Materiality Matrix
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.
Design and accelerate your company's sustainability transformation
Winning Sustainability Strategies Online Program: 6 Mar - 9 Apr 2023
The IMD Winning Sustainability Strategies Online Program is a “how-to” guide that offers a very pragmatic take on how to integrate sustainability into your corporate strategy – while ensuring it has a strong business case. The program is aimed at business executives, strategy practitioners, and sustainability professionals, who are looking to harness sustainability innovation and its strategic implications. Facilitated by the authors Jan van der Kaaij, Managing Partner of Finch & Beak, and IMD professor Benoit Leleux, this edition starts on 6 March 2023 and registration closes on 20 February 2023.
Exchanging, Learning and Networking on ESG Ratings & Rankings
In order to facilitate peer networking, grow competence on ESG ratings and accelerate your ESG scores, SLR Consulting is launching its ESG Ratings Expert Network: a virtual, global platform for ESG professionals. The network is open for senior managers actively working on their company’s ESG performance, with roles in for example sustainability/ESG, investor relations, finance, or corporate affairs/communication within stock-market listed companies or large family businesses.
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.
Design and accelerate your company's sustainability transformation
Winning Sustainability Strategies Online Program: 7 Nov - 11 Dec 2022
The IMD Winning Sustainability Strategies Online Program is a “how-to” guide that offers a very pragmatic take on how to integrate sustainability in your corporate strategy – while ensuring it has a strong business case. The program is aimed at business executives, strategy practitioners and sustainability professionals, who are looking to harness sustainability innovation and its strategic implications. Facilitated by the authors Jan van der Kaaij, Managing Partner of Finch & Beak, and IMD professor Benoit Leleux, this edition starts on 7 November 2022 and registration closes 31 October 2022.
New ESRS Framework: The Impact on Sustainability Reporting in Europe
Earlier this year, the European Financial Reporting Advisory Group (EFRAG) published the exposure drafts for the new European Sustainability Reporting Standards (ESRS). The development of this framework was requested by the European Commission in response to the need to have a single European-wide framework aligned with the requirements of the new CSRD directive. The draft version of the framework, which was under public consultation by various stakeholders until the 8th of August 2022, highlights which new non-financial reporting features the European Commission wants to advocate for. Most notably, that of double materiality to determine which sustainability priorities are set to become mandatory, and the reporting sustainability indicators that will have to include the entire value chain and be considered from a short-, medium-, and long-term perspective.
Double Materiality: 3 Tips for a Practical Approach
Regulators and investors are increasingly expecting organizations to conduct their materiality assessments following the principle of double materiality. However, understanding exactly what double materiality entails, and conducting this assessment in a successful manner comes with its challenges. This article outlines the concept of double materiality in brief and provides three tips for a successful double materiality assessment with practical guidance as part of a downloadable checklist.
Design and accelerate your company's sustainability transformation
