Material opportunities

Sustainability related opportunities with positive financial effects that materially affect, (or could reasonably be expected to affect) the undertaking’s cash flows, access to finance, or cost of capital over the short, medium or long term.

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Significant opportunities are substantial, potentially positive developments or events that can have a considerable impact on a company's financial success. Their identification and utilization are crucial for strategic decision-making processes, as they can support forecasting and goal achievement and create competitive advantages. Under the German accounting standard DRS 20, they are described as possible future events that can lead to favorable deviations.

The management of significant opportunities encompasses several steps: First, an opportunity strategy is formulated, followed by the identification of potential opportunities, such as the introduction of innovative technologies or the exploration of new markets. Subsequently, an analysis of the identified opportunities is conducted regarding their probability of occurrence and potential benefits. The results are implemented into actions and regularly evaluated to ensure that the opportunities are utilized in alignment with the overarching corporate strategy.

The concept of double materiality in sustainability management is particularly relevant, as it considers both risks and opportunities that have significant impacts on the company as well as on the environment and society. Such structured approaches enable companies to unlock value creation potentials while also fulfilling societal responsibilities.

In summary, significant opportunities are not just a theoretical construct, but integral components for sustainable corporate growth and long-term competitiveness.