CSRD Materiality Assessment at Loihde
"The Double Materiality Assessment was a great benefit for us, and we were able to identify our material sustainability topics and CSRD data requirements. This project gave us a good basis to produce our CSRD reporting. Advisense also provided us practical guidance how to proceed with the CSRD reporting."
- Tiina Nieminen, Head of Communications at Loihde
ESG practical implementation
CSRD Materiality Assessment
ESRS Data Requirements
ESRS Data Points
Background
All companies covered by the CSRD Directive are required to report on the material sustainability risks, impacts and opportunities of their business. The aim of the law is to direct EU financial flows towards environmentally and socially sustainable companies. Sustainability is becoming increasingly crucial when companies select vendors and partners, as well as how employees evaluate their existing or potential employers.
Challenge
Loihde will submit a sustainability report according to CSRD starting with information from 2025. Sustainability reporting is not new for Loihde, and they have previously conducted their own sustainability reporting. However, companies falling under CSRD are required to produce their sustainability report according to the new legislation, i.e., CSRD directive and ESRS reporting guidelines.
Double Materiality Assessment is the basis of CSRD sustainability reporting, and it determines which sustainability topics and data points the company shall report in their sustainability report. Loihde’s sustainability reporting project started out in spring 2024 with a Double Materiality Assessment to identify all material impacts, risks and opportunities (IRO’s) of the company in relation to the environment, society and governance. More than just communication, sustainability reporting is a broader aspect of business, extending across the company and its value chains.
Advisense’s task was to perform the Double Materiality Assessment for Loihde and identify material sustainability topics and data requirements based on this assessment.
Solution
The project produced a Double Materiality Assessment (impact & financial materiality) according to CSRD and ESRS including Loihde’s own activities and value chain impacts. The project started with identification of all sustainability issues for Loihde and resulted to narrowing the sustainability issues to material and potential sustainability topics using a materiality assessment tool developed by Advisense. The assessment was done by collecting data from internal sources and by interviews. Advisense conducted the materiality assessment on business unit level and aggregated the results to group level.
Result
The project resulted in Loihde’s material and potential sustainability topics and a list of data points that Loihde needs to enclose in their CSRD sustainability report based on the Double Materiality Assessment.
The final written output considered current material impacts, potential material impacts and economic impacts.
The Double Materiality Assessment was a great benefit for us, and we were able to identify our material sustainability topics and CSRD data requirements. This project gave us a good basis to produce our CSRD reporting. Advisense also provided us practical guidance how to proceed with the CSRD reporting.
Tiina Nieminen, Head of Communications at Loihde
A well-produced CSRD materiality assessment provides companies a sound foundation to identify their reporting obligation including data points the company is required to report in their sustainability reporting. Comprehensive materiality assessment is the key component to be able to produce sustainability reporting according to the legislation.
Suvi Muinonen, Senior Manager at Advisense
