ANNOUNCEMENTS
The increasing urgency of climate risks, regulatory tightening under the EU Corporate Sustainability Reporting Directive (CSRD), and evolving stakeholder expectations have made Environmental, Social, and Governance (ESG) integration a strategic imperative for manufacturing firms worldwide. This study presents a pioneering application of the Double Materiality Assessment (DMA) framework at ABC Component Ltd. (the “Company”), a representative mid-sized automotive component manufacturer in India’s Tier-2 supply chain. Using a mixed-methods approach, the research integrates stakeholder engagement, peer benchmarking, and financial materiality evaluation to identify and prioritize ESG topics aligned with the CSRD under ESRS standards.
In a novel addition to existing materiality studies, the research validates physical risks using spatial tools such as the World Resources Institute’s (WRI) Aqueduct Water Risk Atlas and the World Bank Climate Knowledge Portal. These tools identify high water stress and projected heat stress at key operational sites, strengthening the empirical grounding of impact materiality assessments under ESRS E1 and E3. The findings result in a CSRD-aligned Double Materiality Matrix and a phased ESG roadmap tailored to the Company operational context.
This study contributes a replicable, evidence-based methodology for first-time ESG adoption in India’s supplier-driven manufacturing ecosystem. It addresses a critical implementation gap for unlisted firms by combining regulatory alignment with data-driven risk insights, supporting the dual objective of ESG compliance and long-term value creation.
Keywords: Double Materiality, ESG Reporting, CSRD, Automotive Manufacturing, Water Stress, Heat Stress, GRI, ESRS, Tier-2 Suppliers, India.
