What is the Double Materiality Assessment?

Group 2 min read

At BESIX Group, our commitment to being a responsible company means considering the environmental, social, and governance (ESG) impacts of our decisions. To understand what matters most to BESIX and our stakeholders, we conducted a Double Materiality Assessment (DMA) in 2023. This process helped us identify key sustainability issues affecting our business and those important to our employees, clients, partners, suppliers, NGOs, communities, and regulators.

Understanding Double Materiality

Think of Double Materiality as a two-way mirror. On one side, we examine how our actions impact the environment and society. This is called 'impact materiality'. On the other side, we look at how ESG issues affect our financial health, presenting both risks and opportunities. This is known as 'financial materiality'. For instance, how might climate change or stricter regulations influence our business?

The scope of our DMA

The DMA covered all aspects of BESIX Group’s operations, including BESIX Construction, BESIX Real Estate Development, BESIX Invest, and BESIX Affiliates. It spanned our entire value chain, from sourcing materials to building and maintaining assets. An external expert led the assessment by interviewing internal and external key stakeholders, ensuring diverse perspectives were gathered.

What we discovered

Through this process, we identified 13 key topics that are significant to BESIX. These topics reflect the positive and negative impacts of our activities on the environment, society, and the economy. They also highlight potential risks and opportunities linked to sustainability.

The results of the DMA, summarised in the matrix you see in the illustration, were validated by the BESIX ESG Board and Executive Committee, and shared with key stakeholders involved in the assessment.

Validation - and broadening - of our current approach

The DMA reaffirmed our commitment to ESG principles. Many issues we had already prioritized - such as CO2 reduction, circularity, health and safety, diversity and inclusion, business ethics, and fair labour - were confirmed as critical. This validation reassures us that we are on the right track.

The DMA also highlighted areas needing more attention, such as biodiversity, water management, and research and development for sustainable solutions. These insights will guide us in expanding our sustainability efforts.

Why is carrying out a DMA important?

The DMA helps us pinpoint the most important ESG priorities and marks a crucial step towards complying with the EU’s non-financial reporting requirements (CSRD*) by 2026. Since last May, seven working groups composed of 58 internal experts from 22 key departments and entities

have been aligning our DMA Key Material Topics with CSRD requirements, analysing our current situation, and planning the next steps to achieve full compliance.

Moving forward

Our journey doesn’t end here. The working groups will soon propose a roadmap to close any gaps and ensure we meet CSRD compliance by 2026. We will keep you updated on our progress in future articles.

Geert Aelbrecht, Group Sustainability & ESG Officer: The Double Materiality Assessment promotes dialogue with key stakeholders, ensuring that their concerns help shape the Group’s sustainability journey.

In conclusion, the DMA is more than just a compliance exercise. It’s a vital tool that helps us understand and respond to the sustainability issues that matter most to BESIX and our stakeholders and reinforces our commitment to responsible business practices.

*Note: The Double Materiality Assessment was conducted in line with the Corporate Sustainability Reporting Directive (CSRD) guidelines, which require European companies to comprehensively report on their environmental and social impacts and have this information externally audited.