Dear Readers,

The EU Commission's omnibus package aims to ease regulations, the U.S. is withdrawing from the Paris Climate Agreement, and sustainability has slipped down the political agenda in Germany. These recent political shifts are often presented as pro-business measures, suggesting that loosening sustainability requirements supports economic growth.

However, treating economic competitiveness and sustainability as opposing forces is a false dilemma. Businesses that implement standardized risk monitoring and integrate social, environmental, and economic impacts strengthen both their long-term resilience and competitive position.

In this edition of WifOR Insights Sustainability, I explore how companies can turn their compliance efforts into strategic advantages through Impact Valuation – using Sector Benchmarks, WifOR's Value Factors 2.0, and the web-based sustainability impact tool WISIT.

Enjoy reading!

Best wishes,

Using Impact Valuation for Materiality Assessment

Impact Valuation for Double Materiality Assessment

A key part of the CSRD – double materiality – remains unaffected by omnibus. Companies will continue to dedicate significant resources to meet CSRD requirements.

At the same time, the data collected can provide insights that go far beyond the fulfillment of legal obligations. Through Impact Valuation, organizations can turn CSRD data into actionable insights by assessing their societal impact. This enables companies to better understand the true cost or value of their actions, leading to more effective decision-making.

What is needed for an effective Double Materiality Assessment, and how can companies identify and prioritize ESG topics in an evidence-based way? In this article, I summarize everything you need to know about Materiality Assessment and how Impact Valuation can help detect relevant topics objectively.

The recent publication “Valuing Impact Materiality” by the Value Balancing Alliance presents a comprehensive framework for assessing materiality thresholds and key ESG topics in CSRD reporting, using Impact Valuation as a core method.

New Sector Benchmarks: Adding Context to Sustainability Metrics

A key component of Impact Valuation is the ability to translate data into action. However, metrics alone are not enough: context is key. To help businesses understand their competitive position – not just financially, but also in environmental and social dimensions – WifOR Institute has introduced new sector benchmarks.

Covering 11 industries, these benchmarks help companies to:

Compare sustainability performance within their industry

Identify ESG risks and collaboration opportunities

Enhance Double Materiality Assessment through sector-specific insights

Access the 11 reports of global sector benchmarks, classified according to SICS®, here.

Value Factors 2.0: Turning Impact into Strategy

To translate impact into decision-making, companies need a standardized way to evaluate sustainability. Our Value Factors 2.0 offer a scientific approach to quantifying social, environmental, and economic externalities.

WifOR Institute's Value Factors 2.0 incorporate the latest peer-reviewed research, with annual inflation adjustments, refined GHG Value Factors, and improved data on biodiversity, waste, and fair wages.

Download WifOR Institute’s Value Factors 2.0 here

GHG Emission Factors and Spend-based Multipliers for Sustainability Analysis

WifOR also offers GHG Emission Factors, which enable companies to assess their Scope 3 emissions along the supply chain, applying the spend-based method recommended by the GHG Protocol.

Learn more about WifOR Institute’s GHG Emission Factors here

But did you know that the spend-based method also works for other environmental and social impacts? For businesses seeking to assess their impacts holistically, WifOR’s Spend-Based Multipliers provide a framework for sustainability analysis using readily available procurement data.

Learn more about Sustainability Analysis – Spend-based Multipliers here

Join Our Masterclass: Measure Your Company's Supply Chain Impact in 3 Simple Steps

WISIT – the WifOR Institute Sustainability Impact Tool – contains WifOR's entire database and shows results directly in a dashboard. The Masterclass includes best-practice examples from SAP, which we are particularly looking forward to. If you’re interested in learning how to use it, don’t miss our free masterclass on March 13th, 3:00–4:00 PM (CET) / 10:00–11:00 AM (EDT).