizon in order to steer their business and build resilience to deal with change. Capturing emerging risks in the ESG approach is therefore essential. Additionally, as of 2023, the EU Commission requires companies to apply the concept of “Double Materiality” as part of its new Corporate Sustainability Reporting Directive (CSRD). One of the main questions that therefore arises is: how do you ensure your materiality assessment covers these new perspectives on materiality?
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A New Way of Sustainability Reporting: CSRD

With the aim of improving the widespread availability and use of sustainability information across different stakeholder groups, the EU Commission announced its proposal for a Corporate Sustainability Reporting Directive (CSRD). The proposed Directive for the coming years will enhance the rules laid down within the Non-Financial Reporting Disclosure (NFRD), as it will extensively widen the scope of companies applicable to these new reporting legislations; from roughly 11,700 to approximately 49,000. Above the increase in the level of detail being required, companies will also have to verify the information being reported through an external assurer, amongst other decrees. As companies are expected to adopt the first set of new standards by 2024, it is crucial to fully understand the implications and their readiness ahead of the implementation date.
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Re-Fresh Materiality Assessment: Lean, Compliant, and Driving Value & Impact

Finch & Beak's approach to materiality matches the key requirements according to frameworks like the GRI Standards and CSRD, and most importantly: it is geared towards action. Not just for reporting purposes, but providing base materials for both internal and external engagement and advancing your company’s sustainability strategy. Industry-specific emerging issues are incorporated, and the process engages the most important stakeholder groups in your organization while connecting to business strategy and enterprise risk management. The turn-key, independent execution of the project is always adapted to the specific needs to the client, and asks for limited internal resources for facilitation and feedback.

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