Browsing by Author "Hyytinen, Sanni"

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Corporate Sustainability Reporting Directive and double materiality: Investors’ perspectives on impact-driven financial risks and opportunities
(2024-12-29) Hyytinen, Sanni
School of Science | Master's thesis
The EU’s Corporate Sustainability Reporting Directive (CSRD) bridges the gap between financial and sustainability reporting through double materiality. It requires companies to assess environmental, social, and governmental impacts on the world (impact materiality), and financial risks and opportunities resulting from these impacts (financial materiality). This thesis seeks to clarify how impact-driven financial materiality should be assessed under the CSRD, based on learnings from current financial risk and opportunity assessment practices of investors. This thesis adopts a qualitative research design, combining a literature review with primary data from 23 semi-structured interviews with investors across 10 European countries. The data is analysed using the Gioia methodology, leading to four aggregate dimensions and a framework for assessing impact-driven financial materiality. Main findings include the identification of patterns for risk and opportunity materialisation, aided by existing environmental frameworks, with analogous structures proposed for social and governance matters. A top-down approach is suggested to determine the materiality of the recognised risks, considering factors such as industry, geolocation, past controversies, and basic policies to assess magnitude and probability. A bottom-up approach for fine-tuning and the integration of opportunities follows, considering business models, product and service impacts, and the ability to mitigate risks or capture opportunities. Third-party data and governance play an important role in evaluating materiality, with governance functioning both as a controlling mechanism and a source of materiality. Financial effects can be quantified using both quantitative and qualitative approaches, while time horizon decisions are guided by strategic and pragmatic perspectives. Practical implications of the thesis include providing methods and tools for different stakeholders to operationalise the requirements of the CSRD. It also contributes to the theoretical discourse by offering a unified perspective on how impacts translate into financial terms, and providing clarity on key concepts and terms related to the CSRD.
Integroitujen hoitosuunnitelmien laatimista tukevat tekniset ratkaisut
(2022-04-13) Hyytinen, Sanni
Perustieteiden korkeakoulu | Bachelor's thesis