Unit 8.2 Challenges in NFIR analysis process

1. Unit 8.2 Challenges in NFIR analysisprocess AwarnessandStrategies Unit 8.2 Challenges in NFIR analysisprocess

2. Materiality Howcanweassessifthelistof material topicsidentifiedby a companyiscompleteandaccurate? Wecannot. Butwecan: • Check ifreportingisconsistent • Are all material topicsidentifiedbythecompanycovered in thereport? • Ifreportisdone in accordancewith GRI, are all aspectsbelongingtooneindicatorcovered? Unit 8.2 Challenges in NFIR analysisprocess

3. Materiality • Evaluate theprocessofcarrying out thematerialityanalysis • First questiontoask: Doesthereportdescribetheprocess/methodologythat was usedforthematerialityanalysis? • If NO, useasentrypointfordiscussion: How was itdone? Unit 8.2 Challenges in NFIR analysisprocess

4. Example Deutsche Telekom AG: Since 2015, we implement this materiality process at our company in compliance with the methodology of the Global e-Sustainability Initiative (GeSI). This methodology covers 55 topics that are material to the ICT industry. … The advantage of using the GeSImethodology is that it allows us to focus on our core business as an ICT service provider. The materiality topics have been developed to pertain to a variety of companies and are therefore recognized in the industry.  Givesimpressionofspecialfittingandestablishesauthority Unit 8.2 Challenges in NFIR analysisprocess

5. Example • Questionstoaskifmethodologyisstated: • Istheremoreinformationaboutthismethodology? (What isGeSi?) • Who isbehindit? • Isthere a descriptionhowtheprocessworks? Access! Unit 8.2 Challenges in NFIR analysisprocess

6. Stakeholder engagementandmateriality • All reportsinclude material topicsfromstakeholderperspective, but howexactly do theyreflectthevariousmattersofconcernandwhatweight do theyhave?  Analystsneedtoevaluateinclusionandselectionofstakeholdersaswellasprocessofstakeholderengagement • Isthelistofstakeholderscompleteandwhoismissing? • Doesthereportmakecleardistinctionsorgivesexplanationshowstakeholdersweregrouped? • Example DT AG: „employees, potential employeesandtheirrepresentatives“ Unit 8.2 Challenges in NFIR analysisprocess

7. Stakeholder engagementandmateriality • Doesthereportdescribecommunicationandfeedbackchannelsandformatsofstakeholderengagement? • Are thesetheappropriateformatsorcanyouthinkofotherforms? e.g. online survey vs. internal survey • Doesthereportdescribehowfeedbackis weighed andincluded in materialityanalysis? • Doesthereportcoverboth positive and negative outcomesofthestakeholderengagementprocess? Unit 8.2 Challenges in NFIR analysisprocess

8. Impact assesment • Doesthereportprovide a description / evaluationofitsimpacts on theenvirnomentandsociety?  Doesitexplainhowtheimpactswereassesed? • Doesitcover positive and negative aspects? • Doesitdescribemeasureshowtoapproachtheseimpacts? If NOT • identifyitas a shortcomingofthereport • Think aboutwhereyoucouldpossiblygetfurtherinformation (e.g. annualreport) Unit 8.2 Challenges in NFIR analysisprocess

9. Howtomake a definite statement • Oftenitisdifficulttogive a clear Yes orNoanswerto an analysisquestion • In the end itis not importantif Yes orNoiscorrect, but thatthedecisionthat was madeiscomprehensibleandtransparantforthirdparties  Alwaysusethecomment/remarkssectiontogive a reasonforyourdecision  makeyourselfless vulnerable Unit 8.2 Challenges in NFIR analysisprocess

10. Conclusion • Arguewithwhatisthere, not withwhatshouldbethere! • Questionmaterialityanalysisandstakeholderengagementprocessesanddemonstrateshortcomings positive sideeffect: imageof well-informed expert • Explainyourdecisionsandfindings transparencyandaccountability/comprehensibility Unit 8.2 Challenges in NFIR analysisprocess

11. The European Commission support for the production of this publication does not constitute an endorsement of the contents, which reflects the views only of the authors, and the Commission cannot be held responsible for any use, which may be made of the information contained therein. Unit 8.2 Challenges in NFIR analysisprocess