Eficode is conducting a double materiality analysis
If you’re involved in your organization’s sustainability strategy or corporate responsibility program, you may be familiar with the term ”double materiality analysis.” If not, let's start with a quick explanation.
A materiality analysis is a process in which an organization conducts an analysis to see which topics are material, i.e., important to them. This process includes input from internal and external stakeholders and looking at similar companies within the industry.
The final product is a report summarizing the most important risks and opportunities in the environment, social, and governance (ESG) aspects of the organization.
This analysis is done using two lenses: The effects of the organization on ESG topics (lens 1) and the effects of ESG topics on the organization (lens 2). This double approach is called double materiality, and the two lenses are called impact materiality and financial materiality.
Impact materiality: The effect of the organization on ESG topics, direct and indirect.
Financial materiality: The effect of ESG topics on the financial situation of Eficode.
Why are we doing this?
On the 21st of April 2021, the EU Commission announced the adoption of the Corporate Sustainability Reporting Directive (CSRD) in line with the commitment made under the European Green Deal. The CSRD substantially increases reporting requirements on the companies falling within its scope in an effort to expand the sustainability information for users. The double materiality assessment is a key element in CSRD reporting and determines to a large extent, the scope.
Adopting double materiality in business is not just a matter of regulatory compliance but a strategy that drives meaningful and positive change throughout an organization. Some of the benefits of conducting a materiality analysis include:
- Enrichment of the company vision, driving a more holistic approach.
- Identification and prioritization of issues that can have a significant impact on both sustainability and financial performance. Avoiding short-termism and strategic short-sightedness by better preparing for emerging risks and opportunities.
- A deeper understanding of how operations, environmental, and social issues are interconnected enables organizations to anticipate changes in the marketplace and proactively adapt to the expectations of stakeholders.
- Increased transparency and accountability, strengthening trust with stakeholders.
By actively considering the environmental and social impact of our organization, we can attempt to contribute to the creation of a more sustainable and just environment.
How you can get involved
In order to understand our impact, we need to understand the perception of our stakeholders. To do this, we are inviting all stakeholders, internal and external, to complete our materiality analysis survey.
The survey asks stakeholders to select what ESG topics they perceive to be relevant, before exploring the level of importance of each topic, always through the two lenses of impact and financial materiality.
If you are an Eficode stakeholder, we invite you to have your say by completing the materiality analysis survey.
Why should you complete the survey?
As an Eficode stakeholder, you will have some sort of interest in either the impact Eficode has on ESG topics, how ESG topics affect Eficode's financial situation or both! This is your chance to share your perception of those impacts.
Without your engagement, we cannot effectively address your expectations as a stakeholder. Understanding what’s important to you helps us prioritize, provide value, reduce pain points, and optimize your experience as a stakeholder.
One of our core values here at Eficode is to “learn every day.” Continuous learning is our source of innovation—we face the world with curiosity and courage. We really are curious to learn what you think so that we can navigate the next steps forward with courage and comfort, knowing that we are doing it together.
What happens after you complete the survey?
Alongside the survey, we are also conducting qualitative research through interviews and focus groups, which, combined with the results from the survey, our desktop research, and industry benchmarking, will provide us with valuable data for our analysis.
From that data, we will identify, quantify, and filter risks and opportunities, integrating them into our strategy, creating risk mitigation plans, and setting actions for material opportunities. The cumulative outcomes of the materiality analysis will be captured in a report that will be shared with all stakeholders.
Is your organization embarking on its own materiality analysis journey? Invite us to participate by connecting with jade.webster@eficode.com. Let's shape the future of responsible business together.
Published: Mar 25, 2024
