DE&I: 5 small steps for big changes
Corporate DE&I is not simply a question of fairness. Implemented successfully, it pays off for both the company and society in general. Here’s how it’s done. ...
Brain Circuits
How to get more mileage from your double materiality assessments
Double materiality assessments are a key element of ESG reporting that include a firm’s impact materiality (business activities that might impact society), as well as its financial materiality (sustainability issues that might impact results). But how can firms capture the full potential value of this broad analysis of sustainability issues?
1 Define material issues first
To move beyond CSRD-compliant ESG reporting, consider potential actionability when identifying material issues in the research phase.
2 Identify focus areas
To help envision how to take actions that improve the sustainability impact, zone in on the following:
Transformative priorities
Material topics that are essential to build long-term value and maintain a competitive advantage.
- Sustainability enablers
Material topics that put you in the right position to address the core focus areas.
- Continuous improvement areas
Material topics that should be actively monitored and managed to meet compliance standards and mitigate risk.
3 Keep up with evolving materiality issues
As the business develops, practical sustainability concerns may shift, so materiality issues will change over time. This means materiality is an ongoing process that requires constant attention, requiring updates to implementation plans, materiality assessments, strategies, and reporting – and, of course, ongoing dialogue with all stakeholders.
Key takeaway
Transformation is impossible when remaining silent, so it’s critical to walk the talk and talk the walk while continuously communicating with stakeholders.
Further reading
Don’t be a mixed-up chameleon! How to prioritize your ESG issues
Materiality: From reporting requirement to strategic insight
Under attack from multiple angles, does ESG’s evolution need a helping hand?
How regulation is shaping the future of ESG ratings and sustainable investments
Think your company’s too small to worry about ESG reporting?
Let’s be clear: ESG is not ‘woke’ and it’s different from sustainability
Authors
Related
How to manage your emotions as a leader
It is critically important that leaders manage their emotions. How, for example, do you respond to negative feedback from a client? The following should help you respond more effectively to the ups...
How to become a digital sustainability leader in 5 steps
Companies that excel in both digital and sustainable transformation attract a stock market premium – but how do you tap into that value? Here’s a five-step guide to outperforming your competitors. ...
Strategies for negotiating cross-sector alliances
Given the world’s many challenges, the ability to forge effective alliances across business, government, the non-profit sector, and academia has become essential to building durable solutions. Here are eight steps to guide...
Learn Brain Circuits
Join us for daily exercises focusing on issues from team building to developing an actionable sustainability plan to personal development. Go on - they only take five minutes.
Explore Leadership
What makes a great leader? Do you need charisma? How do you inspire your team? Our experts offer actionable insights through first-person narratives, behind-the-scenes interviews and The Help Desk.
Join Membership
Log in here to join in the conversation with the I by IMD community. Your subscription grants you access to the quarterly magazine plus daily articles, videos, podcasts and learning exercises.