Provide a detailed explanation of the process your organization employs to identify, assess, prioritize, and monitor potential and actual impacts on people and the environment. This should be informed by your due diligence process and include an account of how negative impacts are prioritized based on their relative severity and likelihood. Additionally, if applicable, describe how positive impacts are prioritized based on their relative scale, scope, and likelihood. Clarify how these processes determine which sustainability matters are deemed material for reporting purposes, referencing any qualitative or quantitative thresholds and other criteria as outlined in ESRS 1 section 3.4 on Impact Materiality.

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Accepted Answer

The process involves understanding the ESG context by analyzing the value chain, business activities, relationships, and other contextual information. This includes revising and updating current stakeholders and assessing how business activities impact them. The identification of impacts, risks, and opportunities (IROs) is done by evaluating ESG aspects of the entire value chain and the business. The evaluation of IROs involves assessing impacts, risks, and opportunities using quantitative and qualitative thresholds. The results are validated to identify the most relevant IROs, which form the basis for determining material issues. These themes are aligned with the ESRS to determine the requirements to include in the report.

Cellnex

ESRS disclosure: IRO-1_06

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