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.
April 13, 2023
ESG Acceleration Webinar: Strengthening Your Double Materiality Approach
This webinar presents a novel approach to conducting a double materiality assessment. While the Corporate Sustainability Reporting Directive (CSRD) requires companies to conduct a double materiality assessment to identify and disclose their most significant ESG impacts, the double materiality approach also has the potential to bring strategic value of the process. By incorporating a strategic lens into the assessment, companies are able to identify opportunities to enhance their sustainability performance, strengthen stakeholder relationships, and ultimately drive business growth. The webinar will pay special attention to the challenge of assessing a company’s societal impact.
Updating from Single Materiality to Double Materiality
In today's rapidly evolving business landscape, companies face increasing pressure to incorporate ESG considerations into their businesses. The Corporate Sustainability Reporting Directive (CSRD) requires companies to conduct a double materiality assessment to identify and disclose their most significant ESG impacts. While complying with these regulations is essential, companies can also leverage the outcomes of the double materiality assessment process to gain strategic benefits. This article proposes a novel approach to conducting a double materiality assessment, which goes beyond compliance and highlights the strategic value of the process. By incorporating a strategic lens into the assessment, companies are able to identify opportunities to enhance their sustainability performance, strengthen stakeholder relationships, and ultimately drive business growth.
Main Webinar Learnings to Get Ready for the CSA 2023
On 7th of March 2023, Finch & Beak conducted a webinar summarizing the main trends and topics discussed during the in-person CSA Expert Training event held in Amsterdam the week prior. This article gives a brief summary of the webinar focusing on the new timeline and methodology changes for 2023 and best practices related to climate strategy, supply chain management and biodiversity.
Responding to COP27’s Main Takeaways
The recent COP27 once again highlighted urgent topics that need global attention, results that were achieved (and unfortunately also those that were not), and provided enough challenges and considerations for organizations and countries to deliberate forthcoming change. A new agenda topic is that of loss and damage which unified countries in agreement about establishing a fund for assisting and supporting developing countries. In this article, we briefly elaborate on some of the main topics discussed, highlight takeaways of the event that are worth considering as part of an organization’s sustainability agenda, and specifically, consider how these challenges can be addressed through the activation of material ESG topics. The downloadable checklist for materiality activation is a helpful tool to support your organization in starting the process.
No Time to Waste, the Only Way is Forward
Although yielding many positive outcomes, unfortunately, this year’s COP27 proved that the clock speed with official negotiations is much slower than that by the actors of the real economy where the discussion is about speeding up the transformations and getting finances to flow. Different this year from previous conferences was that there is consensus that we can’t afford any other way than a way forward, towards 1.5°C. This article is a personal account by Peter Bakker, President and CEO of the World Business Council for Sustainable Development (WBCSD) summarizing the key takeaways and elaborating on why collaboration and accountability are the way to get from commitment to action.
Double Materiality as the Foundation for Sustainability Strategy
For organizations to remain competitive, embedding ESG in their business strategies is imperative. As a first step in strategy-making usually entails analyzing and understanding the organization’s inside and outside contexts, a double materiality assessment is a great tool to help organizations consider the impacts of both of these. On top of the assessment being foundational for integrating ESG in organizational strategies, it will be required as part of the EU approved Corporate Sustainability Reporting Directive (CSRD). In this article, we discuss the importance of considering materiality as a starting point for your strategy, elaborate on other strategy building blocks, and provide tips and practical guidance for a successful double materiality assessment.
Understanding & Preparing for the CSRD
On 28 November 2022, the European Council approved the proposed Corporate Sustainability Reporting Directive (CSRD), which aims to revolutionize sustainable reporting and parallel it with financial reporting. The Directive replaces the existing Non-Financial Reporting Directive (NFRD) and will substantially increase reporting requirements for companies falling within its scope. This article addresses uncertainties about scope, timelines, and implications for business by providing clarification about the CSRD’s requirements as well as giving practical recommendations to prepare for compliance in 2023 and beyond.
Engaging Stakeholders to Accelerate ESG Performance
Engaging stakeholders is essential for companies to build a strong strategy, meet ESG (environmental, social, and governance) commitments and scale their impact. However, successfully collaborating with stakeholders to achieve these outcomes brings other challenges. In this article, we outline the case for, and provide three tips on stakeholder engagement to accelerate ESG performance. More specifically, we consider how materiality assessments can facilitate and enhance the process of stakeholder engagement. For more practical insights, the download provides three tips on how companies can engage their stakeholders while conducting their materiality assessment.
Materiality Activation in the European Fashion Industry
As the need for increased focus on human rights issues and responsible supply chain management grows across industries, the upcoming EU Directive on corporate sustainable due diligence, published in 2022, will require organizations to provide consumers with more transparency when purchasing goods. This article elaborates on the implications for European companies, considers the environmental and social concerns that the fashion industry is facing, highlights inspiring progress by sustainable pioneers in the sector and then makes the case for human rights and supply chain management as foundational materiality topics and crucial elements for ESG acceleration. The downloadable checklist for materiality activation gives three tips to help your organization determine material issues.
