Tag: double materiality
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Small and medium-sized enterprises (SMEs)
Small and medium-sized enterprises (SMEs) – Europe Small and Medium-sized Enterprises (SMEs) refer to businesses whose size falls below certain thresholds in terms of employees, revenue, or assets, which vary by country or industry. SMEs are typically defined by: SMEs play a crucial role in economies by driving innovation, creating jobs, and contributing to economic…
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Impact Materiality
Impact materiality is the aspect of double materiality that focuses on the impact that a company’s activities have on society and the environment. environment, society, and governance.
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Financial Materiality
Financial Materiality Financial materiality is the aspect of double materiality that refers to the impact that ESG issues can have on a company’s financial performance. For example, how climate change, workforce management, or a company’s governance practices can influence its revenues, costs, asset value, and reputation. This is the traditional perspective of materiality in which…
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Double Materiality
Materiality holds significant importance within sustainability reporting, signifying the prioritization of certain issues by an organization and its stakeholders over others. Previously, materiality assessments focused solely on the company’s impact on external factors such as the environment. However, the evolving recognition of the interconnectedness between a company’s actions and broader societal challenges has led to…