IRO-1 – Description of the processes to identify and assess material impacts, risks and opportunities
Rentenbank identifies and assesses material sustainability-related impacts, risks and opportunities through a structured double materiality assessment process. This process takes into account both impact materiality (impacts on the environment and society) and financial materiality (financial risks and opportunities for Rentenbank).
Overview of the process
The process for determining and assessing materiality is divided into several consecutive steps.
The starting point is a broad identification of potentially relevant sustainability matters along Rentenbank’s business model. This takes into account internal analyses, the results of the previous materiality assessment, the content of earlier publications, regulatory requirements, and industry and sector analyses. The matters identified are then grouped into thematic clusters.
Impacts on the environment and society are assessed in accordance with the criteria specified in the ESRS. These include the scale of the impact, the scope of the impact, the irremediable character of adverse impacts, and the likelihood of impacts that have not yet occurred. In expert interviews, respondents assessed these factors on a scale of 1 to 4.
The assessment of financial risks and opportunities is based on Rentenbank’s existing risk management system. It takes into account the potential financial severity and the probability of occurrence within a defined observation period.
The individual assessments of impact and financial materiality are aggregated. Threshold values were defined for both dimensions, above which a matter is considered material. These threshold values are applied and documented consistently to ensure that materiality decisions are transparent and reproducible.
The final materiality matrix is prepared on the basis of the aggregated assessments and the defined threshold values. A sustainability topic is defined as material as soon as it exceeds the previously defined threshold value in one of the two dimensions, namely impact materiality or financial materiality.
A large number of internal organisational units are involved in the materiality assessment process, including operational departments, risk management, sustainability management and other central functions, such as the Data Protection Officer. Each department is presented with the matters to be assessed that fall within its area of responsibility and for which it is able to understand the assessments of key stakeholders. The Management Board is informed about the methodology, results and material changes to the materiality assessment.
Perspectives from stakeholders, which are obtained via various formats during ongoing business, are used in particular to identify relevant matters and to check the plausibility of assessments. An isolated solicitation and quantitative weighting of individual points of view from stakeholders was not carried out as part of the double materiality assessment in the reporting year.
Results and implications for reporting
Based on the process described above, the matters of climate change (E1), own workforce (S1) and business conduct (G1) were identified as material. Rentenbank therefore reports on the relevant topical ESRS disclosures.
In the absence of sector-specific standards, not all material matters could be allocated to a topical standard. This applies in particular to matters affecting the sectors we support. Owing to the broad economic impact of our support for conventional and organic farming and for rural areas, we report on these matters as entity-specific disclosures as part of our social reporting. Because of its relevance to good corporate governance, data protection and information security are also presented as an entity-specific disclosure in the relevant section of the Sustainability Statement.
Matters that fell below the defined thresholds in the course of the assessment are not reported on in detail. The decision on materiality is reviewed regularly and updated if necessary. A review of the results is to take place in 2026.
