Carbon footprint (Scope 1-3) made easy: Template for materiality analysis (ESRS E1)

The materiality analysis (sometimes also referred to as materiality assessment) is a crucial step in a company's climate efforts. It is a process that aims to identify significant climate-related issues that are subject to ESG topics and to prioritize them for creating a Corporate Carbon Footprint (CCF) that is relevant to the company and its stakeholders. A free template for companies can be a helpful tool for conducting the climate balance materiality analysis, enabling the complex identification of different scopes according to the GHG Protocol. Through this analysis, companies can ensure that they focus on the aspects that have the greatest impact on the reduction of their emissions from both an economic and a sustainability perspective.

With our worksheet, you have the option to systematically go through this process. This allows you to fully identify all types of emissions from Scope 1 to 3. Our free template for the CO2 footprint materiality analysis is available for the implementation of this complex process. Thus, nothing stands in the way of creating your Corporate Carbon Footprint (CCF)!

Materiality Analysis: Key Insights at a Glance

• Our free template effectively supports companies in their CCF materiality analysis.

• The materiality analysis prioritizes relevant climate scopes (1-3).

• Using this method, the identification of significant Scope 3 categories for prioritizing the calculation is successful.

Successful Materiality Analysis: Free Excel Template in Practical Use

The materiality analysis is an important tool for companies to identify key issues and priorities for their climate strategy. These issues are essential for creating a Corporate Carbon Footprint (CCF). The materiality analysis plays a significant role in the strategic alignment and in meeting legal reporting obligations. This process is described in detail in the free template. This template can be understood as a worksheet. It allows you to independently integrate the complex handling of the various scopes into your company processes. The worksheet can be downloaded at the end of the article.

Materiality Analysis: Definition and Importance for Your Climate Balance

The materiality analysis refers to a procedure that companies use to determine which aspects of climate protection are significant for them and their stakeholders. The result of such an analysis is often a materiality matrix, which visualizes and prioritizes the importance of various climate-related aspects. It helps companies to manage resources effectively and make strategic decisions. This process is described in our free template using a practical example and can be conducted independently for your individual needs.

Legal Framework for Climate Balance Materiality Analysis

In the legal context, the materiality analysis is particularly shaped by the Corporate Sustainability Reporting Directive (CSRD). This legislation obliges large companies to report on significant sustainability issues. Frameworks like the European Sustainability Reporting Standards (ESRS) offer standards that guide the execution of the materiality analysis and make its results internationally comparable. In particular, with the standards from ESRS E1 Climate Change, they are able to conduct screenings for Scopes 1, 2, and 3 as well as identify and prioritize significant Scope 3 categories according to the GHG Protocol for your climate balance.

Integrating the Materiality Analysis into Your Climate Strategy (Scopes 1, 2 & 3)

When integrating the materiality analysis into a company's climate strategy, it is crucial to set specific goals from the ESRS E1 Climate Protection standards after identifying the scope categories and to develop clear strategies for achieving these goals. This includes, in addition to reducing emissions from Scopes 1 and 2, particularly the identification and reduction of Scope 3 emissions according to the Greenhouse Gas Protocol. Furthermore, comprehensive reporting, promoting transparency, and using the Corporate Carbon Footprint as a control instrument play a key role in establishing a climate strategy. To facilitate this, the free materiality analysis worksheet provides a structured guidance. Additionally, it is advisable to utilize professional tools and support such as energy auditors and software tools from Global Changer.

Assessing Measures with the CCF Materiality Analysis

Companies must define actions based on the materiality analysis that influence the emission categories to be reported. Subsequently, reporting companies need to evaluate the extent to which the proposed measures can influence emission reductions. This is clearly illustrated in our free CCF materiality analysis template using a practical example. Our worksheet also gives you the option to graphically present the proposed measures as a materiality matrix. Thus, depending on the magnitude of the emission impact (y-axis) and the influenceability of the measures (x-axis), the relevant corporate action areas in the pertinent scopes for establishing your climate balance can be identified.

Tips for Reducing Scope 3 Emissions with the Free Template

Our free worksheet is particularly useful for identifying significant Scope 3 emissions. The development of strategies for reducing these emissions requires a detailed understanding of the indirect emissions that occur along a company's value chain. This includes both upstream and downstream activities. Effective measures can include switching to renewable energy sources or optimizing logistical processes.

Reporting and Transparency

Reporting and transparency are essential aspects to build trust. A detailed sustainability report, which is integrated into the annual report , promotes credibility and allows for clear communication about progress concerning sustainability. This includes the disclosure of the methodology used in the materiality analysis and the resulting fields of action.

The Role of a Climate Balance

The Corporate Carbon Footprint (CCF) serves as a tool for measuring and managing greenhouse gas emissions. Companies use the CO2 footprint to quantify their environmental impacts, identify sources of emissions, and prioritize emission reduction measures. A free template for the CCF materiality analysis offers you the optimal foundation for creating your Corporate Carbon Footprint. Download our customized worksheet now and create a central control element for the implementation of your climate strategy.

Frequently Asked Questions

In the context of companies' sustainability efforts, the materiality analysis holds a key position. This section addresses frequently asked questions about this essential tool.

What role does the materiality analysis play for companies' sustainability reporting?

The materiality analysis is crucial for companies to recognize climate-relevant aspects from their sustainability reporting. It helps identify which aspects are significant for the company itself and thus should be prioritized in reporting.

How are Scope 3 emissions correctly calculated?

Scope 3 emissions include indirect emissions that occur outside of the company's own activities. Their calculation requires a comprehensive analysis of the value chain. Reliable data collection methods and sources are needed to conduct accurate calculations.

How can the materiality analysis contribute to identifying key factors?

Through the materiality analysis, companies can identify critical factors that are relevant to implementing their climate strategy and therefore their business. This process supports strategic decision-making and directs resources towards significant areas.

What steps should be considered when conducting a materiality analysis?

When conducting a materiality analysis, the first step is to identify relevant sustainability topics. This is followed by assessing the relevance of these topics and prioritizing them based on their significance to the company.

How does the materiality analysis differ from other analytical methods in the field of sustainability?

The materiality analysis differs from other analytical methods by its specific focus on the relevance and significance of sustainability topics. While other methods may focus on risk analyses or environmental impacts, the materiality analysis emphasizes the strategic importance for the company and its stakeholders.