A double materiality assessment is the process of determining which sustainability topics must be included in reports. Topics can be material based on how they affect your business's financial performance (financial materiality), how they impact society and the environment (impact materiality), or both.
Under the CSRD, conducting a double materiality assessment is mandatory and serves as the foundation of the entire reporting process. It determines which of the topical ESRS standards (E1–E5, S1–S4, G1) a company must report on. The assessment involves stakeholder engagement, an IRO (Impacts, Risks, and Opportunities) analysis, and threshold-setting to distinguish material from non-material topics. Companies must document and disclose their assessment methodology.
Learn more about CSRD double materiality requirements and explore our guide on the European Sustainability Reporting Standards to understand how the assessment drives your reporting scope. Compare top CSRD software tools for automated materiality assessments.
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