Materiality analysis Excel template
CSR Tools has developed a comprehensive template for conducting the double materiality analysis (according to ESRS). The template provides a step-by-step guide through the process of determining the relevant stakeholders, identifying and assessing IROs and creating a materiality matrix.
Materiality analysis example
Company details
The following fictitious company was chosen for the examples that were created to help fill out the materiality analysis template.
- Medium-sized company
- Industry: Automotive suppliers
- Approx. 300 employees
- 3 locations: Germany; USA; Poland
The company is called GlobalDrive Solutions and specializes in the production of drive components and electric motors. With locations in Germany, the USA and Poland, the company operates globally and supplies leading car manufacturers with high-quality parts for electric and hybrid vehicles. The company attaches great importance to technological innovation and sustainability in order to meet the growing demands of the industry in the areas of energy efficiency and climate protection. Through research and development, GlobalDrive Solutions aims to create pioneering solutions for the mobility of tomorrow.
The screenshots show what a materiality analysis could look like for this company.
Step 1: Understanding the context
The first step is to understand your company’s specific business context and operations, including value chain, strategies, & relationships; products/services and locations.This is critical to identifying the most important sustainability issues and assessing their relevance to your stakeholders.
1.1 Create an overview of business activities and relationships
1.1.1 Analysis of the business plan, strategy, financial report and other relevant information
To begin with, you should analyze key company documents such as the business plan, the corporate strategy and the latest financial reports and record the reference to sustainability aspects and the IROs derived from them.
1.1.2. a) Overview of the products/services
In order to fill in the materiality template correctly, it is important to assess the impact of your products or services. An overview of the product (groups) is helpful here.
1.1.2. b) Overview of the geographical locations
The geographical presence of your company influences which sustainability issues are particularly relevant for you. Examine the locations of your production and distribution sites to identify regional differences in social and environmental challenges and record the IROs derived from them.
1.1.3 Mapping of business relationships and the upstream and downstream value chain
A holistic materiality analysis requires a deep understanding of the entire value chain – both upstream and downstream. Start by analyzing your suppliers and customers. The most important factors here are
- Environmental and social risks along the supply chain
- The sustainability requirements you place on your suppliers
1.2 Consider further contextual information
1.2.1 Analysis of the legal and regulatory framework conditions
List here which regulatory requirements and legal provisions, such as environmental protection laws, labor laws, data protection regulations, industry standards and compliance requirements, apply to your company.
Step 2: Stakeholder analysis
Although not required by the ESRS, stakeholder engagement plays a central role in the materiality analysis, as their interests and expectations are crucial in determining which topics are considered “material”. In this step, you should identify all relevant stakeholder groups and analyze their expectations and influence on your company.
Step 3: Identify IROS
In the third step, you should identify the impacts, risks and opportunities (IROs) associated with the material topics. This process helps you to understand how your company and its stakeholders are affected by or could benefit from certain topics. You will find over 40 example IROs in the Filling Guide to guide you.
Step 4: Materiality matrix
Once the IROs have been entered, the template visualizes the materiality matrix automatically. Among other things, this visualization is helpful for the final validation of the material topics, the presentation of the results to management and can also be published in the sustainability report.
Finally, the management and ideally also the Supervisory Board should validate the material topics identified, as they are ultimately responsible for the annual report (including the sustainability report) and may be liable.
Still have questions? You can find more information on the materiality analysis and the template on our FAQ page.
