Climate change, political conflicts, energy crisis: The global challenges of our time are also putting companies under pressure to act. They must react to entirely new sustainability risks, transform themselves according to changed parameters, and generally become more sustainable. This requires a willingness to change. At the same time, business activities aligned with sustainability and the assumption of social responsibility offer opportunities for economic growth and long-term entrepreneurial success. The basis for this is a tailored sustainability strategy, built upon a thematic focus according to the principle of double materiality.

A core element of strategy development and the basis for reporting according to (CSRD/ESRS) is the identification of the greatest levers and risks. This is done according to the principle of double materiality. This means considering not only the company's impact on the environment and society (inside-out) but also the impact of sustainability topics on the company itself (outside-in). In a structured process, we conduct the materiality analysis with you according to CSRD/ESRS, identifying all material IROs (Impacts, Risks, and Opportunities). Together, we quantitatively prioritize impacts based on severity (scale, scope, irremediability) and likelihood of occurrence, as well as the magnitude of the effect and likelihood of occurrence for financial opportunities and risks.

A double materiality analysis (also called materiality assessment) offers you far-reaching advantages:

To better understand the complex interactions between economy, environment, and society, the double materiality analysis, in accordance with ESRS requirements, provides a process and framework. Thus, through the outside-in perspective, all risks and opportunities relevant to the company that sustainability factors have on the company are identified. Conversely, the inside-out perspective describes the positive and negative impacts of the company on sustainability aspects. This identification of IROs strengthens the company's resilience, helps to leverage innovation potential, and optimize processes. The double materiality analysis enables a focus and subsequent integration of sustainability aspects into the corporate strategy and management. This ensures that sustainability goals align with business goals and that synergies are utilized. The analysis also leads to a better understanding of stakeholder expectations and concerns and enables constructive dialogue.

We support companies in developing a tailored sustainability strategy. Particularly important in this process is the development of "SMART" (Specific, Measurable, Achievable, Relevant, and Time-bound) strategic and operational goals, and the creation of effective measures to achieve these goals. Equally necessary is effective data management for steering and monitoring goal achievement and for reporting. A strategic mission statement serves as guidance and demonstrates the ambition of how a company intends to contribute to sustainable development. We always keep in mind the fulfillment of regulatory requirements for reporting and disclosure obligations.

To ensure that corporate responsibility becomes an integral part of all business areas, we develop the foundation for effective sustainability management within the company through sustainability governance. This involves defining responsibilities, processes, and the composition of the sustainability team and other committees, so that strategic guidelines can have an impact.

A strategically oriented stakeholder management enables companies to identify the needs and expectations of relevant interest groups, integrate them into important decision-making processes, and manage risks. Good strategies always consider the environment in which they are intended to operate. In the context of the CSRD, it also makes strategic sense to understand diverse stakeholder perspectives and involve them throughout the entire strategy and reporting process. We support you with our expertise in the necessary identification and evaluation of different stakeholder groups, as well as in choosing suitable formats for input and dialogue.

For CSRD readiness, we guide you through a proven process that we always adapt to the individual circumstances of your company. The regulations on disclosure obligations provide the guardrails. Our approach includes: identifying material topics through a double materiality analysis, building a focused sustainability roadmap with goals tailored to the company, an impact assessment via KPIs and management approaches, and modeling governance. Additionally, we establish content and data management systems to complement existing data architectures.

Efficiency and effectiveness in implementing regulations arise because we connect regulatory requirements with existing measures and strategic approaches, and with the specifics of your corporate culture and business model. This not only saves resources but also achieves a result that fits your company and provides the basis for an internal and external sustainability positioning.

What is a holistic sustainability strategy?

A good sustainability strategy is one that goes hand-in-hand with the corporate strategy and enables the company to operate even more sustainably in its core business.

What is double materiality?

The concept of double materiality (also referred to as dual materiality) incorporates two perspectives into the assessment of sustainability topics: the inside-out perspective and the outside-in perspective. This means: companies must, on the one hand, determine what impact their business activities have or can have on people and the environment. This dimension is also called Impact Materiality. On the other hand, it assesses what opportunities and risks the various sustainability topics pose for the company's financial situation and the future viability of the business model (Financial Materiality).

What is the purpose of KPIs?

Non-financial KPIs (Key Performance Indicators) are metrics that serve as control variables to monitor the achievement of the goals set in the sustainability strategy. They make a company's sustainability commitment measurable.

What distinguishes an ESG strategy from a sustainability strategy?

An ESG strategy, in line with the capital market's understanding of sustainability, focuses on the financial materiality of non-financial topics in the areas of Environment, Social, and Governance (ESG). The main target groups for communicating relevant key figures are investors, analysts, and financial market participants.