avk-esg-2024-25 - Flipbook - Page 16
INTRODUCTION TO AVK’S
SUSTAINABILITY & ESG
ORGANISATION
We see sustainability as an integrated part of our business,
and it is one of the global focus areas for the Group
supported by AVK Holding. Activities and requirements are
coordinated across all the companies of the Group.
Establishment of Sustainability & ESG
function
On February 1, 2024, a dedicated central Group
Sustainability & ESG function was established
with reference to AVK Group top management.
The function, which is responsible for anchoring
sustainability across the organisation, draws
on key specialist resources from other AVK
Group functions: Group Finance, Legal,
Communication, Supply Chain, and IT as well as
key staff from our global companies.
In addition, the individual companies within
the AVK Group are increasingly involved in the
sustainability and ESG work. This includes
continuous collaboration and dialogue with the
companies regarding best practice, knowledge
sharing, and the handling of specific tasks.
This ongoing interaction ensures alignment
across the organisation and strengthens the
implementation of sustainability initiatives at
both group and local levels.
Sustainability & ESG management
structure at AVK
Sustainability and ESG is a focus area for
the Group, as we, as a global organisation,
continue to face increasing demands related
to sustainability and ESG responsibilities,
requiring strong processes for data collection,
documentation, and governance. We maintain
a focus on current and emerging customer
requirements, which continue to shape our
sustainability direction. During 2023/24, AVK
began the strategic implementation of the
CSRD, with a key focus on carrying out a
Double Materiality Assessment (DMA).
Due to the EU “Omnibus” proposal to postpone
16 | AVK Group Sustainability report 2024/2025
parts of the Corporate Sustainability Reporting
Directive (CSRD) and the Environmental, Social,
and Governance Reporting Standards (ESRS)
requirements, some legislative details are still
pending. Nevertheless, AVK has maintained its
structured approach to sustainability and how
sustainability and ESG activities are organised
across the Group.
To strengthen our readiness, we have continued
to develop a Group-wide risk assessment in
alignment with the initial requirements of the EU
CSRD and the ESRS.
Double Materiality Assessment
A central element of the European sustainability
reporting framework, ESRS, is the concept
of double materiality. The DMA sets the
framework of reporting by addressing
materiality from both an impact and a financial
perspective.
Impact materiality refers to how a company
can affect people, society, or the environment
in a positive or negative way – also referred to
as the company's inside-out perspective on its
surroundings.
Financial materiality refers to how the external
environment or society can or will affect a
company’s ability to conduct business now
and in the future through financial risks and
opportunities.
This assessment identifies and prioritises the
AVK Group’s most significant impacts, risks,
and opportunities and forms the framework for
our sustainability strategy.
Double materiality process
The DMA was finalised in March 2025, using
a top-down approach from the AVK Group to
our operating companies and their value chains,
including global suppliers. Following this, we
initiated a gap assessment to evaluate the
Group’s current readiness in relation to ESRS
disclosure requirements. Completion of this
assessment is currently on hold, pending the
final legislative outcomes of the “Stop-theClock” directive.
Based on the results of our DMA, we continue
to identify the AVK Group’s key risks and
opportunities related to sustainability across
environmental, social, and governance areas.
These are being integrated into relevant
internal controls, management processes, and
policies to ensure a coherent and future-proof
governance framework.
We continue to work towards ensuring that,
where possible, our overall sustainability
agenda and related requirements are managed
and supported through our global ISO-based
management systems.
