1. Preparation and scoping
As a common point of reference for the assessment it started with mapping of Icelandair’s business model and value chain. The mapping also served to determine the assessment boundaries, i.e. what is captured in the assessment and thresholds, followed by mapping affected stakeholders and determining their involvement.
2. Mapping impacts, risks, and opportunities
As a second step, comprehensive workshops were held to validate previously identified impacts, risks, and opportunities (IRO’s) and to identify additional or new IRO’s that could potentially be material for Icelandair. The process covered all topics, sub-topics and sub-sub-topics included in the overview in ESRS 1. Based on the results from these workshops, and to get further information and understanding, consultation with stakeholders and experts was conducted.
3. Assessing materiality
The third step was firstly to assess materiality of impacts by evaluating severity and likelihood and secondly assess materiality of risks and opportunities by evaluating potential size and likelihood. The outcome was aligned with the materiality thresholds resulting in an impact, risk or opportunity that is material for Icelandair.
4. Validation and reporting
Validation of the assessment was the final step and the output presented in a DMA results report, including a materiality matrix showing the consolidated results of which sustainability topics were assessed as material. As a part of the preparation phase for future CSRD reporting this will be a continuous process and if needed an update of the assessment will be done. To facilitate the assurance process by a third-party, a documentation of the methodology and results are in place.