The materiality analysis: Key to efficient ESRS implementation and a focused sustainability strategy

The materiality analysis: Key to efficient ESRS implementation and a focused sustainability strategy

The CSRD and the ESRS present companies with new challenges in the area of ​​sustainability reporting. The aim behind it: to make the sustainability of companies in the EU much more transparent and to avoid greenwashing. However, CSRD and ESRS mean additional effort for the companies themselves. It is therefore important to prepare now for the coming changes.

Determine the current status with a materiality analysis

From January 1, 2025, all companies with more than 250 employees must prepare a sustainability report. What has already applied to large corporations in the EU since 2024 will significantly affect several companies from next year. By 2026, all capital market-oriented SMEs will also have to adhere to the CSRD and the ESRS. So it's high time for companies to turn to experts like  neoverv.com/esrs-materiality-analysisobtain more detailed information and develop an appropriate strategy. In the first step of the materiality analysis, the stakeholders must be identified.

The sustainability report is important for the following stakeholders, among others:

• Investoren
• Kunden
• Regulierungsbehörden
• NGOs
• Mitarbeiter
• Lieferanten
• Banken

In the next step, ESG criteria can then be defined based on the identified target group. The three pillars Environmental, Health and Social play an important role in the sustainability report. In this way, companies should be able to relate sustainability to more than just environmental protection. Only in the third state is the current state represented using a materiality matrix. This matrix then serves as the basis for prioritizing the sustainability strategy.

This is how important the ongoing materiality analysis is for sustainability reporting

The CSRD report will become a mandatory part of the economic management report for many companies. In order to keep the effort as low as possible towards the end of the operating year, the ongoing materiality analysis is of crucial importance. It provides information on various data and trends within the company.

• Outside-In-Perspektive: Diese betrachtet, wie externe ESG-Kriterien den Geschäftsverlauf, das Ergebnis oder die allgemeine Lage des Unternehmens beeinflussen.

• Inside-Out-Perspektive: Diese untersucht, wie die Geschäftstätigkeit und Produkte des Unternehmens die Umwelt und Gesellschaft beeinflussen.

This proactive approach allows us to react flexibly to changing conditions and further optimize sustainability. In total, the materiality analysis must cover twelve ESRS topics. If this is not the case, the sustainability report can be classified as inadmissible. It is also important to actively involve stakeholders in the analysis. For comprehensive sustainability reporting, the so-called double materiality must also be present.