Double Materiality In CSRD : transcending Challenges, Uncovering Opportunities
Vazquez Harkivi, Mily (2024)
2024
All rights reserved. This publication is copyrighted. You may download, display and print it for Your own personal use. Commercial use is prohibited.
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024121235226
https://urn.fi/URN:NBN:fi:amk-2024121235226
Tiivistelmä
The political leadership worldwide is changing significantly in 2024, amid geopolitical conflicts. The World Economic Forum's 2024 Global Risks Report highlights that five out of the top ten global risks are environmental. The EU, committed to sustainability, ramped up its efforts with the EU Green Deal and sustainable finance strategies. A key tool in these efforts is the regulation of sustainability reporting, notably through the CSRD (Corporate Sustainability Reporting Directive) and the ESRS (European Sustainability Reporting Standards). This regulatory change aims to direct investment towards sustainable enterprises, impacting EU companies, foreign companies operating in the EU, and other economic actors collaborating with EU businesses.
The thesis consists of an article published in HAMK Unlimited (Journal) in English language. The article explores the implementation of the double materiality assessment (DMA) required by the CSRD in Finnish companies. The article explores how sustainability reporting has changed from voluntary to mandatory and aims at understanding how Finnish companies conduct the DMA required by the CSRD. The study underlining the article was conducted by applying qualitative methods consisting of semi-structured interviews with sustainability professionals and experts. A total of six participants were interviewed during the year 2024. According to their background, work position, and expertise, three are classified as experts and the other as sustainability professionals.
Key findings relate to the matters in which the companies focus when conducting a DMA. The results show that the participants focus on effectiveness when conducting a DMA. Other focus area is that of change and compliance. The results show that a significant challenge when conducting the DMA is linked to resourcing. Another challenge is related to finding the expertise needed to conduct the assessment. Analysing the salient concerns for those conducting a DMA provides insights into the priorities of the organizations and their sustainability management strategy.
The thesis consists of an article published in HAMK Unlimited (Journal) in English language. The article explores the implementation of the double materiality assessment (DMA) required by the CSRD in Finnish companies. The article explores how sustainability reporting has changed from voluntary to mandatory and aims at understanding how Finnish companies conduct the DMA required by the CSRD. The study underlining the article was conducted by applying qualitative methods consisting of semi-structured interviews with sustainability professionals and experts. A total of six participants were interviewed during the year 2024. According to their background, work position, and expertise, three are classified as experts and the other as sustainability professionals.
Key findings relate to the matters in which the companies focus when conducting a DMA. The results show that the participants focus on effectiveness when conducting a DMA. Other focus area is that of change and compliance. The results show that a significant challenge when conducting the DMA is linked to resourcing. Another challenge is related to finding the expertise needed to conduct the assessment. Analysing the salient concerns for those conducting a DMA provides insights into the priorities of the organizations and their sustainability management strategy.