Double materiality assessment in accordance with the CSRD directive – pilot project

Project name: Double materiality assessment in accordance with the CSRD directive – pilot project

Client: Zagrebački holding d.o.o.
Period: 5/2024 – 7/2024
Location: Croatia


The project aimed to conduct a double materiality assessment for two subsidiaries of Zagrebački Holding d.o.o., Čistoća and Zagrebačke ceste. A kick-off meeting was held to provide an overview of the requirements of the CSRD directive and ESRS standards, including their key principles: in-depth analysis, double materiality, and the value chain approach. During the meeting, a workshop was conducted to assess impacts, risks, and opportunities within the value chains of the Čistoća and Zagrebačke ceste subsidiaries. A SharePoint platform was set up to collect all necessary data and information required for the project. Templates were prepared, including an Excel sheet for mapping the value chains of Čistoća and Zagrebačke ceste, and a Word document for assessing the materiality of impacts for both subsidiaries.

The double materiality assessment included a sustainability context analysis, a value chain analysis, the identification of impacts, risks, and opportunities, and their prioritization. The sustainability context analysis involved a comprehensive review of the activities of Čistoća and Zagrebačke ceste, as well as those of Zagrebački Holding d.o.o., including business and technological processes, business relationships, and broader environmental, social, and governance (ESG) issues. Relevant strategies and plans, permits, and decisions of Zagrebački Holding, the City of Zagreb, the Republic of Croatia, and the European Green Deal initiatives and regulations (CSRD, ESRS, EU Taxonomy) were also analyzed. Emphasis was placed on the sustainability context of European cities, their role in achieving the European Green Deal, the impact of climate change on urban areas, and the challenges cities face in addressing these issues.

An initial value chain analysis revealed the complexity of assessing impacts due to the identification of multiple value chains within both subsidiaries. The analysis focused on those value chains where impacts, risks, and opportunities are most likely to occur based on the nature of activities, business relationships, and other relevant factors. It included identifying stakeholders across upstream and downstream segments of the value chain, as well as within the subsidiaries’ own operations, while distinguishing the impacts of direct business operations from those arising within the value chain. The strategy of Zagrebački Holding was analyzed to link sustainability factors to strategic objectives, to the extent possible, considering that the strategy only partially addresses the subsidiary Zagrebačke ceste. The goal was to provide insight into the exposure of Čistoća and Zagrebačke ceste to impacts, risks, and opportunities within their value chains and to outline key elements of the subsidiaries’ strategy and business models.

The materiality assessment of impacts was carried out based on a list of sustainability matters outlined in thematic ESRS standards as per ESRS 1 AR 16, along with specific factors identified through the expertise of the Oikon consulting team, given the lack of detailed data from Čistoća and Zagrebačke ceste. In assessing impacts, risks, and opportunities, nature was considered a “silent stakeholder,” serving as a critical element for a comprehensive evaluation of environmental impacts, risks, and opportunities for both subsidiaries. Scientific sources were utilized, including studies on planetary boundaries, reports from IPCC, Copernicus, the European Environment Agency, sectoral analyses, CDP requirements for climate change management and reporting, and other relevant academic and scientific works.

The project was guided by the results of ongoing dialogue within the grievance mechanisms of Čistoća and Zagrebačke ceste. Based on the list of sustainability matters and identified impacts, risks, and opportunities, prioritization was conducted using materiality criteria. The steps and methodological approaches in the double materiality assessment were thoroughly described to enable Zagrebački Holding d.o.o. to perform similar assessments for other subsidiaries as a basis for a consolidated evaluation of material impacts, risks, and opportunities. Along with the process description, Zagrebački Holding was provided with an Excel template for assessing the materiality of impacts, risks, and opportunities, accompanied by additional methodological explanations to meet ESRS requirements.

Oikon d.o.o.
Oikon d.o.o.
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