Double materiality assessment
Last year we engaged with our stakeholders to inform the development of our first materiality assessment. We used this enhanced understanding of stakeholder interest, coupled with an evaluation of financial impact to formulate a double materiality assessment. This approach considers materiality from two perspectives: firstly, the impact on the financial value of Redde Northgate; and secondly, the environmental and social impact on a broad range of stakeholders.
Applying the lens of double materiality enhances the value of this assessment for both corporate reporting and strategy development. Material issues extracted from the assessment are detailed below with these particular examples demonstrating the duality of issues from an internal and external perspective.
Double materiality issues in focus
Environment
Climate change and action
We see significant commercial opportunities for the business in enabling the low carbon mobility transition for customers. Whilst climate change presents us with commercial opportunities, we must acknowledge that our fleet is still predominantly powered by internal combustion engines and is therefore creating significant environmental impact.
Social
Social mobility and diversity
The skills shortage in the vehicle industry is further exacerbated by a lack of gender diversity and underrepresentation of black and minority ethnic people. Recruiting a more diverse workforce from all backgrounds will help us to address skill shortages and reduce social inequality.
Governance
Corporate governance and remuneration
The growing number of ESG governance and reporting duties being placed on large organisations results in associated financial costs and increase in corporate risk. Looking at these issues from an external perspective, if we link ESG performance into remuneration we can drive on more positive outcomes to stakeholders and society.
Understanding the link between inward and outward impacts of an issue will help us to develop a more effective ESG framework as well reporting on the issues in a more meaningful way to stakeholders. By identifying financially material issues we are able to advance priorities that are of the greatest concern to us as well as providing greater corporate transparency to our stakeholders.
- Challenge
- Opportunity
Social