The Corporate Sustainability Reporting Directive (CSRD) requires all large companies to disclose information on the impact of their activities on people and the environment, as well as risk and opportunities arising from social and environmental issues.
Scatec assesses material sustainability related impacts, risks and opportunities according to the concept of double materiality in the ESRS. The double materiality assessment has a dual focus by investigating both an organisation’s impact on environment, people and society and how different ESG topics financially impact the company.
Since 2019, Scatec have conducted materiality assessments every second year, building the foundation for ESG strategy and reporting according to best practices. In 2023, we developed our materiality approach to align with the double materiality principle in the upcoming CSRD. The assessment is validated by the Executive Management (EMT), approved by the Board of Directors, and will be reviewed annually.
Regular engagement with internal and external stakeholders to understand what types of topics and issues concern them is key to determining our sustainability priorities. Scatec’s key stakeholder groups include co-investors and partners, financing partners, shareholders, employees, suppliers, contractors, governments and regulators, and local communities. Stakeholder have been involved in the double materiality process through interviews, roundtables and workshops, and their perspectives are integrated in the assessment. Interactions with external sustainability experts, partners and networks also informs our understanding of impacts, risks and opportunities along the value chain.
The double materiality assessment has been organised and performed in close collaboration between Finance and the Sustainability Reporting & Strategy team. A working group with subject matter experts and line managers contributed with inputs and cross-functional discussions: Environmental and Social, Heath and Safety, Community Engagement, Human Resources, Supply Chain, Financial Controlling, Enterprise Risk Management, Investor Relations and Communications. The EMT and representatives from the Audit Committee were involved one-to-one conversations as part of the insights phase, in addition to the validation of the results. The difference between internal and external stakeholder views were also reviewed and discussed as part of the assessment.