Double Materiality
The Next Frontier in ESG
Guidance
What is a Double Materiality Assessment?
The term “double materiality” refers to how social and environmental information disclosed by a company can be material both in terms of its implications for the organisation’s financial value, as well as their external impact on society and the environment.
‘Materiality’, in this sense, is referring to the issues, both financial and sustainability-related, that are most important for an organisation to address. In other words, companies should not only consider how their decisions will affect their bottom line, but also how they will affect society and the environment.
Double materiality assessments has gained increasing attention in recent years as organisations’ impacts on the world around them are subject to new levels of consumer and regulatory scrutiny.
There are a number of reasons why double materiality is important:
First, it can help companies to identify and manage risks. For example, a company that is not taking into account the potential impact of climate change on its business is at risk of losing out to competitors that are.
Second, double materiality can help companies to identify and seize opportunities. For example, a company that is investing in sustainability initiatives may be able to attract new customers and partners, or reduce its costs.
Third, double materiality can help companies to build trust with stakeholders. Investors, customers, employees, and the public are increasingly demanding that companies be transparent about their sustainability performance. By embracing double materiality, companies can demonstrate their commitment to sustainability and build trust with these key stakeholders.
Discover how we can support businesses to understand materiality through an impact, financial and double materiality lens, with a focus on building capacity in the organisation to support integrated sustainability management.
Double Materiality and CSRD
Organisations will be required to follow a double materiality process as part of the EU Corporate Sustainability Reporting Directive (CSRD). The CSRD double materiality guidelines were developed by the European Financial Reporting Advisory Group (EFRAG) as the technical advisor to the European Commission developing draft EU Sustainability Reporting Standards (ESRS).
Watch our webinar with Gemma Sánchez Danés from the EFRAG leadership team to learn more about the EFRAG double materiality guidelines, how to effectively tackle the challenges and seize the opportunities presented by double materiality.
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Double Materiality Guidance
Double Materiality Guide
Regulation around sustainability reporting is getting tighter. How can you meet the emerging regulatory requirements on double materiality, but also make sure you use the process to make your organisation more sustainable?
Webinar: Getting Started with Double Materiality
Join the Anthesis team as they examine the significant elements of materiality, including the double-materiality perspective, risks and opportunities.
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