The decisions an organization makes affect a broad network of stakeholders, from employees to suppliers and from customers to the wider community. In turn, the expectations of these stakeholders shape the organization's strategy and priorities. Stakeholder analysis is the systematic mapping of this two-way interaction and its integration into decision-making processes. With CSRD and ESRS, stakeholder engagement is no longer merely good practice; it has become a legal requirement and a fundamental input in selecting the material topics to be reported.
Stakeholder Mapping Methodology
The first step is to list and prioritize all stakeholder groups that interact with the organization directly or indirectly. The most common approach to stakeholder mapping positions each group along two axes: its "influence on the organization" and the "degree to which it is affected by the organization".
| Influence / Affected | Highly Affected | Slightly Affected |
|---|---|---|
| High Influence | Strategic partner (close collaboration) | To be monitored (regular communication) |
| Low Influence | Information priority (reports + announcements) | Passive monitoring (general communication is sufficient) |
Building this matrix provides a concrete basis for deciding where to invest in stakeholder engagement.
Materiality Analysis: Double Materiality
The double materiality approach, made mandatory by CSRD, evaluates whether a topic should be included in reporting from two perspectives:
- Impact materiality: The significant impacts of the organization's activities on people and the environment. Informed by stakeholder surveys and expert opinions.
- Financial materiality: The effects of sustainability topics on the organization's cash flow, development and financial position. Assessed through interviews with the CFO, risk manager and investors.
Phases of the Engagement
- Building the stakeholder list: Comprehensive identification of internal and external stakeholders and their breakdown into sub-segments.
- Prioritization matrix: Determining engagement investment priorities through influence / affected analysis.
- Designing engagement methods: Survey, in-depth interview, focus group and panel formats are selected according to each stakeholder.
- Fieldwork: Data is collected using the chosen methods and response rates are monitored.
- Identifying material topics: The data is analyzed and material topics are listed from a double materiality perspective.
- Presentation to the board: Material topics and stakeholder feedback are integrated into strategic decisions by senior management.
Social Impact Measurement
A natural extension of stakeholder analysis is social impact measurement. This measurement involves the quantitative and qualitative assessment of the contributions the organization makes to the community, its employees and its value chain. Common methodologies include SROI (Social Return on Investment), the B Lab Impact Assessment and IRIS+ metrics.
The value of stakeholder analysis comes not from listing who is who, but from being able to ask the right question to the right stakeholder at the right time.
Frequently Asked Questions
- How often should stakeholder analysis be carried out?
A full-scope stakeholder analysis is repeated every 2-3 years. However, within the annual reporting cycle, the materiality map is checked to confirm it remains up to date. The analysis is renewed in the event of significant operational changes (new facility, M&A, new market).
- How many stakeholder surveys are sufficient for a double materiality analysis?
To reflect sectoral and geographic diversity, 80-150 participants are typically targeted. The data is further enriched with 8-12 in-depth interviews and 2-3 focus groups.
- How are employee views addressed in stakeholder analysis?
Employees are the most critical internal stakeholder group. Data is collected through anonymous employee surveys and interviews with union representatives. The results feed directly into human resources strategy, diversity policy and training programs.
- Is additional software required for social impact measurement?
Structured Excel templates are sufficient for small-scale organizations. For large, multi-location organizations, specialized platforms such as B Lab, Sopact or UpMetrics can be used.