Materiality

Our commitment to Double Materiality

The Corporate Sustainability Reporting Directive (CSRD), approved in November 2022 by the European Parliament, reinforced the importance of sustainability in the business context, matching the level of demand for sustainability reporting with that of financial reporting

One of the central pillars of the CSRD is Double Materiality, which consolidates two distinct perspectives:

Impact Materiality: a topic is material from the Impact perspective if the company originates significant Impacts, whether real or potential, on people or the environment, in the short, medium, or long term.
Financial Materiality: a topic is material from the financial perspective if it has the potential to cause significant financial effects on the company, i.e., if it can generate Risks or Opportunities that may influence future cash flows and, therefore, the enterprise value, in the short, medium, or long term.

At LIPOR, we recognise the added value of this integrated approach. Our first materiality review exercise, carried out in 2022, was already based on the analysis and alignment of our activities with the concept of double materiality, with the incipient information available at the time.

In 2024, we carried out this exercise again, with the established biennial frequency, but in a much more rigorous, demanding and comprehensive manner, much due to the clarification of the legislation in effect, so that our sustainability report could contain information related to the Impacts, Risks and Opportunities (IRO) identified as material, regarding sustainability issues, through a double materiality assessment.