Before a sustainability report can be drawn up in accordance with the CSRD, a mandatory dual materiality analysis must be carried out. This analysis defines impacts (inside-out perspective) as well as risks and opportunities (outside-in perspective) across the thematic areas of environment, social issues and corporate governance – also referred to here as IROs (Impacts, Risks, Opportunities). The material topics form the basis for the sustainability strategy and determine which topics are covered in the sustainability report.
Workshop as a foundation
The basis for the dual materiality analysis is a workshop lasting several days involving the client and RYZE’s sustainability experts. During this workshop, the business model is examined, stakeholders are identified and the potentially material IROs are recorded. With the support of our sustainability team, these are then systematically assessed against the requirements of the sustainability standard.
Involvement of external stakeholders
In addition to internal stakeholders, we ensure that external stakeholders are also consulted following the workshop to verify the relevance of the material issues identified. This is the only way to produce a robust shortlist of issues for subsequent sustainability communication.
Stakeholder analysis
Clients receive an identification of their relevant stakeholder groups, as well as a meaningful assessment and classification of these groups’ expectations of their organisation.
Materiality analysis
Through materiality analysis – also known as a materiality assessment – we help our clients identify the ESG issues that are most important to their business.
What customers receive
- Clear mapping of the target groups
- Documentation of the materiality analysis, including a summary in the form of a PowerPoint presentation
- Table of material impacts, risks and opportunities (IROs), categorised by environmental, social and governance factors
FOLBB Group
For the FOLBB Group, we conceived, designed and produced the 2023 Sustainability Report from scratch, thereby producing the first report in accordance with the new ESRS standards (ESRS = European Sustainability Reporting Standards). The project also served as a strategic trial run for future mandatory reporting.
The dual materiality analysis is a key component of sustainability reporting in accordance with the ESRS. It combines the ‘inside-out’ perspective – a company’s impact on people and the environment – with the ‘outside-in’ perspective, which examines the financial risks and opportunities arising from sustainability issues. It is based on a structured stakeholder analysis, which identifies the relevant stakeholders and their expectations.
RYZE Digital carries out the materiality analysis for companies in accordance with the requirements of the European Sustainability Reporting Standards (ESRS). This involves identifying the material Impacts, Risks and Opportunities (IROs) in the areas of environment, social issues and corporate governance.
The results of this materiality analysis – also known as a materiality assessment – form the basis for the sustainability strategy and ESRS reporting.