Double Materiality Analysis for IAG

Customer

International Airlines Group (IAG)

Context

International Airlines Group (IAG), one of the largest airline groups in the world, asked us to conduct a double materiality analysis as part of the regulatory requirements of the CSRD (Corporate Sustainability Reporting Directive).

This project needed to incorporate impacts, risks, and opportunities from all its operating companies, including major European airlines British Airways, Iberia, Aer Lingus, Vueling and Level, as well as IAG Loyalty, IAG Cargo, and IAG Global Business Services (IAG GBS).

The challenge

The challenge was to integrate the diverse perspectives of internal and external stakeholders across the organisation.

The exercise needed to not only ensure compliance with CSRD and ESRS standards but also capture the unique characteristics of each company, thereby providing an analysis that would enrich strategic decision-making.

Project Objectives:

Ensure compliance with CSRD and ESRS.
Incorporate the perspectives of all the holding's operating companies, considering their unique characteristics while maintaining IAG's overall perspective.
Identify and assess the impacts that the operating companies have on their stakeholders, as well as the risks and opportunities that could affect IAG's business profitability.
Engage and train members of the organization so they can self-manage future updates of the provided double materiality analysis tool.

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Plan of action

We followed the following methodology:

Understanding the Context and Identifying Topics: We analyzed IAG's business model and its operating companies, gaining an understanding of their activities, business relationships, and contextual factors. We achieved a deep understanding of the main stakeholders involved in the operations. We reviewed the material topics from previous studies by IAG, as well as those of its competitors and relevant topics mentioned in ESG ratings and standards.

Identification of Impacts, Risks, and Opportunities: We considered various sources of information from IAG and its operating companies to identify impacts, risks, and opportunities.

Evaluation of Impacts, Risks, and Opportunities: We coordinated an assessment of the impacts, risks, and opportunities based on CSRD criteria. More than 70 participants across the organisation participated in the exercise.

Consolidation and Construction of the Double Materiality Table: We constructed a double materiality table that integrated the results of impact and financial materiality for IAG and its airlines.

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Outturn

Double materiality table for IAG and each of its subsidiaries

Sustainability topics identified and aligned with the ESRS

Over 70 experts involved in the impact assessment

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