Effectively managing the value chain is essential for comprehensive ESG reporting, especially under the CSRD regulation. Our double materiality system simplifies this process with a set of forms that ask closed-choice questions, covering all ESG topics. Here's how you can leverage our system to handle the value chain in your double materiality assessment.
Focusing on Key Value Chain Components
The official methodology requires addressing the entire value chain. We have streamlined this process by focusing on the most impactful parts: suppliers and final clients. This approach allows you to efficiently assess the value chain's influence on your company's ESG stakes without spending too much efforts considering secondary-level stakeholders in the process.
Assessing ESG Stakes from Multiple Perspectives
To account for the influence of suppliers and final clients on your company's ESG performance, our forms include questions that evaluate each ESG stake from multiple perspectives:
Own Activities: How the ESG stake behaves within your own operations.
Suppliers: How the ESG stake is influenced by your suppliers.
Final Clients: How the ESG stake affects your final clients.
This multi-perspective approach ensures a comprehensive understanding of how different parts of the value chain impact your ESG performance.
Choose the answer that provides the best representativity of the assessed ecosystem
Complexity of assessing materiality in your value chain is that you may have hundreds of actors to consider, and still only one answer (aggregation) to provide in our questionnaire...
To do that, it is important that you use the right criteria to
Good metrics to "compute" an aggregated answer are :
Number of employees / Revenue (for Own Activities)
Revenue (for Final Clients)
Total expenses (for Suppliers)
For example, if you observe a very material behavior within 3 suppliers, but they represent only 2% of your total expenses, then you could neglect it and choose an answer that causes a low materiality for the assessed topic.
Weighing Responses for Accurate Results
After collecting responses, our system properly weighs the answers related to suppliers and final clients in comparison to your company's own activities. This weighted approach ensures that the final result accurately represents the materiality of the entire value chain. By balancing these perspectives, you get a nuanced view of the ESG stakes across your value chain.
Step-by-Step Guide
Access the Forms: Log in to our platform and navigate to the double materiality assessment section.
Complete Company-Level Questions: Fill out the forms with information about how each ESG stake behaves within your own activities.
Evaluate Suppliers' Impact: Answer the questions considering how each ESG stake is influenced by your suppliers.
Assess Final Clients' Influence: Answer the questions from the perspective of how each ESG stake impacts your final clients.
Review and Analyze: Once all questions are answered, review the collected data.
Generate Materiality Report: Our system will automatically weigh the responses and generate a comprehensive materiality report that reflects the influence of your entire value chain.
Conclusion
Handling the value chain in your double materiality assessment is simplified with our structured approach. By evaluating ESG stakes from the perspectives of your own activities, suppliers, and final clients, you can capture a comprehensive and balanced view of your value chain's materiality. This method ensures compliance with CSRD regulations and provides a clear, holistic understanding of your ESG performance.