VSME Comp MM Generation

Overview

This comprehensive assessment is designed for Very Small, Medium, and Micro Enterprises (VSME) that are ready for more detailed ESG analysis and reporting. It builds upon the VSME Basic framework with enhanced scoring granularity and industry-specific considerations.

Assessment Time: 90-120 minutes
Target: Companies with <250 employees, <€50M turnover, seeking comprehensive ESG management

ESRS 1 & ESRS2 Cross-cutting Standards

ESRS 1: General Requirements Assessment

1 - ESG Management Maturity: How sophisticated is your organization's approach to ESG materiality assessment and impact management?

Sophisticated materiality assessment with stakeholder input and regular updates

Structured materiality assessment with some stakeholder involvement

Basic materiality assessment, primarily internal perspective

Informal materiality consideration, limited systematic approach

No structured materiality assessment process

ESRS 1: General Requirements Assessment

2 - Supply chain Visibility: To what extent has your organization mapped its full value chain and assessed ESG risks across it?

Comprehensive value chain mapping with ESG risk assessment

Good understanding of value chain with some ESG considerations

Basic value chain mapping, limited ESG integration

Minimal value chain understanding beyond direct suppliers/customers

No systematic value chain mapping

ESRS 1: General Requirements Assessment

3 - Strategic Planning Sophistication: How does your organization integrate short-, medium-, and long-term horizons into ESG planning and risk assessment?

Integrated short (1-2 years), medium (3-5 years), and long-term (10+ years) ESG planning with clear targets

Good medium-term ESG planning with some long-term considerations

Primarily short-term ESG planning with basic medium-term goals

Limited ESG planning beyond immediate compliance requirements

No systematic ESG planning across time horizons

ESRS 1: General Requirements Assessment

4 - Impact Management Systems: How effectively does your organization identify, assess, and manage its most significant ESG impacts?

Comprehensive impact identification, measurement, and management with clear targets and remediation

Good impact assessment with systematic management and monitoring processes

Basic impact identification with some management measures for key areas

Limited impact assessment, mainly reactive management approach

No systematic impact identification or management processes

ESRS 2: General Disclosures Assessment

5 - Organizational Readiness: What is your ESG governance structure?

Board-level ESG oversight with clear responsibilities and expertise

Senior management ESG responsibility with board reporting

Designated ESG management with some senior oversight

ESG responsibilities distributed without clear accountability

No formal ESG governance structure

ESRS 2: General Disclosures Assessment

6 - ESG Maturity: To what extent is ESG integrated into your organization's core strategy and decision-making processes?

ESG fully integrated into business strategy and decision-making

ESG considerations built into strategic planning

Some ESG integration in strategy, mainly compliance-driven

Limited ESG strategy integration, separate from business strategy

No ESG strategy integration

ESRS 2: General Disclosures Assessment

7 - Operational Capability: How mature is your organization's ESG risk management system, and how well is it integrated with enterprise risk processes?

Comprehensive ESG risk management integrated with enterprise risk management

Good ESG risk identification and management processes

Basic ESG risk management, some integration with business risk

Limited ESG risk management, mainly reactive

No systematic ESG risk management

ESRS 2: General Disclosures Assessment

8 - Stakeholder Engagement Maturity: How effectively does your organization engage with stakeholders on ESG matters and incorporate their feedback into decision-making?

Systematic stakeholder engagement with regular dialogue and feedback integration into strategy

Good stakeholder engagement with periodic consultation and responsive management

Basic stakeholder engagement, mainly for compliance and key issues

Limited stakeholder engagement, primarily one-way communication

No systematic stakeholder engagement on ESG matters

ESRS 2: General Disclosures Assessment

9 - ESG Data and Reporting Capability: How robust are your systems for collecting, managing, and reporting ESG data?

Comprehensive ESG data management system with automated collection and integrated reporting

Good data collection and management with systematic reporting processes

Basic data collection for key ESG metrics with standard reporting

Limited data collection, mainly manual processes with basic reporting

No systematic ESG data collection or reporting systems

ESRS 2: General Disclosures Assessment

10 - Business Model Integration: How well does your organization understand and articulate how ESG factors create or destroy value in your business model?

Clear understanding of ESG value creation/destruction with quantified impacts on business model

Good understanding of ESG-business model linkages with some quantification

Basic understanding of how ESG affects business performance

Limited understanding of ESG-business model connections

No systematic understanding of ESG value creation or destruction

Core ESG Topic Assessment

E1: Climate Change

A - Direct Climate Impact: How significant are your direct greenhouse gas emissions and energy consumption?

Minimal emissions (<10 tCO2e/year), 100% renewable energy, carbon negative

Low emissions (10-50 tCO2e/year), majority renewable energy, offsetting programs

Moderate emissions (50-250 tCO2e/year), some renewable energy, efficiency measures

High emissions (250-1000 tCO2e/year), mostly fossil fuels, limited efficiency measures

Very high emissions (>1000 tCO2e/year), heavy fossil fuel dependence, no mitigation

E1: Climate Change

B. Value Chain Climate Impact: How significant are the climate impacts of your supply chain and products?

Supply chain and products actively reduce emissions (regenerative agriculture, carbon-negative products)

Low-carbon supply chain, products support climate goals

Moderate supply chain emissions, working with suppliers on reduction

High supply chain emissions, limited supplier engagement on climate

Very high supply chain emissions, no consideration of value chain climate impact

E1: Climate Change

C - Stakeholder Climate Expectations: What level of climate action do your stakeholders expect?

Recognized climate leader, stakeholders look to you for guidance

Strong stakeholder expectations for continued climate leadership

Moderate expectations for climate action and transparency

Increasing pressure for climate action from key stakeholders

Critical stakeholder concerns about climate performance, potential business impact

E1: Climate Change

A - Energy and Carbon Cost Impact: How much do energy costs and carbon pricing affect your financial performance?

Energy costs <2% of revenue, benefit from carbon pricing/incentives

Energy costs 2-5% of revenue, minimal carbon pricing impact

Energy costs 5-10% of revenue, some carbon pricing exposure

Energy costs 10-20% of revenue, significant carbon pricing impact

Energy costs >20% of revenue, severe carbon pricing/regulation impact

E1: Climate Change

B - Climate Transition Risk: How could the transition to a low-carbon economy affect your business model?

Business model benefits from climate transition, new opportunities emerging

Some new opportunities, minimal transition risks

Balanced risks and opportunities from climate transition

Significant transition risks, may need to adapt business model

Fundamental business model threat from climate transition

E1: Climate Change

C - Physical Climate Risk: How could physical climate impacts affect your operations and assets?

Climate-resilient operations, may benefit from some climate changes

Low physical risk, basic adaptation measures sufficient

Moderate physical risk, some adaptation investments needed

High physical risk, significant adaptation costs required

Extreme physical risk, operations could become unviable

E1: Climate Change

D - Regulatory Preparedness: How prepared are you for current and anticipated ESG regulations affecting climate change?

Exceed all current and anticipated requirements, systems ready for future regulations

Meet current requirements, well-positioned for known upcoming regulations

Meet current requirements, some preparation needed for upcoming changes

Some compliance gaps, significant preparation needed for new requirements

Major compliance gaps, current or upcoming regulations pose serious challenges

E2: Pollution

A - Pollution Generation: How much pollution do your operations generate across all media (air, water, soil, noise)?

Zero / minimal pollution, operations improve environmental quality

Very low pollution levels, well below regulatory limits

Moderate pollution requiring active management and monitoring

Significant pollution approaching regulatory limits

High pollution levels, frequent regulatory exceedances or violations

E2: Pollution

B - Pollution Prevention Systems: How comprehensive are your pollution prevention and environmental management systems?

Comprehensive EMS (ISO 14001 or equivalent), continuous improvement, prevention focus

Good EMS, regular monitoring, proactive pollution prevention

Basic EMS, compliance-focused, some prevention measures

Minimal environmental management, reactive approach

No systematic environmental management, pollution issues not addressed

E2: Pollution

C - Ecosystem and Health Impact: How do your pollution and environmental practices affect local ecosystems and community health?

Operations enhance local environmental quality and community health

No negative impact on ecosystems or health, some positive contributions

Minimal impact on ecosystems and health with proper controls

Some negative impact on local environment or community concerns

Significant negative impact on ecosystems or community health complaints

E2: Pollution

A - Environmental Compliance Costs: What portion of your operating costs relate to environmental compliance and management?

< 1% of costs, efficient systems provide cost savings

1-3% of costs, compliance systems well-integrated

3-8% of costs, standard compliance requirements

8-15% of costs, complex compliance or past violations

> 15% of costs, severe compliance issues or cleanup requirements

E2: Pollution

B - Environmental Liability Risk: What is your potential exposure to environmental fines, cleanup costs, or litigation?

Minimal risk, excellent environmental performance record

Low risk, good compliance history and insurance coverage

Moderate risk, some past minor violations, standard insurance

High risk, past significant violations or potential contamination

Extreme risk, ongoing litigation, major cleanup liability, or regulatory enforcement

E2: Pollution

C - Regulatory Change Risk: How likely are new environmental regulations to significantly increase your costs?

Already exceed likely future standards, may benefit from stricter regulations

Well-positioned for likely regulatory changes

Some adaptation needed for anticipated regulations

Significant investments required for likely regulatory changes

Potential regulations could fundamentally challenge business viability

E2: Pollution

D - Regulatory Preparedness: How prepared are you for current and anticipated ESG regulations affecting pollution?

Exceed all current and anticipated requirements, systems ready for future regulations

Meet current requirements, well-positioned for known upcoming regulations

Meet current requirements, some preparation needed for upcoming changes

Some compliance gaps, significant preparation needed for new requirements

Major compliance gaps, current or upcoming regulations pose serious challenges

E3: Water & Marine Resources

A - Water Consumption Impact: How significant is your water consumption and its impact on local water resources?

Minimal water use, water conservation leader, may enhance local water availability

Low water use with high efficiency, no impact on local resources

Moderate water use with efficiency measures, minimal local impact

High water use, some impact on local water availability

Very high water use significantly affecting local water resources

E3: Water & Marine Resources

B - Water Quality Impact: How do your operations affect local water quality through discharge or runoff?

Operations improve water quality, treatment exceeds discharge requirements

No negative impact on water quality, high treatment standards

Minimal water quality impact with prop

Some water quality impact, approaching discharge limits

Significant water quality impact, violations or community concerns

E3: Water & Marine Resources

C - Water Source Sustainability: How sustainable and secure are your water sources?

Exclusively use renewable water sources, rainwater harvesting, closed-loop systems

Primarily renewable sources with efficient use

Mix of renewable and non-renewable sources, some efficiency measures

Primarily non-renewable water sources, limited efficiency

Heavily dependent on stressed water sources, no conservation measures

E3: Water & Marine Resources

A - Water Cost Impact: What portion of your operating costs relate to water acquisition, treatment, and discharge?

< 0.5% of costs, efficient water systems reduce costs

0.5-2% of costs, well-managed water systems

2-5% of costs, standard water management

5-10% of costs, high water consumption or treatment requirements

> 10% of costs, water-intensive operations with high treatment needs

E3: Water & Marine Resources

B - Water Security Risk: How could water shortages, quality issues, or regulatory changes affect your operations?

Water-secure operations, drought-resilient systems, regulatory advantages

Low water risk, backup systems and efficiency measures

Moderate water risk, some vulnerability to shortages or quality issues

High water risk, operations vulnerable to water stress

Extreme water risk, water constraints could shut down operations

E3: Water & Marine Resources

C - Water Infrastructure Investment: What investments in water infrastructure, efficiency, or treatment may be required?

No additional investment needed, systems provide competitive advantage

Minor investments for optimization, positive ROI expected

Moderate investments for efficiency or compliance improvements

Significant investments required for water security or compliance

Major infrastructure investments needed, potentially affecting viability

E3: Water & Marine Resources

D - Regulatory Preparedness: How prepared are you for current and anticipated ESG regulations affecting water & marine resources?

Exceed all current and anticipated requirements, systems ready for future regulations

Meet current requirements, well-positioned for known upcoming regulations

Meet current requirements, some preparation needed for upcoming changes

Some compliance gaps, significant preparation needed for new requirements

Major compliance gaps, current or upcoming regulations pose serious challenges

E4: Biodiversity & Ecosystems

A - Direct Ecosystem Impact: How do your operations directly affect local ecosystems, habitats, and wildlife?

Operations actively restore or enhance ecosystems and biodiversity

No negative impact, may provide habitat or conservation benefits

Minimal ecosystem impact with mitigation measures

Moderate ecosystem impact, requires ongoing management

Significant ecosystem damage or species/habitat loss

E4: Biodiversity & Ecosystems

B - Supply Chain Biodiversity Impact: How do your supply chains affect biodiversity through land use, resource extraction, or sourcing practices?

Supply chains actively support biodiversity conservation and regenerative practices

Sustainable sourcing with biodiversity considerations, certified materials

Some attention to supply chain biodiversity impacts

Limited knowledge of supply chain biodiversity impacts

Supply chains likely causing significant biodiversity loss

E4: Biodiversity & Ecosystems

C - Ecosystem Services Dependency: How dependent is your business on ecosystem services (pollination, water filtration, climate regulation, etc.)?

Business supports ecosystem services and is not dependent

Low dependency, business operations support ecosystem health

Moderate dependency, some ecosystem services important to operations

High dependency, ecosystem degradation would affect operations

Critical dependency, ecosystem collapse would end business operations

E4: Biodiversity & Ecosystems

A - Biodiversity Regulatory Costs: What costs do you face from biodiversity regulations, habitat protection, or species requirements?

Regulatory frameworks provide competitive advantage

Low costs, efficient compliance with conservation requirements

Moderate costs for environmental permits or habitat assessments

High costs due to protected species, wetlands, or critical habitat

Prohibitive costs from biodiversity regulations affecting business viability

E4: Biodiversity & Ecosystems

B - Ecosystem Service Value Risk: What financial risk do you face from loss of ecosystem services your business depends on?

No financial risk, operations enhance ecosystem services

Low risk, minimal dependence on ecosystem services

Moderate risk, some ecosystem services important to operations

High risk, ecosystem service loss would significantly impact costs/revenues

Extreme risk, ecosystem service collapse would end operations

E4: Biodiversity & Ecosystems

C - Natural Capital Investment: What investments in natural capital, conservation, or biodiversity may provide business value?

Natural capital investments already providing significant returns

Clear opportunities for profitable natural capital investments

Some potential for natural capital investment returns

Limited opportunities, investments primarily for compliance

No viable natural capital investment opportunities

E4: Biodiversity & Ecosystems

D - Regulatory Preparedness: How prepared are you for current and anticipated ESG regulations affecting biodiversity & ecosystems?

Exceed all current and anticipated requirements, systems ready for future regulations

Meet current requirements, well-positioned for known upcoming regulations

Meet current requirements, some preparation needed for upcoming changes

Some compliance gaps, significant preparation needed for new requirements

Major compliance gaps, current or upcoming regulations pose serious challenges

E5: Resource Use & Circular Economy

A - Resource Consumption Intensity: How much raw materials and resources does your business consume relative to output?

Circular business model, primarily recycled/renewable materials, minimal consumption

High resource efficiency, significant use of recycled materials

Moderate resource efficiency, some circular practices

Low resource efficiency, mostly virgin materials

Very high resource consumption, linear take-make-waste model

E5: Resource Use & Circular Economy

B - Waste Generation and Management: How much waste does your business generate and how effectively is it managed?

Zero waste to landfill, comprehensive circular waste management

Minimal waste generation, high recycling and reuse rates

Moderate waste with good recycling programs

Significant waste generation, basic recycling efforts

High waste generation, mostly landfilled or incinerated

E5: Resource Use & Circular Economy

C - Product Lifecycle Impact: How do your products perform across their entire lifecycle in terms of resource efficiency?

Products designed for maximum durability, repairability, and recyclability

Products have extended lifecycles with good end-of-life management

Products have standard lifecycles with some circular design features

Products have short lifecycles with limited circularity

Products designed for single use or disposal with no circular considerations

E5: Resource Use & Circular Economy

A - Resource Cost Volatility: How exposed are you to raw material price volatility and supply disruptions?

Low exposure due to circular practices, local sourcing, or stable renewable materials

Some exposure but mitigated by efficient use and supplier diversity

Moderate exposure, need to monitor material markets

High exposure, material costs significantly affect profitability

Extreme exposure, material price volatility threatens business viability

E5: Resource Use & Circular Economy

B - Circular Economy Business Opportunity: What opportunities does the circular economy present for revenue growth or cost reduction?

Circular economy is core to business model, major revenue/cost opportunities

Significant opportunities for circular business model development

Some opportunities for circular practices and cost savings

Limited circular economy opportunities in current business model

No viable circular economy opportunities, committed to linear model

E5: Resource Use & Circular Economy

C - Resource Efficiency Investment: What returns can you achieve from investments in resource efficiency and circular practices?

Resource efficiency investments provide excellent returns (> 20% IRR)

Good returns available from efficiency investments (10-20% IRR)

Moderate returns from efficiency investments (5-10% IRR)

Limited returns from efficiency investments (< 5% IRR)

No positive returns available from resource efficiency investments

E5: Resource Use & Circular Economy

D - Regulatory Preparedness: How prepared are you for current and anticipated ESG regulations affecting resource use & circular economy?

Exceed all current and anticipated requirements, systems ready for future regulations

Meet current requirements, well-positioned for known upcoming regulations

Meet current requirements, some preparation needed for upcoming changes

Some compliance gaps, significant preparation needed for new requirements

Major compliance gaps, current or upcoming regulations pose serious challenges

New Topic - "E6: Supply Chain Resilience"

This addresses the post-pandemic reality where supply chain vulnerabilities can make or break businesses. It covers dependency risks, geographic concentration, and the financial impact of disruptions.

E6: Supply Chain Resilience

A - Supply Chain Disruption Impact: How significantly do supply chain disruptions affect your ability to deliver products/services to customers?

Multiple resilient supply chains, disruptions create competitive advantage through reliability

Diversified suppliers, minimal customer impact from typical disruptions

Some supply chain vulnerabilities, occasional customer delivery delays

Limited supplier diversity, regular disruptions affect customer satisfaction

Critical single points of failure, major disruptions shut down operations

E6: Supply Chain Resilience

B - Supplier Dependency Risk: How dependent are you on critical suppliers for key inputs, services, or components?

No critical dependencies, multiple qualified suppliers for all key inputs

Some key suppliers but with qualified alternatives and backup plans

Moderate supplier dependencies with some diversification efforts

High dependency on few suppliers, limited alternatives identified

Critical dependency on single/few suppliers with no viable alternatives

E6: Supply Chain Resilience

C - Supply Chain Geographic & Geopolitical Risk: How exposed is your supply chain to geographic concentration, natural disasters, or geopolitical instability?

Geographically diversified supply chain with local/regional options, minimal geopolitical exposure

Some geographic diversification, limited exposure to unstable regions

Moderate geographic concentration, some exposure to natural disaster or political risks

High geographic concentration in vulnerable regions, significant risk exposure

Critical dependencies in high-risk geographic areas, frequent disruption potential

E6: Supply Chain Resilience

A - Supply Chain Cost Volatility: How much do supply chain disruptions, shortages, or price volatility affect your cost structure?

Supply chain practices provide cost stability and competitive advantage

Some cost volatility but well-managed through contracts and diversification

Moderate cost volatility requiring active management and monitoring

High cost volatility significantly affecting margins and pricing

Extreme cost volatility threatening profitability and cash flow

E6: Supply Chain Resilience

B - Supply Chain Investment Requirements: What investments in supply chain diversification, digitalization, or resilience may be required?

Existing supply chain investments provide excellent returns and competitive advantage

Some optimization investments needed with positive ROI expected

Moderate investments required for improved resilience and efficiency

Significant investments needed to address major supply chain vulnerabilities

Major supply chain restructuring required, potentially prohibitive costs

E6: Supply Chain Resilience

C - Business Continuity Risk: How could extended supply chain disruptions affect your business continuity and market position?

Supply chain resilience provides competitive advantage during disruptions

Good business continuity planning, minimal risk of extended disruptions

Some business continuity risk, need backup plans for key suppliers

High business continuity risk, extended disruptions would significantly impact operations

Critical business continuity risk, major disruptions could force business closure

E6: Supply Chain Resilience

D - Regulatory Preparedness: How prepared are you for current and anticipated ESG regulations affecting supply chain resilience and due diligence?

Exceed all current and anticipated requirements (EU Supply Chain Due Diligence, conflict minerals, etc.), systems ready for future regulations

Meet current requirements, well-positioned for known upcoming regulations (CSDDD, enhanced due diligence requirements)

Meet current requirements, some preparation needed for upcoming supply chain legislation

Some compliance gaps, significant preparation needed for new due diligence and resilience requirements

Major compliance gaps, current or upcoming supply chain regulations pose serious challenges

S1: Own Workforce

A - Employee Health, Safety & Well-being: How do your employment practices affect worker physical and mental health?

Workplace significantly enhances employee health and well-being, industry leader

Excellent health and safety record, proactive well-being programs

Good working conditions, standard health and safety measures

Some health and safety concerns, reactive management

Poor working conditions, frequent injuries or health issues

S1: Own Workforce

B - Skills Development & Career Growth: How effectively do you develop employee skills and provide career advancement opportunities?

Comprehensive development programs, clear career paths, high internal promotion rate

Good training programs, opportunities for advancement

Some training provided, basic development opportunities

Limited training, few advancement opportunities

Minimal skills development, no clear career progression

S1: Own Workforce

C - Diversity, Equity & Inclusion: How inclusive is your workplace and how do you address diversity and equity?

Exemplary diversity and inclusion, recognized leader, measurable equity outcomes

Strong diversity initiatives, inclusive culture, good representation

Some diversity efforts, working toward more inclusive practices

Limited diversity initiatives, some representation gaps

No diversity programs, significant representation or equity issues

S1: Own Workforce

A - Labor Cost Management: How do employee-related costs (wages, benefits, turnover, training) affect your financial performance?

Efficient workforce, low turnover costs, competitive advantage from employee satisfaction

Well-managed labor costs, stable workforce, reasonable benefits

Moderate workforce costs, some turnover management needed

High workforce costs due to turnover, recruitment difficulties, or competitive pressures

Unsustainable labor costs, chronic turnover, recruitment crisis

S1: Own Workforce

B - Skills Shortage & Talent Risk: How could difficulty finding, developing, or retaining skilled workers affect your business?

Employer of choice, no talent shortage concerns, strong pipeline

Good employer reputation, able to attract and retain talent

Some talent competition, need to maintain competitive practices

Struggling to find or keep skilled workers, affecting operations

Severe talent shortages, inability to fill critical roles, growth constraints

S1: Own Workforce

C - Employment-related Legal & Regulatory Risk: What is your exposure to employment law violations, discrimination claims, or safety penalties?

Excellent compliance record, policies exceed requirements

Good compliance, standard policies, minimal legal risk

Adequate compliance, some areas need attention

Some compliance issues, past violations or claims

Significant legal exposure, ongoing violations or major claims

S1: Own Workforce

D - Regulatory Preparedness: How prepared are you for current and anticipated ESG regulations affecting your own workforce?

Exceed all current and anticipated requirements, systems ready for future regulations

Meet current requirements, well-positioned for known upcoming regulations

Meet current requirements, some preparation needed for upcoming changes

Some compliance gaps, significant preparation needed for new requirements

Major compliance gaps, current or upcoming regulations pose serious challenges

S2: Workers in Value Chain

A - Supplier Labor Standards: What are working conditions like throughout your supply chain?

Supply chain verified to have excellent labor standards, regular audits, continuous improvement

Good supplier labor standards, some monitoring and engagement

Basic supplier standards, occasional verification

Limited knowledge of supplier labor conditions, minimal oversight

Known or suspected poor labor conditions in supply chain

S2: Workers in Value Chain

B - Human Rights Due Diligence: How comprehensive is your approach to identifying and addressing human rights risks in your supply chain?

Comprehensive human rights due diligence system, risk assessment, remediation programs

Good human rights policies and supplier requirements

Basic human rights considerations in supplier selection

Limited human rights due diligence, reactive approach

No systematic human rights risk management

S2: Workers in Value Chain

C - Supply Chain Influence & Leverage: How much influence do you have to improve labor conditions in your supply chain?

Strong influence, actively drive supply chain labor improvements, collaborative partnerships

Moderate influence, regularly discuss standards with suppliers

Some influence, occasionally address labor issues

Limited influence, mainly price-focused relationships

No leverage over suppliers, take-it-or-leave-it relationships

S2: Workers in Value Chain

A - Supply Chain Cost Impact: How would implementing higher labor standards affect your supply chain costs?

Suppliers already meet high standards, no cost impact

Minimal cost impact, suppliers competitive with good practices

Some cost increase possible but manageable

Significant cost increases required for acceptable standards

Prohibitive cost increases, would need to restructure supply chain

S2: Workers in Value Chain

B - Supply Chain Disruption Risk: How could labor disputes, human rights issues, or regulatory actions affect your supply chain?

Very low risk, excellent supplier relationships and standards

Low risk, diversified suppliers with good reputations

Moderate risk, some supplier concentration or geographic risk

High risk, dependent on suppliers with potential labor issues

Extreme risk, critical dependencies on suppliers with known problems

S2: Workers in Value Chain

C - Brand & Regulatory Risk: What is your exposure to reputational damage or regulatory action from supply chain labor issues?

Supply chain practices provide competitive advantage and brand value

Low risk, proactive supply chain management

Moderate risk, need to maintain supplier oversight

High risk, potential for negative publicity or regulatory scrutiny

Critical risk, supply chain issues could severely damage brand or trigger sanctions

S2: Workers in Value Chain

D - Regulatory Preparedness: How prepared are you for current and anticipated ESG regulations affecting your supply chain?

Exceed all current and anticipated requirements, systems ready for future regulations

Meet current requirements, well-positioned for known upcoming regulations

Meet current requirements, some preparation needed for upcoming changes

Some compliance gaps, significant preparation needed for new requirements

Major compliance gaps, current or upcoming regulations pose serious challenges

S3: Affected Communities

A - Local Economic Impact: How significantly do your operations contribute to local economic development and prosperity?

Major local economic contributor, multiplier effects, support local suppliers

Significant local employer and economic contributor

Moderate local economic contribution

Limited local economic benefit, few local connections

Minimal local economic impact, may extract value without local benefit

S3: Affected Communities

B - Community Engagement & Investment: How actively do you engage with and invest in local communities?

Deep community partnerships, significant investment, community-led development

Active community engagement, regular investment and volunteering

Some community involvement, occasional support

Limited community engagement, minimal investment

No community engagement, potential negative community impact

S3: Affected Communities

C - Social Infrastructure & Services: How do your operations affect local social infrastructure and access to services?

Operations significantly improve local infrastructure and services

Some positive contribution to local infrastructure

Neutral impact on local infrastructure

Some strain on local infrastructure or services

Significant negative impact on local infrastructure capacity

S3: Affected Communities

A - Community Relations Cost: What do you invest in community relations, local requirements, or social license to operate?

Community investment provides clear business returns

Moderate investment with good relationships, minimal ongoing costs

Standard community relations costs

High community relations costs or requirements

Excessive community costs or payments, unsustainable

S3: Affected Communities

B - Social License Risk: How could community opposition or lack of social license affect your operations?

Strong community support, social license provides competitive advantage

Good community relations, low opposition risk

Adequate community acceptance, need to maintain relationships

Some community tensions, potential for opposition

Significant community opposition, social license at risk

S3: Affected Communities

C - Local Regulatory & Political Risk: How could local government actions or political changes affect your business?

Strong local government support, political stability

Generally supportive local environment

Neutral local political environment

Some local political or regulatory uncertainty

Hostile local environment, high political risk

S3: Affected Communities

D - Regulatory Preparedness: How prepared are you for current and anticipated ESG regulations affecting this topic?

Exceed all current and anticipated requirements, systems ready for future regulations

Meet current requirements, well-positioned for known upcoming regulations

Meet current requirements, some preparation needed for upcoming changes

Some compliance gaps, significant preparation needed for new requirements

Major compliance gaps, current or upcoming regulations pose serious challenges

S4: Consumers and End-Users

A - Product Safety & Quality: How do your products or services affect customer health, safety, and well-being?

Products significantly enhance customer health, safety, and well-being

Products are safe and beneficial with proper use

Products are safe with standard precautions and instructions

Products have some safety concerns requiring careful management

Products pose significant safety or health risks

S4: Consumers and End-Users

B - Accessibility & Affordability: How accessible and affordable are your products/services to different customer segments?

Products designed for universal access, affordable pricing, special programs for disadvantaged groups

Good accessibility features, reasonable pricing, some affordability programs

Standard accessibility and pricing

Limited accessibility, higher pricing excludes some customers

Products only accessible to affluent customers, significant barriers

S4: Consumers and End-Users

C - Customer Information & Choice: How transparent and informative are you about your products' characteristics and impacts?

Comprehensive transparency, third-party certifications, full lifecycle information

Good product information, clear labeling, some impact data

Standard product information, meet disclosure requirements

Basic product information, minimal transparency

Limited transparency, customers lack information for informed choices

S4: Consumers and End-Users

A - Product Liability & Quality Costs: What do you spend on quality assurance, safety measures, and potential liability exposure?

Low costs due to excellent quality systems, liability insurance as competitive advantage

Reasonable quality costs, good safety record, standard insurance

Moderate quality assurance costs and insurance premiums

High quality costs or frequent quality issues

Excessive quality costs, major liability exposure, or quality failures

S4: Consumers and End-Users

B - Customer Satisfaction & Retention Risk: How could customer safety, satisfaction, or trust issues affect your business?

Exceptional customer satisfaction provides competitive advantage

High customer satisfaction and loyalty

Good customer relationships, standard retention rates

Some customer satisfaction issues, potential retention problems

Serious customer satisfaction problems, high churn, reputation damage

S4: Consumers and End-Users

C - Regulatory & Standards Compliance Risk: How could changing product safety, quality, or disclosure requirements affect your business?

Already exceed likely future requirements, regulations provide competitive advantage

Well-positioned for anticipated regulatory changes

Some adaptation needed for likely new requirements

Significant compliance costs for anticipated regulations

New regulations could make products unviable or require major business changes

S4: Consumers and End-Users

D - Regulatory Preparedness: How prepared are you for current and anticipated ESG regulations affecting this topic?

Exceed all current and anticipated requirements, systems ready for future regulations

Meet current requirements, well-positioned for known upcoming regulations

Meet current requirements, some preparation needed for upcoming changes

Some compliance gaps, significant preparation needed for new requirements

Major compliance gaps, current or upcoming regulations pose serious challenges

G1: Business Conduct

A - Ethical Business Practices: How do your business practices affect trust, fairness, and market integrity?

Exemplary ethical standards, industry leader, enhance market trust

High ethical standards, contribute to positive business environment

Good ethical practices, meet professional standards

Some ethical concerns, occasional questionable practices

Significant ethical issues, practices undermine market trust

G1: Business Conduct

B - Transparency & Accountability: How transparent and accountable are you to stakeholders about your business practices and performance?

Exceptional transparency, proactive disclosure, stakeholder engagement

High transparency, regular reporting, responsive to stakeholder concerns

Standard transparency, meet disclosure requirements

Limited transparency, minimal voluntary disclosure

Poor transparency, avoid disclosure, not responsive to stakeholders

G1: Business Conduct

C - Anti-corruption & Fair Competition: How robust are your systems for preventing corruption and ensuring fair competition?

Comprehensive anti-corruption systems, promote fair competition

Good governance systems, clear policies, regular training

Basic governance systems, standard policies

Minimal governance systems, some policy gaps

Weak governance, potential corruption or anti-competitive risks

G1: Business Conduct

A - Compliance & Legal Risk Management Costs: What do you spend on legal compliance, risk management, and governance systems?

Efficient compliance systems provide competitive advantage

Reasonable compliance costs, well-managed systems

Standard compliance costs and risk management

High compliance costs, complex requirements, or past issues

Excessive compliance costs, major legal exposures, ongoing violations

G1: Business Conduct

B - Reputational Risk: How could ethical lapses, governance failures, or legal issues affect your business reputation and relationships?

Ethical reputation provides significant competitive advantage

Good reputation, ethical practices support business development

Standard reputation, need to maintain good practices

Some reputation vulnerabilities, past issues or industry concerns

Major reputation risks, ethical issues could severely damage business

G1: Business Conduct

C - Regulatory & Legal Environment Risk: How could changes in laws, regulations, or enforcement affect your business operations?

Regulatory changes likely to benefit business, strong compliance culture

Well-positioned for regulatory evolution

Some adaptation needed for changing regulatory environment

Significant regulatory risks, major compliance challenges likely

Regulatory environment threatens business model viability

G1: Business Conduct

D - Regulatory Preparedness: How prepared are you for current and anticipated ESG regulations affecting this topic?

Exceed all current and anticipated requirements, systems ready for future regulations

Meet current requirements, well-positioned for known upcoming regulations

Meet current requirements, some preparation needed for upcoming changes

Some compliance gaps, significant preparation needed for new requirements

Major compliance gaps, current or upcoming regulations pose serious challenges

New Topic - "G2: Digital Security & Privacy"

Many ESG specialists, including us, feel that there is a gap in the current ESRS framework. It partially fits in G1: Business Conduct (covers some aspects like data ethics, transparency), S4: Consumers and End-Users (Product safety and information disclosure) and S1: Own Workforce: Employee data protection. However none fully capture the breadth and digital / cyber materiality. It is treated as a standalone topic because:

1. Materiality Scope is Unique

Impact Materiality: Affects all stakeholders (employees, customers, communities, suppliers)
Financial Materiality: Creates distinct risk/opportunity profile
Regulatory Materiality: Subject to specific regulations (GDPR, NIS2, Cyber Resilience Act)

2. Cross-Cutting Nature

Digital security touches every ESG topic:

Environmental: Data center energy consumption, e-waste
Social: Digital inclusion, privacy rights, algorithmic bias
Governance: Data governance, cyber risk management

3. Emerging Regulatory Focus

EU is developing cyber/digital sustainability requirements that will likely become separate ESRS topics:

NIS2 Directive (critical infrastructure cybersecurity)
Digital Services Act (platform responsibilities)
AI Act (algorithmic accountability)
Cyber Resilience Act (product cybersecurity)

G2: Digital Security & Privacy

A - Data Protection Impact: How do your data collection and processing practices affect stakeholder privacy and security?

Exemplary data protection, privacy-by-design, enhance stakeholder trust

Strong data protection, exceed minimum requirements

Good data protection, meet regulatory requirements

Basic data protection, some privacy concerns

Poor data protection, significant privacy risks

G2: Digital Security & Privacy

B - Cybersecurity Resilience: How robust are your systems against cyber threats and data breaches?

Advanced cybersecurity, industry-leading practices, support ecosystem security

Strong cybersecurity with regular updates and monitoring

Standard cybersecurity measures, basic protection

Limited cybersecurity, some vulnerabilities

Weak cybersecurity, high breach risk

G2: Digital Security & Privacy

C - Digital Inclusion: How do your digital practices support or hinder stakeholder digital inclusion?

Actively promote digital inclusion, accessible digital services

Consider digital inclusion, accessible design

Standard digital practices, basic accessibility

Limited consideration of digital inclusion

Digital practices create barriers or exclusion

G2: Digital Security & Privacy

A - Cybersecurity Investment & Insurance Costs: What do you spend on cybersecurity and cyber insurance?

Efficient cybersecurity investment with positive ROI

Reasonable cybersecurity costs, adequate protection

Standard cybersecurity investment and insurance

High cybersecurity costs, frequent updates needed

Inadequate cybersecurity investment, high breach risk

G2: Digital Security & Privacy

B - Digital Disruption Risk: How could digital transformation or cyber incidents affect your business?

Digital transformation provides competitive advantage

Well-positioned for digital evolution

Some digital adaptation needed

Significant digital disruption risk

Digital changes threaten business viability

G2: Digital Security & Privacy

C - Data Compliance Costs: What costs do you face from data protection regulations?

Data practices exceed requirements, compliance provides advantage

Reasonable compliance costs, efficient systems

Standard data compliance costs

High compliance costs, complex requirements

Excessive compliance costs, major penalties risk

G2: Digital Security & Privacy

D - Regulatory Preparedness: How prepared are you for current and anticipated digital/privacy regulations?

Exceed all requirements, ready for future regulations

Meet requirements, well-positioned for changes

Meet requirements, some preparation needed

Some compliance gaps, significant preparation needed

Major compliance gaps, regulations pose serious challenges

New Topic - "G3: Transition Planning"

Essential for CSRD compliance, this topic evaluates how well companies plan and execute their sustainability transitions, including stakeholder alignment and implementation capacity.

G3: Transition Planning

A - Sustainability Transition Strategy: How comprehensive is your strategy for transitioning to sustainable business practices across environmental and social dimensions?

Comprehensive transition strategy with clear targets, timelines, and accountability, industry leadership

Well-developed transition plan with specific goals and implementation roadmap

Basic transition strategy with some goals and plans for key areas

Limited transition planning, mainly reactive to regulatory requirements

No systematic transition strategy, ad-hoc approach to sustainability

G3: Transition Planning

B - Stakeholder Alignment on Transition: How well do your transition plans align with stakeholder expectations and requirements?

Transition plans co-developed with stakeholders, exceed expectations, drive industry standards

Good stakeholder engagement in transition planning, plans meet most expectations

Some stakeholder input considered, plans address main concerns

Limited stakeholder engagement, plans may not meet some expectations

No stakeholder engagement in transition planning, significant expectation gaps

G3: Transition Planning

C - Transition Implementation Capacity: How capable is your organization of implementing and monitoring your sustainability transition?

Excellent implementation capacity, dedicated resources, proven track record

Good implementation capacity with adequate resources and skills

Basic implementation capacity, some resource constraints

Limited implementation capacity, significant resource or skill gaps

Inadequate implementation capacity, major barriers to executing transition

G3: Transition Planning

A - Transition Investment Requirements: What level of investment is required to implement your sustainability transition plans?

Transition investments provide immediate returns and competitive advantage

Moderate investments with clear business case and positive ROI

Significant investments needed but manageable within business planning

High investment requirements straining financial resources

Prohibitive investment requirements potentially threatening business viability

G3: Transition Planning

B - Transition-related Revenue Opportunities: What revenue opportunities arise from your sustainability transition (new products, markets, customer segments)?

Transition opens major new revenue streams, first-mover advantage

Clear revenue opportunities from sustainable products/services

Some revenue opportunities identified, need development

Limited revenue opportunities from transition

No viable revenue opportunities from sustainability transition

G3: Transition Planning

D - Regulatory Preparedness: How prepared are you for current and anticipated ESG regulations affecting transition planning and climate disclosure?

Exceed all current and anticipated requirements (CSRD transition plans, EU Taxonomy alignment, etc.), systems ready for future regulations

Meet current requirements, well-positioned for known upcoming regulations (CSRD implementation, enhanced transition planning requirements)

Meet current requirements, some preparation needed for upcoming transition planning and disclosure regulations

Some compliance gaps, significant preparation needed for new transition planning and climate disclosure requirements

Major compliance gaps, current or upcoming transition planning regulations pose serious challenges

New Topic - "G4: Stakeholder Engagement Depth"

Goes beyond basic stakeholder communication to assess the quality and business impact of stakeholder relationships, which is fundamental to ESRS requirements.

G4: Stakeholder Engagement Depth

A - Stakeholder Identification & Prioritization: How comprehensive is your identification and prioritization of stakeholders affected by your business?

Comprehensive stakeholder mapping including indirect stakeholders, regular reassessment

Good stakeholder identification covering key affected parties

Basic stakeholder identification focusing on primary stakeholders

Limited stakeholder identification, mainly regulatory/contractual stakeholders

No systematic stakeholder identification, reactive engagement only

G4: Stakeholder Engagement Depth

B - Stakeholder Engagement Quality: How meaningful and effective is your engagement with key stakeholders?

Deep, ongoing partnerships with stakeholders, co-creation and shared governance

Regular, meaningful dialogue with stakeholders, responsive to concerns

Standard stakeholder engagement, periodic consultation and communication

Limited engagement, mainly one-way communication or crisis response

Minimal stakeholder engagement, poor communication and responsiveness

G4: Stakeholder Engagement Depth

C - Stakeholder Influence on Decision-Making: How do stakeholder inputs influence your business decisions and strategy?

Stakeholder inputs systematically integrated into strategy and decision-making

Stakeholder feedback regularly considered in key decisions

Some stakeholder input considered for major decisions

Limited stakeholder influence, mainly for compliance or PR purposes

No systematic stakeholder influence on business decisions

G4: Stakeholder Engagement Depth

A - Stakeholder Engagement Costs: What do you invest in stakeholder engagement activities, consultation processes, and relationship management?

Stakeholder engagement investments provide excellent returns through better decisions and support

Reasonable engagement costs with clear benefits for business relationships

Standard engagement costs, part of normal business operations

High engagement costs due to complex stakeholder requirements

Excessive engagement costs, unsustainable stakeholder demands

G4: Stakeholder Engagement Depth

B - Stakeholder-related Business Risk: How could stakeholder opposition, withdrawal of support, or conflict affect your business operations?

Strong stakeholder support provides competitive advantage and business resilience

Good stakeholder relationships, low risk of opposition or withdrawal

Adequate stakeholder support, need to maintain relationships

Some stakeholder tensions, potential for opposition affecting operations

Significant stakeholder opposition risk, could shut down operations or access

G4: Stakeholder Engagement Depth

D - Regulatory Preparedness: How prepared are you for current and anticipated ESG regulations affecting stakeholder engagement and disclosure?

Exceed all current and anticipated requirements (CSRD stakeholder engagement, due diligence directives, etc.), systems ready for future regulations

Meet current requirements, well-positioned for known upcoming regulations (enhanced stakeholder consultation requirements, mandatory engagement standards)

Meet current requirements, some preparation needed for upcoming stakeholder engagement and disclosure regulations

Some compliance gaps, significant preparation needed for new stakeholder engagement and consultation requirements

Major compliance gaps, current or upcoming stakeholder engagement regulations pose serious challenges

Industry-Specific Questions

Select which sector you are in

S4: Consumers and End-users

AGR.I.1. Nutritional Impact: How do your products contribute to healthy diets and address nutritional needs?

Products significantly improve nutrition, address malnutrition, promote health

Products provide good nutrition, support healthy diets

Products meet basic nutritional needs, neutral health impact

Products may contribute to nutritional concerns (high sodium, sugar, processing)

Products significantly contribute to diet-related health problems

E4: Biodiversity & Ecosystems

AGR.I.2. Food System Sustainability: How do your practices contribute to long-term food system sustainability and resilience?

Practices significantly enhance food system sustainability and resilience

Good sustainable practices, contribute to system health

Standard practices, neutral impact on food system sustainability

Some practices may undermine food system sustainability

Practices significantly harm food system sustainability

S3: Affected Communities

AGR.I.3. Food Security & Access: How do your operations affect food security and access for different populations?

Significantly improve food security and access, especially for vulnerable populations

Contribute to food security, accessible products

Neutral impact on food security and access

May limit food access for some populations

Practices or pricing significantly harm food security

S4: Consumers and End-users

AGR.F.1. Food Safety & Quality Systems: What do you invest in food safety, quality control, and traceability systems?

Excellent systems provide competitive advantage, premium pricing

Good food safety systems, reasonable costs, customer confidence

Standard food safety compliance, moderate costs

High food safety costs or frequent quality issues

Major food safety exposures, inadequate systems, high liability risk

S4: Consumers and End-users

AGR.F.2. Regulatory & Standards Compliance: How could changing food regulations, labeling requirements, or health standards affect your business?

Well-positioned for regulatory evolution, may benefit from stricter standards

Good compliance capabilities, able to adapt to changes

Some adaptation needed for changing requirements

Significant compliance challenges from likely regulatory changes

Potential regulations could require major business model changes

S4: Consumers and End-users

AGR.F.3. Consumer Preference & Market Trends: How could changing consumer preferences toward healthy, sustainable food affect your market position?

Products align perfectly with consumer trends, gaining market share

Well-positioned for consumer preference evolution

Need some adaptation to maintain market position

Consumer trends may reduce demand for current products

Consumer preferences shifting strongly away from business model

E4: Biodiversity & Ecosystems

AGR.I.4. Biodiversity & Ecosystems: How do your agricultural practices affect biodiversity, soil health, and ecosystem services?

Regenerative practices significantly enhance biodiversity and ecosystem health

Sustainable practices protect biodiversity, improve soil health

Practices maintain biodiversity with some conservation measures

Intensive practices with some negative biodiversity impacts

Practices significantly harm biodiversity and ecosystem services

E5: Resource Use & Circular Economy

AGR.I.5. How effectively do you manage agricultural waste and implement circular practices?

Comprehensive circular systems, zero waste, soil regeneration

Good waste management, significant recycling and reuse

Standard waste management with some circular practices

Limited waste reduction, some recycling efforts

High waste generation, minimal circular economy practices

E1: Climate Change

CON.I.1. - Building Environmental Performance: How do the buildings you create or manage perform in terms of energy efficiency, water use, and environmental impact?

Buildings achieve net-positive environmental impact, exceed green building standards

High-performance buildings with green certifications (LEED, BREEAM, etc.)

Buildings meet current energy codes with some efficiency features

Buildings meet minimum codes but limited efficiency measures

Buildings have poor environmental performance, high resource consumption

E5: Resource Use & Circular Economy

CON.I.2. - Construction Process Impact: How sustainable are your construction processes and material choices?

Highly sustainable construction, recycled/renewable materials, minimal waste

Good sustainable practices, some green materials, waste reduction

Standard construction practices with some sustainability measures

Traditional construction methods, limited sustainability consideration

Construction practices with significant environmental and social impacts

S4: Consumers and End-users

CON.I.3. - Building Health & Safety: How do your buildings affect occupant health, safety, and well-being?

Buildings significantly enhance occupant health and well-being

Buildings provide healthy indoor environments, good safety standards

Buildings meet health and safety codes, standard indoor quality

Buildings have some indoor quality or safety concerns

Buildings pose health or safety risks to occupants

E1: Climate Change

CON.F.1. Green Building Premium & Operating Costs: What are the cost implications of sustainable building practices and performance?

Green buildings provide significant cost savings and premium pricing

Sustainable practices provide net positive returns

Moderate cost premium offset by operational savings

Higher upfront costs with uncertain returns

Sustainable practices significantly increase costs with no financial return

E1: Climate Change

CON.F.2. Building Code & Regulatory Evolution: How could evolving building codes and sustainability requirements affect your projects?

Already exceed anticipated future requirements, competitive advantage

Well-positioned for likely code changes

Some adaptation needed for evolving requirements

Significant compliance costs for anticipated code changes

Future building codes could make current practices unviable

S4: Consumers and End-Users

CON.F3. Market Demand for Sustainable Buildings: How could changing tenant/buyer preferences for sustainable buildings affect your business?

Strong market advantage from sustainable building expertise

Good market position, sustainable buildings in demand

Some market preference for sustainability, competitive factor

Limited market demand for sustainability, price-sensitive market

Market shows little interest in sustainable buildings

E5: Resource Use & Circular Economy

CON.I.4. Resource Efficiency: How much construction and demolition waste do you generate and how effectively do you manage it?

Zero waste construction, comprehensive material reuse and recycling

Minimal waste generation, high recycling rates, material recovery

Moderate waste with good management and recycling program

Significant waste generation, basic recycling efforts

High waste generation, mostly landfilled, inefficient material use

S3: Affected Communities

CON.I.5. Community Impact: How do your construction/development projects affect local communities during and after completion?

Projects significantly enhance community infrastructure and quality of life

Positive community impact, good stakeholder engagement

Neutral community impact with basic engagement

Some negative community impacts during construction

Significant negative impacts on local communities

G1: Business Conduct

FIN.I1. ESG Risk Assessment in Lending/Investment: How do you assess and manage environmental, social, and governance risks in your financial products?

Comprehensive ESG integration, leading sustainable finance practices

Good ESG risk assessment, sustainable finance products available

Basic ESG considerations in risk assessmen

Limited ESG integration, traditional risk focus

No ESG risk consideration, potential exposure to stranded assets

G1: Business Conduct

FIN.I2. Client/Portfolio Sustainability Impact: What is the environmental and social impact of the businesses and projects you finance?

Portfolio actively supports sustainable development, positive impact measurement

Portfolio generally aligned with sustainability goals

Mixed portfolio with some sustainability considerations

Portfolio includes some high ESG risk sectors/projects

Portfolio heavily exposed to unsustainable or harmful activities

S3: Affected Communities

FIN.I3. Financial Inclusion & Accessibility: How accessible are your financial services to different segments of society?

Comprehensive financial inclusion programs, serve underbanked populations

Good accessibility, affordable products for diverse customers

Standard accessibility, serve mainstream market segments

Limited accessibility, mainly serve affluent customers

Exclusive focus on high-net-worth clients, limited accessibility

E1: Climate Change

FIN.F1. Climate & ESG-related Financial Risk: How could climate change and ESG factors affect your loan/investment portfolio performance?

Portfolio positioned to benefit from sustainability transition

Low ESG risk exposure, proactive risk management

Moderate ESG risk exposure, standard risk monitoring

High ESG risk exposure, potential for significant losses

Major exposure to stranded assets or climate-vulnerable sectors

G1: Business Conduct

FIN.F2. Regulatory & Disclosure Requirements: How could evolving sustainable finance regulations and disclosure requirements affect your operations?

Already exceed likely future requirements, competitive advantage

Well-prepared for regulatory evolution

Some adaptation needed for new requirements

Significant compliance costs for anticipated regulations

Regulatory changes could require major business model adaptation

S4: Consumers and End-Users

FIN.F3. Market Demand for Sustainable Finance: How could growing demand for ESG-aligned financial products affect your market position?

Market leader in sustainable finance, strong competitive position

Good sustainable finance capabilities, growing market share

Developing sustainable finance offerings

Limited sustainable finance capabilities, losing market share

No sustainable finance strategy, market demand threatens traditional business

G1: Business Conduct

FIN.I4. Business Ethics: How do your lending and investment practices affect market integrity and economic development?

Practices significantly enhance market integrity and sustainable economic development

Ethical practices support healthy financial markets

Standard ethical practices, neutral market impact

Some practices may undermine market integrity

Practices contribute to financial instability or economic harm

S4: Consumers and End-Users

FIN.F4. Product Responsibility: How could misselling, unsuitable products, or customer detriment affect your business?

Excellent customer outcomes, product suitability provides competitive advantage

Good customer focus, appropriate product design and sales

Standard customer protection, adequate suitability processes

Some customer detriment issues, regulatory concerns

Significant misselling risks, poor customer outcomes, regulatory action

S3: Affected Communities

HEA.I1. Healthcare Access & Equity: How do your services affect healthcare access and equity for different populations?

Significantly improve healthcare access, especially for underserved populations

Good healthcare access, serve diverse patient populations

Provide standard healthcare services to typical patients

Limited access for some populations, barriers to care

Healthcare services only accessible to affluent patients

S4: Consumers and End-users

HEA I2. Patient Safety & Care Quality: How do your practices affect patient safety, care quality, and health outcomes?

Exceptional patient safety and care quality, measurably improve health outcomes

High safety standards, good care quality, positive patient outcomes

Standard safety and quality measures, adequate patient outcomes

Some safety or quality concerns, variable patient outcomes

Significant safety issues or poor care quality affecting patient outcomes

S3: Affected Communities

HEA I3. Health System Sustainability: How do your practices contribute to long-term healthcare system sustainability and resilience?

Practices significantly enhance healthcare system sustainability and efficiency

Good practices support sustainable healthcare delivery

Standard practices, neutral impact on system sustainability

Some practices may strain healthcare system resources

Practices significantly burden healthcare system sustainability

S4: Consumers and End-users

HEA.F1. Healthcare Regulation & Compliance: What do you spend on healthcare regulation compliance, quality assurance, and safety measures?

Efficient compliance systems provide competitive advantage

Reasonable compliance costs, good safety record

Standard healthcare compliance costs

High compliance costs due to complex regulations or past issues

Excessive compliance costs, major regulatory exposures

S4: Consumers and End-users

HEA.F2. Professional Liability & Safety Risk: What is your exposure to medical malpractice, patient safety incidents, or quality failures?

Excellent safety record, low liability risk, competitive insurance rates

Good safety practices, standard liability management

Adequate safety measures, reasonable liability exposure

Some safety concerns, elevated liability risk

Major safety issues, high liability exposure, insurance difficulties

G1: Business Conduct

HEA.F3. Healthcare Market & Reimbursement Changes: How could changes in healthcare policy, reimbursement, or market structure affect your business?

Well-positioned for healthcare evolution, may benefit from reforms

Adaptable to healthcare market changes

Some adaptation needed for changing healthcare environment

Vulnerable to healthcare policy or reimbursement changes

Healthcare reforms could fundamentally threaten business model

S1: Own Workforce

HEA.I4. Workforce Development: How do your employment practices affect healthcare worker well-being and capacity?

Exceptional healthcare worker support, address burnout, competitive advantage

Good workforce support, reasonable working conditions

Standard healthcare employment practices

Some workforce stress, limited support for worker well-being

Poor working conditions contributing to healthcare worker shortage

S4: Consumers and End-Users 

HEA.I5. Product Responsibility: How do your healthcare products or devices affect patient safety and treatment outcomes?

Products significantly improve patient safety and treatment outcomes

High-quality products with good safety profiles

Standard quality products meeting regulatory requirements

Some product quality or safety concerns

Significant product safety issues affecting patient outcomes

E4: Biodiversity & Ecosystems

HOS.I1. Tourism Carrying Capacity & Environmental Impact: How do your operations affect local environmental carrying capacity and natural resources?

Operations actively enhance local environment, regenerative tourism model

Minimal environmental impact, support conservation efforts

Moderate environmental impact with mitigation measures

Significant environmental impact, approaching carrying capacity limits

Operations exceed environmental carrying capacity, causing degradation

S3: Affected Communities

HOS.I2. Cultural Heritage & Community Relations: How do your operations affect local cultural heritage and community life?

Operations actively preserve and celebrate local culture, authentic community partnerships

Respectful cultural engagement, support local heritage preservation

Standard cultural consideration, some local engagement

Limited cultural sensitivity, potential for cultural commodification

Operations undermine local culture or cause community disruption

S3: Affected Communities

HOS.I3. Local Economic Distribution: How effectively do your operations distribute economic benefits throughout the local community?

Comprehensive local economic integration, equitable benefit distribution

Good local sourcing and employment, reasonable benefit distribution

Some local economic benefits, moderate community integration

Limited local economic integration, benefits concentrated

Minimal local economic benefit, extractive business model

S3: Affected Communities

HOS.F1. Destination Reputation & Overtourism Risk: How could destination degradation or overtourism concerns affect your business?

Sustainable practices provide competitive advantage, destination protection

Good destination stewardship, low overtourism risk

Moderate destination risks, need to monitor carrying capacity

High risk from destination degradation or overtourism

Business model depends on unsustainable tourism levels

E1: Climate Change

HOS.F2. Climate & Seasonal Vulnerability: How could climate change and extreme weather events affect your operations?

Climate-resilient operations, may benefit from some climate changes

Low climate vulnerability, basic adaptation measures

Moderate climate risks, some adaptation investments needed

High climate vulnerability, significant adaptation costs required

Extreme climate vulnerability, operations may become unviable

E1: Climate Change

HOS.F3. Customer Preference for Sustainable Tourism: How could growing demand for sustainable travel experiences affect your market position?

Market leader in sustainable tourism, strong competitive advantage

Good sustainability positioning, growing market appeal

Developing sustainability credentials

Limited sustainability offerings, potential market disadvantage

Traditional tourism model increasingly unappealing to conscious travelers

E3: Water & Marine Resources

HOS.I4. Water Stewardship: How significant is your water consumption and impact on local water resources?

Water conservation leader, may enhance local water availability

Efficient water use, no impact on local resources

Moderate water use with conservation measures

High water use in water-stressed location

Excessive water consumption significantly affecting local availability

S1: Own Workforce

HOS.F4. Workforce Development: How do seasonal employment patterns and hospitality working conditions affect your labor costs?

Excellent employer reputation, stable workforce, competitive advantage

Good employment practices, reasonable labor costs

Standard hospitality employment, moderate turnover costs

High turnover costs, difficult recruitment, service quality issues

Chronic labor shortages, unsustainable turnover, service failures

E5: Resource Use & Circular Economy

MAN.I1. Manufacturing Process Innovation: How do your manufacturing technologies and processes affect environmental and social outcomes?

Cutting-edge clean technology, Industry 4.0 implementation, positive environmental impact

Advanced manufacturing with good environmental performance

Standard manufacturing technology with some efficiency measures

Older technology with limited efficiency, some environmental impact

Outdated technology with significant environmental and safety concerns

E5: Resource Use & Circular Economy

MAN.I2. Product Design & Lifecycle Impact: How do your products perform across their entire lifecycle in terms of environmental and social impact?

Products designed for maximum sustainability, positive lifecycle impact

Products have good lifecycle performance, design for environment principles

Standard product design with some lifecycle considerations

Products have moderate lifecycle impacts, limited design optimization

Products designed without lifecycle consideration, significant end-of-life impacts

S1: Own Workforce

MAN.I3. Industrial Workforce Transition: How do technological changes in your operations affect worker skills, employment, and well-being?

Technology enhances worker capabilities, comprehensive retraining, improved working conditions

Good management of technology transition, worker development programs

Standard technology adoption with some worker support

Technology changes create some workforce displacement or skill gaps

Technology adoption without worker consideration, significant job displacement

E5: Resource Use & Circular Economy

MAN.F1. Technology Investment & Competitive Position: What investments in new technology, automation, or digitalization may be required to remain competitive?

Technology investments providing significant competitive advantage and returns

Good technology position, positive ROI from recent investments

Moderate technology investments needed to maintain competitiveness

Significant technology upgrades required, uncertain returns

Major technology transformation needed, potentially prohibitive costs

E1: Climate Change

MAN.F2. Industry Transition & Stranded Assets: How could industry transformation toward sustainability affect your assets and market position?

Technology investments providing significant competitive advantage and returns

Good technology position, positive ROI from recent investments

Moderate technology investments needed to maintain competitiveness

Significant technology upgrades required, uncertain returns

Major technology transformation needed, potentially prohibitive costs

E5: Resource Use & Circular Economy

MAN.F3. Supply Chain Resilience & Localization: How could supply chain disruptions or reshoring trends affect your operations?

Resilient, diversified supply chain, competitive advantage from localization

Good supply chain resilience, some local sourcing

Moderate supply chain risks, standard diversification

High supply chain concentration, vulnerable to disruptions

Critical supply chain dependencies, severe disruption risk

E2: Pollution

MAN.I4. Pollution Prevention: How much industrial pollution do your manufacturing operations generate?

Zero emission manufacturing, operations improve environmental quality

Very low emissions, best-in-class pollution control

Moderate emissions requiring active management

Significant emissions approaching regulatory limits

High emissions, frequent violations or community complaints

E5: Resource Use & Circular Economy 

MAN.I5. Resource Efficiency: How efficiently do you use raw materials and energy in your manufacturing processes?

Highly efficient processes, circular manufacturing, minimal waste

Good efficiency, significant waste reduction and recycling

Moderate efficiency with improvement programs

Low efficiency, high material and energy consumption

Very inefficient processes, linear production model

S4: Consumers and End-Users

PRO.I1. Service Quality & Professional Standards: How do your professional services affect client outcomes and professional standards in your field?

Exceptional service quality, advance professional standards, measurably improve client outcomes

High service quality, uphold professional standards, good client outcomes

Standard service quality, meet professional requirements

Some service quality concerns, potential professional standard issues

Poor service quality, undermine professional standards or client outcomes

G1: Business Conduct

PRO.I2. Knowledge Transfer & Capacity Building: How do your services build client capacity and contribute to knowledge transfer?

Comprehensive capacity building, knowledge transfer core to service model

Good knowledge transfer, clients develop internal capabilities

Some knowledge transfer, standard consulting approach

Limited knowledge transfer, client dependency model

No knowledge transfer, creates client dependency without capacity building

G1: Business Conduct

PRO.I3. Digital Technology & Data Responsibility: How responsibly do you handle client data and deploy digital technologies?

Exemplary data protection, ethical AI/technology use, privacy by design

Strong data protection, responsible technology deployment

Standard data protection, basic technology governance

Some data protection concerns, limited technology governance

Poor data handling, irresponsible technology use

G1: Business Conduct

PRO.F1. Professional Liability & Quality Risk: What is your exposure to professional liability, errors and omissions, or service quality failures?

Excellent service record, low liability risk, competitive insurance rates

Good service quality, standard liability management

Adequate quality controls, reasonable liability exposure

Some quality issues, elevated liability risk

Significant service failures, high liability exposure

S4: Consumers and End-Users

PRO.F2. Technology Disruption & Service Evolution: How could automation, AI, or new technologies affect demand for your services?

Technology enhances service capability, creates new opportunities

Good adaptation to technology trends, service evolution underway

Some technology adoption needed, moderate disruption risk

High disruption risk, significant service model changes needed

Technology could eliminate demand for core services

G1: Business Conduct

PRO.F3. Regulatory & Professional Standards Evolution: How could changing regulations or professional standards affect your business?

Well-positioned for regulatory evolution, may benefit from higher standards

Good compliance capabilities, able to adapt to changes

Some adaptation needed for evolving standards

Significant compliance challenges from likely changes

Regulatory evolution could require major business model changes

S1: Own Workforce

PRO.I4. Workforce Development: How effectively do you develop employee skills and provide career advancement in knowledge work?

Comprehensive professional development, clear advancement paths, industry leadership

Strong development programs, good career opportunities

Standard professional development, basic advancement opportunities

Limited development investment, few advancement paths

Minimal professional development, no clear career progression

G1: Business Conduct

PRO.I5. Regulatory & Professional Standards Evolution: How could changing regulations or professional standards affect your business?

Services actively promote ethical business practices and stakeholder consideration

Good ethical guidance, professional integrity in advice

Standard professional advice, neutral ethical impact

Some advice may not consider broader stakeholder impacts

Advice focuses solely on client interests without ethical considerations

E5: Resource Use & Circular Economy

RET.I1. Product Sustainability & Lifecycle Impact: How sustainable are the products you sell across their entire lifecycle?

Portfolio focused on highly sustainable products, positive lifecycle impact

Many sustainable product options, good lifecycle performance

Mix of products with some sustainability features

Limited sustainable options, standard lifecycle performance

Product portfolio with significant negative lifecycle impacts

S4: Consumers and End-users

RET.I2. Consumer Behavior Influence: How do your marketing, pricing, and product placement influence sustainable consumption patterns?

Actively promote sustainable consumption, education and behavior change

Support sustainable choices, highlight eco-friendly options

Neutral approach, standard retail practices

Some practices may discourage sustainable consumption

Marketing and practices actively promote overconsumption

E5: Resource Use & Circular Economy

RET.I3. Packaging & Waste Impact: How much packaging waste do your products generate and how sustainable is your packaging?

Minimal packaging, fully sustainable/reusable packaging, take-back programs

Reduced packaging, mostly sustainable materials, some circularity

Standard packaging with some sustainable features

Excessive packaging, limited sustainable materials

High packaging waste, non-sustainable materials, no waste reduction

S4: Consumers and End-users

RET.F1. Consumer Preference for Sustainability: How could growing consumer demand for sustainable products affect your sales and market position?

Strong market position from sustainable product focus

Good sustainability credentials, growing consumer appeal

Developing sustainable product offerings

Limited sustainability positioning, potential competitive disadvantage

Product portfolio misaligned with sustainability trends

E5: Resource Use & Circular Economy

RET.F2. Packaging & Waste Regulation: How could extended producer responsibility, packaging taxes, or waste regulations affect your costs?

Efficient packaging already compliant with likely future regulations

Some adaptation needed but manageable costs

Moderate compliance costs for anticipated regulations

Significant packaging and waste compliance costs expected

Potential regulations could require major packaging and business model changes

S2: Workers in Value Chain

RET.F3. Supply Chain Sustainability Premiums: How could demand for sustainable supply chains affect your sourcing costs and supplier relationships?

Sustainable supply chains provide cost advantages and resilience

Some premium for sustainability offset by other benefits

Moderate sustainability premiums, manageable cost increases

High sustainability premiums, significant cost pressure

Sustainable sourcing requirements could dramatically increase costs

S2: Workers in Value Chain

RET.I4. Supply Chain Labor: What are working conditions like in your global retail supply chain?

Exemplary supply chain labor standards, regular audits, worker empowerment

Good supplier labor standards with monitoring and support

Basic labor standards with periodic verification

Limited oversight of supplier labor conditions

Known or suspected poor labor conditions in supply chain

E5: Resource Use & Circular Economy

RET.F4. Resource Efficiency: How exposed are you to raw material and commodity price volatility?

Low exposure through sustainable sourcing and long-term partnerships

Strong privacy protection, transparent data practices

Standard privacy measures, basic user control

High exposure, commodity costs significantly affect margins

Extreme exposure, price volatility threatens business viability

G1: Business Conduct

TEC.I1. Data Privacy & Digital Rights: How do your technology products and services affect user privacy and digital rights?

Privacy by design, user empowerment, advance digital rights standards

Strong privacy protection, transparent data practices

Standard privacy measures, basic user control

Some privacy concerns, limited user control over data

Poor privacy protection, extensive data collection without clear user benefit

G1: Business Conduct

TEC.I2. Algorithmic Fairness & AI Ethics: How do your algorithms and AI systems affect fairness, bias, and equitable outcomes?

Comprehensive AI ethics framework, bias testing, equitable outcomes

Good AI governance, regular bias auditing, fair algorithms

Basic AI ethics considerations, some bias monitoring

Limited AI ethics oversight, potential bias issues

No AI ethics framework, algorithms may perpetuate or amplify bias

S4: Consumers and End-Users

TEC.I3. Digital Inclusion & Accessibility: How accessible are your technology products to users with different abilities and technical literacy levels?

Universal design principles, exceptional accessibility, digital inclusion leader

Good accessibility features, considerate of diverse user needs

Standard accessibility compliance, some inclusive design

Limited accessibility features, barriers for some users

Poor accessibility, products exclude users with disabilities or limited technical skills

G1: Business Conduct

TEC.F1. Technology Ethics & Regulatory Risk: How could data protection regulations, AI governance, or technology ethics requirements affect your business?

Ethical technology practices provide competitive advantage

Good compliance position, manageable regulatory adaptation

Some compliance investments needed for evolving regulations

Significant regulatory compliance costs and business changes required

Technology ethics regulations could fundamentally challenge business model

G1: Business Conduct

TEC.F2. Cybersecurity & Data Breach Risk: What is your exposure to cybersecurity incidents, data breaches, or system failures?

Excellent cybersecurity, incident response provides competitive advantage

Strong cybersecurity measures, low breach risk

Standard cybersecurity, adequate protection and insurance

Some cybersecurity vulnerabilities, elevated risk exposure

Poor cybersecurity, high risk of significant breaches or system failures

E5: Resource Use & Circular Economy

TEC.F3. Technology Market Evolution & Obsolescence: How could rapid technology change affect the relevance and competitiveness of your products?

Technology leadership, innovation capability provides sustained advantage

Good technology position, able to evolve with market changes

Standard technology capabilities, need to monitor market evolution

Some technology obsolescence risk, significant investment needed

High obsolescence risk, fundamental technology shifts threaten business

E1: Climate Change

TEC.I4. Climate Change: How significant are the energy consumption and carbon emissions of your digital infrastructure and products?

Carbon-negative digital operations, green technology innovation

Low carbon digital infrastructure, renewable energy use

Moderate energy consumption with efficiency measures

High energy consumption, limited efficiency measures

Very high energy consumption, significant carbon footprint

S1: Own Workforce

TEC.I5. Workforce Development: How effectively do you develop technical skills and address the tech industry's diversity and inclusion challenges?

Comprehensive diversity programs, skills development leader, inclusive culture

Good diversity initiatives, strong technical development programs

Some diversity efforts, standard technical training

Limited diversity programs, basic skills development

No diversity strategy, poor skills development, exclusionary culture

Gravity Form Auto-Filler

ESG Materiality Assessment

Executive Summary

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Materiality Matrix

Compliance Priority Matrix

VSME-Specific Benchmarks - Industry and Capability

Material Topics & Key Actions

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Topic-Specific Compliance Priorities

Compliance analysis will appear here

Action Framework & Implementation Roadmap

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