Business Compliance — CSRD — Building a double materiality matrix
Use Case
Framework for compliance with the CSRD
The Corporate Sustainability Reporting Directive (CSRD) makes mandatory a regulatory framework on companies for the disclosure of non-financial information. The release of the new sustainability report by 2025 requires a perfect alignment between CSR strategy and the assessment of non-financial issues.
Valthena supports several clients already subject to the Non-Financial Reporting Directive (DPEF in French) and have expressed a desire to promptly initiate a scoping phase for compliance with the Corporate Sustainability Reporting Directive (CSRD).
The objective was to raise awareness among the senior management and key departments about the obligations introduced by the Corporate Sustainability Reporting Directive (CSRD), assess the materiality of issues at the level of ESRS (positive and negative impacts, risks and opportunities / stakeholder engagement / expert input analysis), produce the double materiality matrix, identify data points, and determine the action plan for 2024.
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Approach
The project was structured around several phases:
Awareness on CSRD requirements
- Training of key internal stakeholders on CSRD requirements
Preparation of work
- Define scoring scales and materiality assessment for impact and financial materiality
- Identify internal and external stakeholders
- Produce consultation questionnaires for stakeholders
Define material sustainability topics
- Identify positive/negative impacts, risks, and opportunities
- Collect stakeholder engagement (questionnaire)
- Expert input analysis (expert consultation / literature)
- Production of the double materiality matrix
- Strategic review with senior management of material topics
- Alignment with the company’s CSR strategy
- Gap analysis and definition of an action plan
Identify obligations (‘disclosure requirements’ and ‘data points’) resulting from material topcis
Gaps analysis
Define 2024 roadmap.
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Results
- Awareness and involvement of business units and support functions on non-financial issues
- Engagement of stakeholders
- Assessment of material topics and alignment with CSR strategy
- Definition of policy, ambition, and action plan for each material topic
- Identification of data to be collected
- 15-month roadmap