Financial Materiality Assessment Using Sustainalytics Tool

This report is part three of a series focusing on financial materiality within the context of Sustainalytics' Double Materiality Assessment (DMA) tool. It examines the financial materiality of ten European Sustainability Reporting Standards (ESRS) topics across 135 subindustries, revealing that 56.9% of assessed combinations are financially material. The report highlights three subindustries—Agriculture, Restaurants, and Food Retail—that exhibit significant exposure to ESG-related risks, with financial materiality identified across nine of the ten ESRS topics. The most frequently material topics include E1 Climate Change, S1 Own Workforce, and G1 Business Conduct, which are critical for corporate sustainability reporting. The analysis further evaluates how well Europe-based companies are prepared to meet ESRS disclosure requirements by assessing their ESG Risk Ratings. The findings indicate a need for focused reporting that aligns with the financial implications of sustainability-related risks, ensuring that disclosures are relevant and useful for decision-making.