Sustainability materiality assessment in the light of new reporting requirementsLeonie Reulecke

27 November 2018

In 2017 a new German directive (“CSR-directive”) was released, obligating 550 companies to disclose sustainability-related information on a yearly basis. However, the identification of the requested sustainability information via materiality analysis has always been regarded as a challenge. Therefore, practical guidance for reportable business is required. The aim of this work is thus, to derive a legally compliant sustainability materiality process that provides guidance for organizations by building on commonly agreed on reporting standards. The development of this materiality process is based on a threefold analysis. The practical applicability of the deduced process is demonstrated by a case study with a company operating in the renewable energy sector.

The outcome of the work is twofold: (1) A comprehensive and adjustable sustainability materiality process is developed that reflects the principle-based nature of the CSR-directive and supporting standards, providing a high level of flexibility by offering an overview about different methods for compliance. (2) The work offers a further interpretation of the CSR-directive, structuring the requirements along the hereby derived process.