Dual Materiality Analysis (DMA)

Taking a step forward in its commitment to sustainability, the Trusted Connectivity business unit of the multinational VALID has conducted a Dual Materiality Analysis (DMA) in accordance with the European Sustainability Reporting Standards (ESRS).

The challenge

The main challenges of this project have been:

• Establish a method to identify the relevant issues that affect or are affected by Trusted Connectivity's activity, considering both the financial perspective (financial materiality) and the impact on the environment and society (impact materiality).

• Implement a reliable process for prioritising material issues according to their relative importance to the organisation and its key stakeholders.

• Align work with the European Sustainability Reporting Standards (ESRS) guidelines related to the WMD.

The solution

In order to carry out the dual materiality analysis, a process structured in four phases was followed:

• ContextualisationThe basis of the analysis has been established, providing a clear and structured view of the strategic, sectoral and operational context.
• Identification of impacts, risks and opportunities (IRO): Through individual interviews with key persons in the organisation, relevant and potentially material ESG issues were identified.
• Materiality assessmentThe ESRS/NEIS standards: through surveys, stakeholders assessed impacts, risks and opportunities according to the evaluation criteria defined in the ESRS/NEIS standards.
• Consolidation and interpretation: The assessments were aggregated and the results presented graphically in a Dual Materiality report.ad.

Value contributed

The completion of the ADM was an important step forward for VALID's Trusted Connectivity business unit in its commitment to sustainability. Thanks to an approach fully aligned with the European Sustainability Reporting Standards (ESRS/NEIS), the analysis allowed us to rigorously identify the most relevant impacts, risks and opportunities (IROs).

This work has provided the organisation with a clear and prioritised view of key material issues, strengthening ESG decision-making and facilitating more transparent communication in line with stakeholder expectations in the Spanish, Latin American, APAC and EMEA regions.