Innoflame Oy, the market leader of brand products and employee gift sales in Finland, selected Nordic Impact’s expert team to carry out a double materiality assessment (DMA) of its business. The work identified which sustainability topics according to the EU’s Sustainability Reporting Directive are relevant to Innoflame’s operations. The key objective was to identify and assess the impacts, risks and opportunities of Innoflame’s business in relation to sustainability factors in accordance with the European Sustainability Reporting Standards (ESRS) under the CSRD, as well as the potential financial impacts, risks and opportunities of these sustainability factors for Innoflame’s business.

Innoflame is a reliable partner for companies as a supplier of business gifts, HR products and workwear. Its service includes customised online stores as well as a comprehensive range of products, including product design, labelling, storage and distribution. Innoflame’s goal is to be a forerunner of responsibility in its sector, and it has been developing its corporate responsibility systematically for years. Although the sustainability reporting obligation does not yet directly apply to Innoflame, the company wants to prepare for reporting proactively. In previous years, Nordic Impact has implemented an organisation-level calculation of greenhouse gas emissions based on the greenhouse gas protocol (GHG protocol) for the company, and from this, it was natural to continue the partnership for further development of responsibility work.

The objective of the EU’s Corporate Sustainability Reporting Directive (CSRD) is to produce better and more transparent information about companies’ business operations

The Sustainability Reporting Directive 2022/2464/EU (CSRD) requires companies to report on sustainability topics relevant to its business. Relevant topics are those that are central to the company and/or its stakeholders or users of sustainability information in terms of impact, financial perspective or a combination of these.

The double materiality assessment creates a clear structure for identifying and evaluating sustainability topics

The CSRD is mandatory for all companies within its scope, setting clearly defined and binding reporting requirements. According to the CSRD, the sustainability topics relevant to the reporting company are defined by a double materiality assessment, which maps the company’s key sustainability impacts as well as the financial risks and opportunities of sustainability issues for the company. The double materiality assessment is an indicative approach to taking responsibility into account before reporting. It includes extensive stakeholderengagement, identification and assessment of relevant sustainability themes, as well as mapping of significant environmental, social and governance risks and opportunities, utilising workshops with the company’s key personnel.

In order to map the key impacts of Innoflame’s sustainability, the company’s sector, business model, governance model, value chains and the importance of stakeholders were analysed in the work.

The double materiality assessment consists of different work phases, which are as follows:

  • Based on the initial data, the company’s sustainability context is described and the most important stakeholders are identified.
  • Identifying actual and potential sustainability impacts, risks and opportunities includes assessing different aspects of the company’s operations from a sustainability perspective, including stakeholder consultations, in order to understand the environmental, social and economic (ESG) impacts of the operations.
  • Next, the significance and severity of these effects will be evaluated, including an analysis of the effects based on various criteria such as the extent, severity, likelihood and remediability of the damage caused.
  • Finally, the materiality thresholds set by management are applied to the identified sustainability impacts. The outcome is a prioritised list of sustainability impacts.

Based on the results of the analysis, the most important themes were defined for Innoflame’s responsibility work. The results give Innoflame a clear picture of the materiality of sustainability issues in relation to the business operations and help with planning the operations, making strategic decisions and managing risks.

Nordic Impact has an in-depth understanding of the prerequisites for reporting readiness and helps to assess the necessary information, data management processes and documentation practices. In addition, strong sector-specific experience helps to understand Innoflame’s special needs and challenges.

“The double materiality assessment project with Nordic Impact went very smoothly from start to finish. The project progressed clearly and systematically step by step, and as a result, we now have an important list of our sustainability impacts, on the basis of which we will continue our responsibility work.

Nordic Impact’s experts provided us with valuable expertise and insights on sustainability issues related to our sector and company. Although we are not yet covered by the Sustainability Reporting Directive in terms of our size, the company’s management considered it necessary to prepare for the CSRD’s requirements as early as at this stage. It serves not only our own responsibility work, but also our customers, many of whom will soon be within the scope of reporting” – Mika Henttonen, Innoflame Oy’s Sustainability Manager

Nordic Impact’s expertise and holistic approach ensures that the double materiality assessment is accurate, relevant and pragmatic, providing significant added value for the development and implementation of the company’s sustainability strategy in the long term. With the help of the double materiality assessment, Innoflame can prioritise the most significant and topical measures and set goals that help to promote responsibility, pursue new business opportunities and manage risks.

Read more about Innoflame’s responsibility on the company’s website.

Nordic Impact’s sustainability reporting services can be found here.