Basics

inputs
- water consumption
- working conditions
- data protection
- child labor
- microplastics
outputs
- materiality list company needs to focus on
  - Double Materiality
not done every year
- business model does not change that quickly
- usually every 2 years

How To

Impacts, Risks, Opportunities
GROSS perspective
- analyse risks despite of interventions/measures
- e.g. flooding risk does not decrease bc I took measures for when a flooding happends
breakdown by
- country, location or asset, subsidiary, sector
sustainability matters
- Different standards
  - E1, E2, E3 and their sub-points
  - e.g. E2 pollution - first 4 might be material, last 4 might not be material
- also look at data points
top-down vs bottom-up
- parent first, subsidiary later (top-down)
- subsidiary later, parent first (bottom-up)
- parent and subsidiary are different
  - which materalities effect either group/parent or just individual subsidiaries
- e.g. holding company with many different companies/sectors

how to ask/involve all/most stakeholders?
survey employees, consumers, banks, suppliers
- lot’s of surveys currently (Nov 2024)
interviews/group discussions
- with most important customers/suppliers
identify IROs based on that
integrate and prioritize matters
benefits: better Strategic Foresight and Scenario Planning capabilities
- better understanding of stakeholders and therefore better decisions
- not purely better for environment, but also for company itself
- also cheaper loans (Hummel/Jobst 2024 L3 p8)

score/rank IROs by stakeholder effect
stakeholder engagement
define thresholds
- which topics should you report on
  - can be absolute or relative
    - i.e. top 10 issues is critical vs everything above 100k risk is critical
- e.g. minimal, informative, important, significant, critical