The Double Materiality Assessment (DMA) identifies the sustainability topics that are most critical to our business, from both a financial and impact perspective. This helps us prioritise our efforts on the issues where we can make real and tangible progress.
The DMA also acts as an essential first step towards meeting increasing regulatory requirements, including those of the Corporate Sustainability Reporting Directive (CSRD).
Financial materiality examines how environmental and social factors, such as climate change or resource scarcity, affect our financial performance, while impact materiality evaluates how our operations and activities impact the environment, society, and other stakeholders. This dual approach allows us to identify and prioritise the impacts, risks, and opportunities in our sustainability work.
During 2024, we updated our DMA building on the approach and results of the DMA from 2023. To a large extent, the results confirmed that our sustainability approach covers the topics most critical to our business.
The topics shown in the top right are material from both a financial and impact perspective, making them the most important for us. The bottom right corner shows the issues that are only material from an impact perspective.
Impacts, Risks, and Opportunities
We held workshops with internal subject matter experts with the aim of scoring and calibrating the potential and actual Impacts, Risks, and Opportunities (IROs). Where possible, we used quantitative assessments and aligned DMA risks with the corresponding risks identified as part of our enterprise risk management process. For assessing impact materiality, we used a five-point scoring system for scale, scope, irremediability, and likelihood. Similarly, for financial materiality, we employed a five-point scoring system for financial extent and likelihood.
We have also established a watchlist of IROs that fall just below the threshold for materiality. These potentially material IROs are monitored closely and reviewed on an annual basis.
See the full list of IROs relating to Environmental issues, Social issues, and corporate Governance.
Ever since our founding, the VELUX Group has been shaped by our Model Company Objective.
In 2023, we embedded sustainability into our corporate strategy, making it a core element of our business and an integral part of all aspects of our organisation - from supplier selection to product design and end-of-life management.