Sustainability-related impacts

The effect the undertaking has or could have on the environment and people, including effects on their human rights, as a result of the undertaking's activities or business relationships. The impacts can be actual or potential, negative or positive, short-term, medium or long-term, intended or unintended, and reversible or irreversible. Impacts indicate the undertaking's contribution, negative or positive, to sustainable development.

Sustainability-related impacts encompass all actual and potential effects that companies exert on the environment and society through their actions. These effects can impact various dimensions of sustainability both positively and negatively, manifesting in ecological, social, and economic areas in the short, medium, or long term. For example, companies can contribute to global warming through high CO₂ emissions (negative ecological impacts) or develop innovative, sustainable products that reduce their ecological footprint (positive ecological impacts).

In the social realm, companies can create positive social impacts through fair wages and good working conditions, while they can provoke negative effects through discrimination or violations of labor rights.The systematic analysis of these sustainability-related impacts is essential for corporate responsibility and within the framework of regulatory requirements, such as the EU taxonomy or the Corporate Sustainability Reporting Directive (CSRD). Conducting a double materiality analysis allows companies to better understand their influences on the environment and society, as well as the potential risks associated with sustainability issues. This comprehensive consideration of impacts is crucial for developing credible sustainability strategies and complying with current ESG standards.