How can you balance short-term and long-term materiality in reporting?

When conducting a materiality analysis, the following steps are important: 1. status quo analysis: Which topics are already being dealt with in the company? 2. environment analysis: Which topics arise from regulations, the industry and competitors or sustainability frameworks (e.g. GRI) 3. create a longlist of potential topics 4. evaluation of the topics based on the inside-out (impact of the company) and outside-in perspective (financial impact on company) This materiality analysis is the basis for reporting and strategy.

En GRI se dice, sobre la materialidad, que "es el principio que determina qué temas relevantes son suficientemente importantes como para que sea esencial presentar información al respecto". Me gusta esa definición como base para iniciar la estrategia de la contextualización. El tipo de empresa que se es, que se desea ser. La definición (correcta y objetiva) de grupo de interés. La nueva filosofía de la organización con respecto a sus objetivos empresariales. La contextualización inicial y la medición del campo de juego: esenciales para iniciar el proceso.

I agree double materiality is the future of climate transition and recovery. Thank you Michelle for being such a champion of sustainability especially for the beautiful nation of Bermuda.

The trade-off requires patience and a willingness to forgo immediate gains in favor of future rewards, e.g. contribution to resolve some of the global pressing issues. Organizations can explore innovative strategies, invest in research and development, or pursue sustainable practices that may not provide immediate returns but can lead to long-term growth and success. Striking a balance between short-term and long-term considerations is a dynamic process that requires ongoing assessment and adjustment, considering factors such as market conditions, financial viability, and the organization's overall goals, to ensure optimal outcomes for the organization's sustainability and growth.

Being Technology-Centric is key. Although accessible, affordable, and available satellite and terrestrial sensors and geospatial data are under utilized. The latest trends in geospatial cloud computing indicate a new set of skills will need to be developed to accelerate action for the environment and to adhere the to incoming global reporting compliance era 2024-2027.

No conozco mejor herramienta que las encuestas, las preguntas, las respuestas, las reuniones. Y así cualquier etcétera relacionado con la posibilidad de obtener, de primera mano, la visión del tercero que se ve afectado por nuestra actividad. La gestión de la respuesta, el otorgamiento de un peso específico en el resultado final. La comparativa de la situación a lo largo del tiempo; son acciones esenciales para ir recopilando y gestionando datos que terminarán en una base de datos, en un gráfico, en una matriz...

In technology-Centric Reporting significant strides are necessary to create digital technologies at the organizational level providing accountability, data and transparency that link positively to the delivery of ESG strategies and trust in institutional resilience, adaptability and mitigating risks across organizational structures, supply chains and workforce. AI is evolving to make the reporting process more automated and streamlined. Reporting shows the path taken, the use of actual data - actionable data - spend base data - key impact data - to avoid data paralysis, progress made, where the gaps are, corrections or improvements and most importantly a template for others to build on.

No me resulta sencillo este punto. La comunicación en el ámbito de la sostenibilidad corporativa sigue teniendo rémoras que vienen de un día a día que nada tiene que ver con la sostenibilidad corporativa. El lenguaje (sostenibilidad corporativa) es otro. La interpretación de resultados no pueden ser considerados como mera estadística. La interpretación y por lo tanto, comunicación final, debe ser realizada de forma canónica y profesional. De lo contrario, se corre el riesgo de no ser comprendida ni fuera ni dentro.

Increasing institutional resilience, adaptability and mitigating material risks across supply chains, labour forces and organizational structures calls for exploration. Scenario analysis information sets out potential risks that may be required in disclosure reporting requirement. Data governance: From a reporting perspective managing privacy around proprietary data and analytics is also a consideration to keep in mind.

Al medir los riesgos y las oportunidades, es fundamental establecer diferentes escenarios definidos, (incluso), para cada compañía y modelo de negocio. - ¿Cómo afectará a mis asuntos materiales las sequías prolongadas? - ¿Cómo afectarán a mis asuntos materiales el cambio legislativo que afecta a la producción de mi producto o servicio? Son escenarios (estos de ejemplo u otros parecidos) que necesariamente deben ser planteados a la hora de iniciar un estudio comparativo de medición de riesgos y oportunidades.

With global compliance reporting era on the threshold it is important to be aware of the different regimes and requirements. USA SEC climate risk requires financial materiality (value creation/financial disclosures/stability issue) while the European approach is double materiality (both financial and impact materiality). While this may not affect your sustainability reporting keep in mind the supply chain aspect as it may connect you in if you deal with a publicly listed company in USA or are doing business with a European company.

Implementing Integrated Reporting- Combine financial & sustainability information in a single report for holistic understanding. Demonstrate the interconnectedness between financial performance & sustainability goals. Utilizing Dynamic Materiality Assessments- Regularly review & update materiality assessments to reflect changing priorities & contexts. Utilize data analytics, stakeholder engagement, & scenario planning to identify emerging issues. Ensure materiality assessments remain relevant & informative over time. Applying Transparent & Consistent Reporting- Report sustainability metrics consistently across different reporting periods & platforms.

Balancing short-term and long-term materiality reporting is a challenge that many companies face when they want to communicate their sustainability performance to different stakeholders. There is no one-size-fits-all solution. However, two critical aspects of this are: First, choose a materiality approach that aligns with your reporting purpose and scope and apply it consistently and transparently. Second, engage with your stakeholders and seek feedback on your materiality assessment and reporting and assurance.

Long term materiality is called so because there is no immediate solution ; for reasons of cost / alternatives / technology/ policies / etc. But needs to be reported to showcase the company’s keenness to work in the same. Long term materiality vision and progress report along with Mike stones has to be reported separately. So that the company can get a run way … a flight plan of say 2/3/4/5 years to get their act in place and work on GHG. for example a mining company will have more to report on long term materiality for scope 3 under use of goods produced. This will have them look at customer way of using mined products and GHG in using these products. It’s a dependability on many users. Hence.

Essential for materiality assessments is the re-evaluation of topics each year. A good practice can be the involvement of stakeholders by suveys or stakeholder dialogues. In doing so you gain important Information if you are still on track with your material topics / materiality assessment.

It's not just materiality long term vs short term which is a factor, but also to recognise that materiality touches different stakeholder groups differently. The organisations with the most mature response to ESG factors, and those which consequently have the lowest risk - are those organisations who have differentiated between stakeholders, and communicated the progress they are making towards ESG issues of varying materiality in a form which each stakeholder group will understand.