Perform a good Materiality Analysis

The European Financial Reporting Advisory Group (EFRAG) provides detailed guidelines for companies to conduct dual materiality assessments under the European Sustainability Reporting Standards (ESRS) . The key recommendations are:

1. Understanding the context and defining the scope

2. Identify Impacts, Risks and Opportunities (IROs)

3. Evaluate and prioritize IROs

4. Integrate results into strategy and reporting

5. Tools and good practices

6. Continuous monitoring and updating

Practical example of a textile company

Passed	Brief Description	Applied Example
Step A	Understand the context (business, environment, stakeholders)	Textile company analyzes its value chain and environmental regulations
Step B	Identify actual and potential IROs	Detects the use of polluting dyes and the risk of new regulations
Step C	Evaluate and determine material IROs (dual materiality, materiality maps)	The use of dyes is material due to environmental impact and financial risk.
Step D	Reporting (disclosing policies, actions, objectives, metrics, and justification for non-material issues)	Reports on the reduction in the use of dyes and the results obtained

Graphic example