ESRS 2
GENERAL STATEMENTS
The ‘scope’ criterion describes the extent of the actual or potential impact – both geographically and in terms of the number of people affected: a score of 1 refers to a single manufacturing company or individual persons, while a score of 5 affects the global environment or the whole of humanity. The ‘irremediability’ criterion assesses the extent to which an impact can be reversed. A score of 1 indicates that the impact can be remediated quickly and with little effort, whereas a score of 5 means that it is not possible to restore the original condition. A likelihood score of 1 indicates a very low like- lihood of this IRO occurring, while a score of 5 indicates a very high likelihood of occur- rence or that the IRO has already materi- alized. The Zumtobel Group also draws on the two WWF Risk Filter Suites mentioned above, namely the Biodiversity Risk Filter and Water Risk Filter, and the Industry Risk Filter, among others, when assessing the potential environmental impact of biodiver- sity as well as water and marine resources. The materiality assessment accounted for geographical conditions, specific business activities along the value chain and other factors that could increase the risk of poten- tial negative impacts.
Financial risks and opportunities are then categorised in terms of their ability to influ- ence revenue, expenses, cash flow, assets and/or cost of capital. A short-, medium- and/or long-term horizon is defined for all IROs with respect to the timing of their occurrence. Topics are evaluated based on feedback received from internal and external stake- holders (stakeholder engagement). The shortlist is first evaluated in a corporate context at internal expert workshops; these findings are then discussed and analysed with external stakeholders. The external feedback received was compared with inter- nal comments; no significant discrepancies were identified as part of this comparison.
Assessment criterions
The assessment considers both the likeli- hood and the severity of IROs. Identified im- pacts, risks and opportunities are classified using a scale from 1 (low) to 5 (high). Actual and potential negative impacts on people and the environment are calculated by multiplying the probability of occurrence by the sum of severity (scale), number of people affected (scope) and irremediability. The ir- remediability of actual and potential positive impacts on people and the environment is not taken into account. For potential risks and opportunities, the financial impact is multiplied by the probability of occurrence. The ‘severity’ (scale) assessment criterion describes the significance of the impact on those affected. Taking a workplace accident as an example, a score of 1 would describe a minor injury, such as a small cut, while a score of 5 would represent a potentially fatal workplace accident.
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