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Ext. PublicationWeaver’s 2024 ESG Report: Materiality Assessment
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Conducting a materiality assessment is the compulsory first step in any ESG program, guiding strategy, initiatives and reporting. For our ESG report, we conducted a traditional materiality assessment, prioritizing financial considerations while incorporating our environmental and social impacts.
As the ESG landscape continues to mature, emerging standards under the Corporate Sustainability Reporting Directive (CSRD) are influencing and redefining best practices. “Double materiality” is now at the forefront, requiring organizations to assess not only financial materiality (inside-out perspective) but also impact materiality (outside-in perspective). This enhanced approach pushes organizations to capture a more comprehensive view of sustainability risks and opportunities, examining not only financial implications but also the wider impacts of business operations. This shift is not just an extension of traditional materiality; it is a more rigorous analysis that involves a broader set of stakeholders and examines impacts, risks, and opportunities associated with each material topic — further validating the process and rationale.
Materiality has transitioned from a best practice to a regulatory mandate. To meet this new benchmark, we are enhancing our process to align with the scope of CSRD’s double materiality. This is not only a response to regulatory requirements but also reflects Weaver’s programmatic commitment to evaluating and adapting to emerging market standards.
The Weaver Process
Our process began by evaluating widely adopted frameworks to develop an initial list of ESG topics. This preliminary list drew from the Global Reporting Initiative (GRI) for broad and comparable ESG coverage, the Sustainability Accounting Standards Board (SASB) for sector-specific relevance, and the Task Force on Climate-related Financial Disclosures (TCFD) for comprehensive climate-related risk analysis. These frameworks laid a strong foundation, ensuring our approach was grounded in established best practices.
To further enhance the relevance of this list, we expanded it by incorporating topics from client feedback, market research and peer reviews. After careful consideration, we arrived at a comprehensive set of topics that represented the full scope of considerations pertinent to our business.
With this refined list, we began the process of filtering for material topics through the materiality assessment survey. We selected participants based on their exposure to diverse facets of our operations, ensuring that we captured informed perspectives on our critical ESG priorities. This exercise allowed us to identify topics that truly reflect our organization’s unique impact and strategic focus areas.
The materiality assessment identified the following as key focal areas for our 2024 report:
- Cybersecurity: Safeguarding systems and networks from digital threats
- Data Protection: Ensuring data integrity and accessibility
- Data Privacy: Protecting confidential information and complying with regulatory standards
- Client Satisfaction: Enhancing customer experience and loyalty
- Business Ethics: Upholding ethical standards in corporate governance and social responsibility
- Regulatory and Compliance Risk Management: Ensuring adherence to laws and regulations
Building on insights from our materiality assessment, we conducted a TCFD-aligned climate risk assessment to identify critical environmental and climate considerations. This integration enabled us to address potential external impacts on the firm more effectively. The materiality assessment guided our prioritization of key risks and opportunities, while the climate risk assessment provided climate-related threats and opportunities. We incorporated the key findings into our risk management and reporting practices. The assessment revealed that all Weaver offices faced substantial heat risk, along with specific vulnerabilities to flooding, tornadoes, lightning, landslides, earthquakes and wildfires.
Continuous Improvement in ESG
At Weaver, we are committed to evolving our ESG processes each year, strengthening outcomes for both our organization and our clients. By continuously improving our assessments, we ensure alignment with emerging regulations, stakeholder needs, and best practices, underscoring our commitment to responsible business and meaningful, sustainable impact.
©2024