1DOUBLE MATERIALITY ASSESSMENT
2RISK MITIGATION STRATEGY (MANAGE)
1DOUBLE MATERIALITY ASSESSMENT
PHASE 1 – IDENTIFY
- Understand your company’s operations and value chain while defining your key stakeholders
- Generate an extensive list of ESG matters, each with its own impacts, risks and opportunities (IROs), leveraging industry benchmarks and regulatory frameworks
- Rate each IRO using financial materiality criteria (magnitude and likelihood) and impact materiality criteria (severity and likelihood)
- Validate these findings by gathering relevant input from stakeholders
- Create a bespoke double materiality matrix to map critical ESG priorities, ensuring alignment with the business’s strategic goals
2RISK MITIGATION STRATEGY (MANAGE)
PHASE 2 – MANAGE
- Understand your company’s current business risk assessment methodology
- Conduct a qualitative evaluation to assess the likelihood, severity and relevance of risks to stakeholders
- Review the current risk mitigation strategy for each identified risk and determine an appropriate mitigation pathway: Avoid, Reduce, Transfer, or Accept
- Develop a structured risk management and mitigation plan, incorporating policies or initiatives to address key impacts
- Establish processes to track and report progress on material topics
VALUE TO YOUR BUSINESS
Enable your business to effectively prioritise efforts and allocate resources by adopting a forward-looking strategy that proactively manages risks, aligns sustainability initiatives with strategic objectives, and builds organisational resilience.