Streamlining double materiality assessment processes with Inclus
Miltton, a leading Nordic consultancy, demonstrates a structured, step-by-step approach to double materiality analysis by employing the digital capabilities of Inclus. This process not only aligns with regulatory requirements but also facilitates strategic business decisions. Hanna Ritari, Director, Sustainability Reporting & Senior Sustainability Advisor at Miltton demonstrates, step by step, how Miltton leverages Inclus in their double materiality assessment processes with clients.
Understanding the context: Miltton begins their double materiality assessment assignments by establishing a foundational understanding of the relevant sustainability aspects that are entwined with the client company's business model, value chain, and overarching strategy. This initial phase is critical in setting the stage for a more focused analysis.
Identifying sustainability impacts, risks and opportunities: The next step involves a detailed identification of the effects, risks, and opportunities related to sustainability. Miltton actively identifies and pinpoints the direct and indirect impacts on societal and environmental factors, alongside the financial implications.
Assessment of sustainability effects, risks and opportunities: During the assessment phase, sustainability effects, risks, and opportunities are meticulously scored and evaluated. Miltton utilizes both quantitative and qualitative criteria, engaging stakeholders through workshops or ex ante assessments to ensure comprehensive evaluation.
Synthetizing results, validation and reporting: The final phase encapsulates the synthesis, validation, and reporting of the findings. Here, the aim is to validate the entire process, ensuring that the double materiality assessment is in compliance with ESRS requirements and accurately reflected in the board's reports.
“We have used Inclus particularly in the early phases of the double materiality assessment process, to engage stakeholders in identifying sustainability factors, and again particularly in the assessment phase, where stakeholder insights are important in order for the final reporting to properly consider all relevant risks but also opportunities.”
Hanna Ritari, Director, Sustainability Reporting & Senior Sustainability Advisor
Visualization and strategic impact
Inclus’s process planning tools assist Miltton in identifying relevant topics for their clients and navigating their complexities together. The dynamic visualization capabilities provided by Inclus enhance the understanding of diverse perspectives on risks and opportunities, as well as risk assessment versus probability.
The facilitation of stakeholder engagement through Inclus frequently sparks insightful dialogues that can profoundly influence a company's strategic trajectory. Consequently, Miltton is empowered to enhance their clients’ ESG initiatives, delivering the level of strategic insight and direction that is anticipated of them.