ESG and Double Materiality
Assessing what areas are materially important to an organisation helps inform: the ESG strategy; the initiatives to be developed; and gives a focus for ESG reporting. Our tailored approach involves several steps, to allow the approach to be “tested” with a range of key stakeholders. The results of our materiality assessments and engagement with stakeholders has enabled organisations to reorient their time, resources and investments to create value in line with their business model and purpose.
ESG Materiality covers environmental, social, and governance elements, as well as economic matters and allows you to identify key areas that have a direct or indirect impact on your organisation. An ESG materiality assessment identifies these “non-financial” areas which have an impact on your business in relation to their “Level of Business Impact” and their “Level of interest to Stakeholders”.
Our approach to undertake an ESG Materiality assessment is aligned with the Global Reporting Initiative (GRI) guidelines for sustainability reporting.
Asesoria has been conducting materiality assessments for over 10 years helping businesses to understand how ESG topics have an impact on their business and stakeholders, developing our approach alongside new guidance and regulations. With the new Corporate Sustainability Reporting Directive (CSRD) legislation we have further developed our approach to include double materiality which will be mandatory for many from 2024.
The European Sustainability Reporting Standards (ESRS), under the CSRD, define Double Materiality as an assessment of both how a business is impacted by ESG issues as well as how the business’ activities impact both the environment and society. This is now commonly being referred to as an ‘outside-in’ and ‘inside-out’ approach. With the CSRD around the corner, Double Materiality is something businesses will need to take note of as it is a mandatory requirement of the new legislation.
For more information please email projects@asesoria-group.com
