This master thesis investigates the integration of stakeholder analysis into the Double Materiality Assessment (DMA) for green industries, with a particular focus on its relevance within the framework of the Corporate Sustainability Reporting Directive (CSRD). With a deadline for compliance by large companies operating in the European Union by 2025, urgency surrounds the need to comprehensively understand the Impacts, Risks and Opportunities (IROs). The study centers on H2 Green Steel (H2GS), a pioneering green industry in Sweden, to examine two of its key stakeholders, the society and the planet. As a silent stakeholder, the planet requires a unique approach within the DMA process. By utilizing action research methodology, stakeholders representing society and the planet are studied, offering insights that can be applied as a model for other companies undertaking similar assessments. Through a combination of data collection methods including mapping H2GS’s value chain, conducting semi-structured interviews, and utilising stakeholder analysis tools, such a power-interest grid, the study identifies key stakeholders and assesses their relationships with the company. Additionally, the study evaluates IROs related to the planet through a comparative analysis of methods outlined by the DMA guideline, ensuring comprehensivecoverage of the silent stakeholder’s perspective. The findings underscore the critical role ofcivil society stakeholders, particularly in the context of large industries within small communities. Continuous dialogue is essential for integrating societal perspectives into corporate strategies. Moreover, for planetary stakeholders, a multifaceted approach combining global research, local assessments, engagement with proxy organizations, and validation by expert groups is recommended to ensure a comprehensive understanding of related IROs. Engagement with indigenous communities, such as the Sámi in Sweden, is emphasized to address social implications effectively. In conclusion, this study underscores the importance of stakeholder engagement in the DMA process, offering insights and methodologies that can aidcompanies in assessing their impacts comprehensively, thereby contributing to corporatesustainability and regulatory compliance. / Denna masteruppsats undersöker integrationen av intressentanalys i Double Materiality Assessment (DMA) för gröna industrier, med särskilt fokus på dess relevans inom ramen för Corporate Sustainability Reporting Directive (CSRD). Med en deadline för efterlevnad av stora företag som är verksamma i Europeiska unionen senast 2025, är det ett brådskande behov av att på ett heltäckande sätt förstå Impacts, Risks and Opportunities (IROs). Studien fokuserar på H2 Green Steel (H2GS), en banbrytande grön industri i Sverige, för att undersöka två av dess viktigaste intressenter, samhälle och planet. Som en tyst intressent kräver planeten ett unikt tillvägagångssätt inom DMA-processen. Genom att använda aktionsforskningsmetodik studeras intressenter som representerar samhället och planeten, vilket ger insikter som kan användas som modell för andra företag som gör liknande bedömningar. Genom en kombination av datainsamlingsmetoder inklusive kartläggning av H2GS värdekedja, genomförande av semistrukturerade intervjuer och utnyttjande av analysverktyg för intressenter, såsom ett kraftnät, identifierar studien nyckelintressenter och bedömer deras relationer med företaget. Dessutom utvärderar studien IROs relaterade till planeten genom en jämförande analys av metoder som beskrivs i DMA-riktlinjen, vilket säkerställer en omfattande täckning av den tysta intressentens perspektiv. Resultaten understryker den avgörande roll som det civila samhällets intressenter spelar, särskilt i samband med stora industrier inom små samhällen. En kontinuerlig dialog är väsentlig för att integrera samhällsperspektiv i företagsstrategier. Dessutom, för planetära intressenter, rekommenderas ett mångfacetterat tillvägagångssätt som kombinerar global forskning, lokala bedömningar, engagemang med proxyorganisationer och validering av expertgrupper för att säkerställa en heltäckande förståelse av relaterade IROs. Engagemang med ursprungsbefolkningar, såsom samerna i Sverige, betonas för att effektivt kunna hantera sociala konsekvenser. Sammanfattningsvis understryker denna studie vikten av intressenternas engagemang i DMA-processen, och erbjuder insikter och metoder som kan hjälpa företag att bedöma deras effekter på ett heltäckande sätt, och därmed bidra till företagens hållbarhet och regelefterlevnad.

The evolution of sustainability reporting demands increased transparency and scope. A pivotal aspect of this process is the determination of materiality for disclosure. The European Union, through its latest enactment, the European Sustainability Reporting Standards (ESRS), has refined the interpretation of materiality criteria. This regulatory development motivates this study, which aims to explore the implications of the double materiality assessment (DMA). Specifically, investigating how the DMA is strategically utilized and if the generated output could lead to change in companies’ governance, operations, and practices.  To investigate this, the study examines eight Swedish companies across various industries, among the early adopters of ESRS. These companies serve as the focal point of the case study, utilizing a qualitative research approach where insights are derived from semi-structured interviews with key representatives of these firms. A conceptual framework, drawing from dynamic capabilities and institutional theory, help identifying patterns and themes related to dynamic skills and isomorphic tendencies.  The study reveals how the DMA shapes companies’ sustainability focus and operations. It enhances internal and external discussions, promotes sustainability awareness among colleagues, and facilitates knowledge sharing. The DMA emphasizes supplier transparency, fosters stakeholder engagement, and influences sustainability strategies, leading to organizational restructuring. Additionally, the study highlights the reliance on external consultants for DMA execution, reflecting resource constraints or regulatory complexity. Professional audits expedite compliance efforts but raise concerns about internal resource adequacy for sustainability reporting practices amidst new disclosure mandates.

This research investigates the challenges Scandinavian organizations face in adapting their ESG reporting practices to comply with the Corporate Sustainability Reporting Directive (CSRD), introduced in January 2024. The CSRD aims to enhance Environmental, Social and Governance (ESG) reporting by implementing double materiality assessment (DMA) and expanding the scope of value chain reporting. Given its novelty and the limited academic literature on this topic, this research provides critical insights into these transformations.  Three research questions guide this study: (1) How do Scandinavian organizations conduct the DMA of their ESG reporting under the CSRD? (2) How do Scandinavian organizations address challenges in ESG reporting along the entire value chain after adopting the CSRD? (3) How is the CSRD reshaping the ESG reporting challenges faced by Scandinavian organizations? The research employs a qualitative, exploratory approach, including expert interviews and textual analysis. Grounded in Stakeholder Theory and Value Chain Theory, the study provides perspectives for understanding stakeholder engagement and value chain dynamics in ESG reporting. The findings reveal that organizations exhibit varying approaches to DMA, influenced by conflicting definitions of materiality, differing stakeholder engagement practices and subjectivity. Despite ESRS guidance, this creates challenges in comparability and implementation. In terms of value chain reporting, organizations face significant challenges in data gathering and transparency. The CSRD reshapes ESG reporting by standardizing requirements and addressing previous inconsistencies of its predecessor, the Non-Financial Reporting Directive (NFRD). However, the CSRD introduces both opportunities and challenges for Scandinavian organizations.  By integrating Stakeholder and Value Chain Theory, this study highlights the importance of comprehensive stakeholder engagement and robust data systems. The findings underscore the need for ongoing adjustments and improvements of the reporting standards as organizations navigate the evolving ESG landscape under the CSRD. Ultimately, the CSRD is contributing to more sustainable and transparent business practices.