Bellagroup has been reporting on ESG for several years. After the adoption of the CSRD and the new reporting standard, ESRS, they wanted to report according to the new framework. According to the standard, a double materiality analysis must be carried out. Transition has helped Bellagroup to carry out the analysis.
Bellagroup is one of Denmarks largest companies within hotels, conferences and trade fairs and consists of, among others, Bella Center Copenhagen, Bella Arena and Bella Sky Conference & Event.
Bellagroup has voluntarily chosen to work with ESG reporting since 2018. They have previously reported according to the standard The Global Reporting Initiative (GRI), but with the adoption of the EU directive, Corporate Sustainability Reporting Directive (CSRD), they wanted to report according to the new reporting standard, ESRS, which is under the CSRD.
An essential part of the standard is double materiality analysis. The analysis is comprehensive, and Transition has therefore helped Bellagroup carry it out.
The double materiality analysis and the process behind it
In a double materiality analysis, both internal and external factors are assessed to identify the most significant ESG themes that require action and reporting.
The analysis was not entirely foreign to Bellagroup, since the GRI standard also includes a materiality analysis. However, there is a significant difference between the two analyses. With double materiality, companies not only assess impact materiality, but also financial materiality. This means that there is both an inside-out and outside-in perspective. Hence, the name double materiality.
Bellagroup is a large organization with many different business areas, which is important to take into account when performing a doble materiality analysis. To perform the analysis, we structured the process based on the following steps:
- First, we needed to understand Bellagroup, their industry, and value chain.
- Then, Transition, in collaboration with Bellagroup, identified the impacts that could be significant across E, S and G.
- Together, we identified the most significant issues based on an assessment of severity, probability and irreparability as well as financial opportunities and risks
- All issues were subsequently ranked in a materiality matrix
- Transition then quality assured all impacts and quantifications
- Finally, the materiality matrix was sent for comment to selected internal and external stakeholders.
The analysis is a strong strategic tool
The double materiality analysis forms the basis for which disclosure requirements are material for Bellagroup to report on. But this is not the only quality of the analysis.
The double materiality analysis has provided valuable insights into Bellagroup’s opportunities and risks, which they can use strategically in their future work with efforts and initiatives within E, S and G.
Are you also interested in getting help with ESG reporting and double materiality analysis? Contact Mathias Selchau Majlund, Head of ESG, at mathias@transition.nu.