Double Materiality Assessment according to CSRD: Step-by-Step Guide
Tobias Martetschlaeger
9Min. reading time
Laws and regulations
The double materiality assessment (DWA) is a central element of the Corporate Sustainability Reporting Directive (CSRD). It requires companies to consider both the impacts of their business activities on the environment and society, as well as the influences of sustainability aspects on their financial situation. This approach enables a comprehensive assessment of sustainability and provides the basis for future-oriented corporate governance.
The implementation of the double materiality assessment follows a structured process. Companies first identify relevant topics, assess their significance from various perspectives, and prioritize them accordingly. The results feed into the sustainability reporting and serve as the basis for strategic decisions.
Although the double materiality assessment poses a challenge, it offers companies the opportunity to comprehensively capture and improve their sustainability performance. It promotes understanding of complex interrelations and supports the integration of sustainability aspects into business processes.
Double Materiality Assessment: Key Insights in Brief
The double materiality assessment considers the impacts of the company on the environment and society as well as the influences of sustainability aspects on the financial situation.
The structured process includes the identification, assessment, and prioritization of relevant sustainability topics.
The assessment forms the basis for CSRD-compliant reporting and strategic decisions within the company.
Definitions and Fundamentals
The CSRD and the concept of double materiality are central elements of modern sustainability reporting. They provide the framework for a comprehensive and transparent representation of corporate activities in sustainability.
The CSRD at a Glance
The Corporate Sustainability Reporting Directive (CSRD) is an EU directive on sustainability reporting. It obliges companies to disclose detailed information on environmental, social, and governance aspects.
The CSRD significantly expands the circle of companies required to report. It introduces uniform reporting standards and requires external auditing of reports.
The aim of the CSRD is to improve the transparency and comparability of sustainability information. This is intended to enable investors and other stakeholders to make informed decisions.
Materiality in the Context of Sustainability Reporting
Materiality determines which topics are mandatory for a company to report. In the context of sustainability, it is about identifying relevant impacts and risks.
A topic is considered material if it:
significantly influences the company's business activities
is important for stakeholders
has ecological or social impacts
The materiality analysis helps companies focus on the most important sustainability aspects. It is a key element for effective and targeted reporting.
Double Materiality – A Core Concept of the CSRD
Double materiality expands the traditional concept of materiality. It considers two perspectives:
Inside-out: How does the company impact the environment and society?
Outside-in: How do sustainability topics affect business success?
This approach requires a holistic view. Companies must analyze both their impacts and the factors affecting them.
Double materiality fosters a deeper understanding of sustainability risks and opportunities. It helps companies develop sustainable strategies in the long term.
Framework Conditions and Relevance
The double materiality analysis is a central element of CSRD reporting. It considers both the impacts of the company on the environment and society, as well as the influences of sustainability aspects on business success.
EU Legal Framework and the Push for Sustainability Reporting
The Corporate Sustainability Reporting Directive (CSRD) is an important step by the EU to promote sustainable corporate governance. It significantly expands the reporting obligations for companies.
The CSRD aims to improve the transparency and comparability of sustainability information. In the future, companies must report in detail on their impacts on the environment, social issues, and corporate governance.
This new directive affects a large number of companies in the EU. It sets clear standards for reporting and thus promotes a more sustainable economy.
The European Sustainability Reporting Standards (ESRS)
The ESRS form the foundation for the implementation of the CSRD. They define specific requirements for the sustainability reporting of companies.
The standards cover various areas such as environment, social issues, and governance. They provide detailed guidelines for the collection and presentation of sustainability information.
Companies must consider these standards when drafting their reports. The ESRS promotes uniform and comparable reporting in the EU.
Stakeholder Orientation and Sustainability in the Corporate Context
The double materiality assessment takes into account the interests of various stakeholders. Companies must assess the impacts of their activities on different stakeholder groups.
At the same time, they analyze how sustainability aspects influence business success. This holistic view promotes sustainable corporate governance.
Involving stakeholders in the analysis process is crucial. It helps companies identify relevant sustainability topics and adjust their strategy accordingly.
Conducting the Materiality Assessment
The materiality assessment is a central component of CSRD reporting. It requires careful planning, consideration of various perspectives, and effective data management.
Preparation and Planning of the Materiality Assessment
Preparation begins with setting clear goals and responsibilities. An interdisciplinary team should be formed, representing various areas of the company.
Identifying relevant stakeholders and sustainability topics is crucial. Industry standards, competitive analyses, and internal expert discussions can be helpful in this regard.
A detailed timeline and resource planning are essential. The analysis should be conducted and updated regularly to account for changes in the business environment.
Inside-Out vs. Outside-In Perspective
Double materiality requires two different viewpoints:
Focus on the impacts of the company on the environment and society
Analysis of processes, products, and services
Evaluation of positive and negative influences
Outside-In Perspective:
Consideration of external factors and their influence on the company
Inclusion of stakeholder expectations and market trends
Assessment of risks and opportunities for the business model
The combination of both perspectives allows for a comprehensive consideration of sustainability topics.
Data and Information Management
A structured data management system is crucial for a well-founded materiality analysis. Companies should:
Identify relevant data sources (internal reports, stakeholder feedback, external studies)
Establish clear processes for data collection and validation
Observe data protection guidelines and safeguard sensitive information
The use of specialized software can facilitate data collection and analysis. Transparent documentation of methodology and results is essential for sustainability reporting.
Regular reviews and updates of the data foundation ensure that the materiality analysis remains current and meaningful.
Identifying and Assessing Material Issues
The double materiality analysis forms the foundation for effective CSRD reporting. It enables companies to recognize and prioritize relevant sustainability topics.
Understanding Impact Materiality and Financial Materiality
Impact materiality refers to the effects of a company on the environment and society. This includes topics like CO2 emissions, working conditions, and resource consumption.
Financial materiality, on the other hand, focuses on sustainability aspects that affect the company's financial situation. This includes risks and opportunities arising from climate change, regulatory changes, or reputational damage.
The combination of both perspectives allows for a comprehensive examination of materiality. Companies must carefully analyze both aspects to report in compliance with the CSRD.
The Role of EFRAG in Defining Materiality Criteria
The European Financial Reporting Advisory Group (EFRAG) plays a central role in the development of the European Sustainability Reporting Standards (ESRS). It defines the criteria for the materiality analysis.
EFRAG has developed detailed guidelines for conducting the double materiality analysis. These include thresholds and evaluation methods for impact and financial materiality.
Companies must consider these guidelines in their analysis to report in compliance with the CSRD. The EFRAG criteria provide a structured framework for identifying and assessing material topics.
Analysis and Interaction with Stakeholders
Including stakeholders is an essential component of the materiality analysis. Companies must identify relevant stakeholder groups and involve them in the process.
Important stakeholders include:
Employees
Customers
Suppliers
Investors
Authorities
NGOs
Methods for stakeholder engagement include:
Surveys
Interviews
Workshops
Focus groups
The insights gained feed into the materiality assessment. They help to validate internal evaluations and uncover blind spots.
A thorough stakeholder analysis ensures that all relevant perspectives are considered. This increases the quality and credibility of the materiality analysis.
Interpreting and Applying Results
The interpretation and application of the results of the double materiality analysis are crucial for developing an effective sustainability strategy. This process includes creating a materiality matrix and deriving concrete actions.
Creating the Materiality Matrix
The materiality matrix visualizes the results of the analysis and helps prioritize ESG issues. The x-axis represents the company's impact on the environment and society, while the y-axis shows the impact of sustainability aspects on the company.
Topics in the upper right quadrant have the highest priority and require special attention. These may include climate change, resource efficiency, or working conditions in the supply chain.
The matrix also considers sector-specific aspects and regulatory requirements. It serves as a basis for discussions with stakeholders and helps identify risks and opportunities.
Developing a Sustainability Strategy
Based on the materiality matrix, a sustainability strategy is developed. This includes concrete goals, measures, and KPIs for prioritized topics.
The strategy should be integrated into the overall corporate strategy and consider all relevant areas of the value chain. Governance structures must be adapted to ensure implementation.
It is important to regularly review the strategy and adjust it to changing conditions. CSRD-standard reporting should transparently present progress.
Reporting and Communication
The double materiality analysis forms the basis for comprehensive and transparent sustainability reporting. Companies must systematically prepare and effectively communicate their results.
Designing the Sustainability Report under ESRS
The sustainability report under ESRS requires a clear structure and meaningful content. Companies should systematically present the identified material topics and substantiate them with concrete metrics.
A tabular overview of the materiality matrix can visualize the results. It is important to integrate sustainability information into the management report, as required by the CSRD.
The reporting requirements include detailed information on environmental, social, and governance aspects. Companies must articulate their strategies, goals, and progress in these areas.
Communication Strategies for Sustainability Performance
Effective communication of sustainability performance goes beyond the report. Companies should use various channels to reach their stakeholders:
Website: Dedicated sustainability section with interactive elements
Social Media: Regular updates on sustainability initiatives
Press releases: Communicating important milestones and successes
Messages should be clear, consistent, and fact-based. Linking them to corporate goals and values strengthens credibility.
Transparency is crucial: challenges and improvement potentials should also be openly communicated. This fosters trust among stakeholders and demonstrates the seriousness of the sustainability commitment.
Challenges and Best Practices
The double materiality analysis presents companies with complex tasks. Effective strategies for addressing these challenges are critical for the successful implementation of the CSRD requirements.
Addressing the Challenges of Small and Medium-sized Enterprises (SMEs)
SMEs often face unique hurdles in the double materiality analysis. Limited resources and a lack of expertise make implementation challenging.
An effective solution is to utilize standardized industry guidelines. These provide SMEs with a structured approach and save time in identifying relevant topics.
External consultants can support SMEs in the analysis. They bring expertise and help make the process efficient.
Training for employees is also important. It enables SMEs to build internal competencies and conduct the analysis independently in the long term.
Integration into Risk Management and Strategic Decision-Making Processes
Integrating the double materiality analysis into existing corporate processes is crucial for its success. It should not be treated as an isolated task.
A close alignment with risk management is advisable. This way, sustainability risks and opportunities can be systematically identified and assessed.
Incorporating insights from the analysis into strategic decision-making processes is also important. The results should influence business planning.
Regular reviews and adjustments of the analysis are necessary. They ensure that identified topics remain current and relevant.
Outlook and Future Developments
The double materiality analysis will fundamentally change the sustainability reporting of companies. New requirements and expert roles are emerging.
Upcoming Changes from the CSRD and ESRS
The Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) bring far-reaching innovations. In the future, companies must consider both impacts on sustainability and financial risks from sustainability aspects.
The reporting obligation will be gradually expanded. From 2024, initially large publicly traded companies will be affected. In subsequent years, more companies will follow.
One focus will be on the supply chain and social aspects. Companies must identify and manage risks in these areas.
The European Union aims for standardization of reporting. This is intended to improve the comparability of sustainability information.
The Role of Experts and Consulting Firms
Due to the complex new requirements, experts are gaining significance. Their task is to support companies in implementing the double materiality analysis.
Consulting firms develop specialized services and tools. These assist in identifying and assessing sustainability topics.
Experts train executives and employees. They provide the necessary knowledge for conducting the analysis and integrating it into corporate governance.
Collaboration between companies and external specialists will become more intense. Together, they will develop tailored solutions for the specific challenges of each company.
Frequently Asked Questions about Double Materiality Assessment (DWA)
The double materiality assessment is a central element of CSRD reporting. It requires careful execution and consideration of various criteria.
How is a double materiality assessment conducted in the context of the CSRD?
The implementation occurs in several steps. First, relevant sustainability topics are identified. Subsequently, these are assessed from two perspectives: the impacts of the company on the environment and society, as well as the financial impacts on the company itself. Stakeholder surveys and internal workshops are important components of the process. The results are visualized in a matrix that reflects both dimensions of materiality.
What criteria should be considered in a double materiality assessment according to the CSRD?
The CSRD values a comprehensive view. Ecological, social, and governance-related aspects must be included. The analysis should consider both short- and long-term impacts.
Industry-specific peculiarities and the entire value chain must be taken into account. Involving various internal and external stakeholder perspectives is also crucial.
What are the components of an example of double materiality assessment?
A typical example includes a list of relevant sustainability topics. These are represented in a matrix, with the axes "impacts on the environment and society" and "financial relevance for the company".
The topics are positioned in the matrix according to their significance. Additionally, explanations of the assessment methodology and the stakeholders involved can be provided.
In what form can a double materiality assessment be documented and presented?
Documentation is often in the form of a report. This contains the materiality matrix as the central visual element. Tables with the assessed topics and their classification complement the presentation. Graphics on stakeholder engagement and the analysis process are helpful. An explanation of the methodology and conclusions rounds off the presentation.
What significance does double materiality hold for ESG reporting standards?
Double materiality is a core concept of modern ESG reporting standards. It enables a holistic consideration of sustainability aspects. For the CSRD, it is mandatory and forms the basis for selecting the information to report. Other standards like GRI or SASB have integrated similar approaches. Double materiality fosters the comparability and relevance of sustainability reports.
How regularly should a materiality assessment be updated within the framework of CSRD requirements?
An annual review of the materiality assessment is recommended. This allows for current developments and changes in the business environment to be taken into account. A complete reanalysis is usually advisable every three to five years. Special events or significant changes within the company may necessitate an early update. Regular adjustments ensure the continued relevance of the reporting.
The double materiality assessment (DWA) is a central element of the Corporate Sustainability Reporting Directive (CSRD). It requires companies to consider both the impacts of their business activities on the environment and society, as well as the influences of sustainability aspects on their financial situation. This approach enables a comprehensive assessment of sustainability and provides the basis for future-oriented corporate governance.
The implementation of the double materiality assessment follows a structured process. Companies first identify relevant topics, assess their significance from various perspectives, and prioritize them accordingly. The results feed into the sustainability reporting and serve as the basis for strategic decisions.
Although the double materiality assessment poses a challenge, it offers companies the opportunity to comprehensively capture and improve their sustainability performance. It promotes understanding of complex interrelations and supports the integration of sustainability aspects into business processes.
Double Materiality Assessment: Key Insights in Brief
The double materiality assessment considers the impacts of the company on the environment and society as well as the influences of sustainability aspects on the financial situation.
The structured process includes the identification, assessment, and prioritization of relevant sustainability topics.
The assessment forms the basis for CSRD-compliant reporting and strategic decisions within the company.
Definitions and Fundamentals
The CSRD and the concept of double materiality are central elements of modern sustainability reporting. They provide the framework for a comprehensive and transparent representation of corporate activities in sustainability.
The CSRD at a Glance
The Corporate Sustainability Reporting Directive (CSRD) is an EU directive on sustainability reporting. It obliges companies to disclose detailed information on environmental, social, and governance aspects.
The CSRD significantly expands the circle of companies required to report. It introduces uniform reporting standards and requires external auditing of reports.
The aim of the CSRD is to improve the transparency and comparability of sustainability information. This is intended to enable investors and other stakeholders to make informed decisions.
Materiality in the Context of Sustainability Reporting
Materiality determines which topics are mandatory for a company to report. In the context of sustainability, it is about identifying relevant impacts and risks.
A topic is considered material if it:
significantly influences the company's business activities
is important for stakeholders
has ecological or social impacts
The materiality analysis helps companies focus on the most important sustainability aspects. It is a key element for effective and targeted reporting.
Double Materiality – A Core Concept of the CSRD
Double materiality expands the traditional concept of materiality. It considers two perspectives:
Inside-out: How does the company impact the environment and society?
Outside-in: How do sustainability topics affect business success?
This approach requires a holistic view. Companies must analyze both their impacts and the factors affecting them.
Double materiality fosters a deeper understanding of sustainability risks and opportunities. It helps companies develop sustainable strategies in the long term.
Framework Conditions and Relevance
The double materiality analysis is a central element of CSRD reporting. It considers both the impacts of the company on the environment and society, as well as the influences of sustainability aspects on business success.
EU Legal Framework and the Push for Sustainability Reporting
The Corporate Sustainability Reporting Directive (CSRD) is an important step by the EU to promote sustainable corporate governance. It significantly expands the reporting obligations for companies.
The CSRD aims to improve the transparency and comparability of sustainability information. In the future, companies must report in detail on their impacts on the environment, social issues, and corporate governance.
This new directive affects a large number of companies in the EU. It sets clear standards for reporting and thus promotes a more sustainable economy.
The European Sustainability Reporting Standards (ESRS)
The ESRS form the foundation for the implementation of the CSRD. They define specific requirements for the sustainability reporting of companies.
The standards cover various areas such as environment, social issues, and governance. They provide detailed guidelines for the collection and presentation of sustainability information.
Companies must consider these standards when drafting their reports. The ESRS promotes uniform and comparable reporting in the EU.
Stakeholder Orientation and Sustainability in the Corporate Context
The double materiality assessment takes into account the interests of various stakeholders. Companies must assess the impacts of their activities on different stakeholder groups.
At the same time, they analyze how sustainability aspects influence business success. This holistic view promotes sustainable corporate governance.
Involving stakeholders in the analysis process is crucial. It helps companies identify relevant sustainability topics and adjust their strategy accordingly.
Conducting the Materiality Assessment
The materiality assessment is a central component of CSRD reporting. It requires careful planning, consideration of various perspectives, and effective data management.
Preparation and Planning of the Materiality Assessment
Preparation begins with setting clear goals and responsibilities. An interdisciplinary team should be formed, representing various areas of the company.
Identifying relevant stakeholders and sustainability topics is crucial. Industry standards, competitive analyses, and internal expert discussions can be helpful in this regard.
A detailed timeline and resource planning are essential. The analysis should be conducted and updated regularly to account for changes in the business environment.
Inside-Out vs. Outside-In Perspective
Double materiality requires two different viewpoints:
Focus on the impacts of the company on the environment and society
Analysis of processes, products, and services
Evaluation of positive and negative influences
Outside-In Perspective:
Consideration of external factors and their influence on the company
Inclusion of stakeholder expectations and market trends
Assessment of risks and opportunities for the business model
The combination of both perspectives allows for a comprehensive consideration of sustainability topics.
Data and Information Management
A structured data management system is crucial for a well-founded materiality analysis. Companies should:
Identify relevant data sources (internal reports, stakeholder feedback, external studies)
Establish clear processes for data collection and validation
Observe data protection guidelines and safeguard sensitive information
The use of specialized software can facilitate data collection and analysis. Transparent documentation of methodology and results is essential for sustainability reporting.
Regular reviews and updates of the data foundation ensure that the materiality analysis remains current and meaningful.
Identifying and Assessing Material Issues
The double materiality analysis forms the foundation for effective CSRD reporting. It enables companies to recognize and prioritize relevant sustainability topics.
Understanding Impact Materiality and Financial Materiality
Impact materiality refers to the effects of a company on the environment and society. This includes topics like CO2 emissions, working conditions, and resource consumption.
Financial materiality, on the other hand, focuses on sustainability aspects that affect the company's financial situation. This includes risks and opportunities arising from climate change, regulatory changes, or reputational damage.
The combination of both perspectives allows for a comprehensive examination of materiality. Companies must carefully analyze both aspects to report in compliance with the CSRD.
The Role of EFRAG in Defining Materiality Criteria
The European Financial Reporting Advisory Group (EFRAG) plays a central role in the development of the European Sustainability Reporting Standards (ESRS). It defines the criteria for the materiality analysis.
EFRAG has developed detailed guidelines for conducting the double materiality analysis. These include thresholds and evaluation methods for impact and financial materiality.
Companies must consider these guidelines in their analysis to report in compliance with the CSRD. The EFRAG criteria provide a structured framework for identifying and assessing material topics.
Analysis and Interaction with Stakeholders
Including stakeholders is an essential component of the materiality analysis. Companies must identify relevant stakeholder groups and involve them in the process.
Important stakeholders include:
Employees
Customers
Suppliers
Investors
Authorities
NGOs
Methods for stakeholder engagement include:
Surveys
Interviews
Workshops
Focus groups
The insights gained feed into the materiality assessment. They help to validate internal evaluations and uncover blind spots.
A thorough stakeholder analysis ensures that all relevant perspectives are considered. This increases the quality and credibility of the materiality analysis.
Interpreting and Applying Results
The interpretation and application of the results of the double materiality analysis are crucial for developing an effective sustainability strategy. This process includes creating a materiality matrix and deriving concrete actions.
Creating the Materiality Matrix
The materiality matrix visualizes the results of the analysis and helps prioritize ESG issues. The x-axis represents the company's impact on the environment and society, while the y-axis shows the impact of sustainability aspects on the company.
Topics in the upper right quadrant have the highest priority and require special attention. These may include climate change, resource efficiency, or working conditions in the supply chain.
The matrix also considers sector-specific aspects and regulatory requirements. It serves as a basis for discussions with stakeholders and helps identify risks and opportunities.
Developing a Sustainability Strategy
Based on the materiality matrix, a sustainability strategy is developed. This includes concrete goals, measures, and KPIs for prioritized topics.
The strategy should be integrated into the overall corporate strategy and consider all relevant areas of the value chain. Governance structures must be adapted to ensure implementation.
It is important to regularly review the strategy and adjust it to changing conditions. CSRD-standard reporting should transparently present progress.
Reporting and Communication
The double materiality analysis forms the basis for comprehensive and transparent sustainability reporting. Companies must systematically prepare and effectively communicate their results.
Designing the Sustainability Report under ESRS
The sustainability report under ESRS requires a clear structure and meaningful content. Companies should systematically present the identified material topics and substantiate them with concrete metrics.
A tabular overview of the materiality matrix can visualize the results. It is important to integrate sustainability information into the management report, as required by the CSRD.
The reporting requirements include detailed information on environmental, social, and governance aspects. Companies must articulate their strategies, goals, and progress in these areas.
Communication Strategies for Sustainability Performance
Effective communication of sustainability performance goes beyond the report. Companies should use various channels to reach their stakeholders:
Website: Dedicated sustainability section with interactive elements
Social Media: Regular updates on sustainability initiatives
Press releases: Communicating important milestones and successes
Messages should be clear, consistent, and fact-based. Linking them to corporate goals and values strengthens credibility.
Transparency is crucial: challenges and improvement potentials should also be openly communicated. This fosters trust among stakeholders and demonstrates the seriousness of the sustainability commitment.
Challenges and Best Practices
The double materiality analysis presents companies with complex tasks. Effective strategies for addressing these challenges are critical for the successful implementation of the CSRD requirements.
Addressing the Challenges of Small and Medium-sized Enterprises (SMEs)
SMEs often face unique hurdles in the double materiality analysis. Limited resources and a lack of expertise make implementation challenging.
An effective solution is to utilize standardized industry guidelines. These provide SMEs with a structured approach and save time in identifying relevant topics.
External consultants can support SMEs in the analysis. They bring expertise and help make the process efficient.
Training for employees is also important. It enables SMEs to build internal competencies and conduct the analysis independently in the long term.
Integration into Risk Management and Strategic Decision-Making Processes
Integrating the double materiality analysis into existing corporate processes is crucial for its success. It should not be treated as an isolated task.
A close alignment with risk management is advisable. This way, sustainability risks and opportunities can be systematically identified and assessed.
Incorporating insights from the analysis into strategic decision-making processes is also important. The results should influence business planning.
Regular reviews and adjustments of the analysis are necessary. They ensure that identified topics remain current and relevant.
Outlook and Future Developments
The double materiality analysis will fundamentally change the sustainability reporting of companies. New requirements and expert roles are emerging.
Upcoming Changes from the CSRD and ESRS
The Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) bring far-reaching innovations. In the future, companies must consider both impacts on sustainability and financial risks from sustainability aspects.
The reporting obligation will be gradually expanded. From 2024, initially large publicly traded companies will be affected. In subsequent years, more companies will follow.
One focus will be on the supply chain and social aspects. Companies must identify and manage risks in these areas.
The European Union aims for standardization of reporting. This is intended to improve the comparability of sustainability information.
The Role of Experts and Consulting Firms
Due to the complex new requirements, experts are gaining significance. Their task is to support companies in implementing the double materiality analysis.
Consulting firms develop specialized services and tools. These assist in identifying and assessing sustainability topics.
Experts train executives and employees. They provide the necessary knowledge for conducting the analysis and integrating it into corporate governance.
Collaboration between companies and external specialists will become more intense. Together, they will develop tailored solutions for the specific challenges of each company.
Frequently Asked Questions about Double Materiality Assessment (DWA)
The double materiality assessment is a central element of CSRD reporting. It requires careful execution and consideration of various criteria.
How is a double materiality assessment conducted in the context of the CSRD?
The implementation occurs in several steps. First, relevant sustainability topics are identified. Subsequently, these are assessed from two perspectives: the impacts of the company on the environment and society, as well as the financial impacts on the company itself. Stakeholder surveys and internal workshops are important components of the process. The results are visualized in a matrix that reflects both dimensions of materiality.
What criteria should be considered in a double materiality assessment according to the CSRD?
The CSRD values a comprehensive view. Ecological, social, and governance-related aspects must be included. The analysis should consider both short- and long-term impacts.
Industry-specific peculiarities and the entire value chain must be taken into account. Involving various internal and external stakeholder perspectives is also crucial.
What are the components of an example of double materiality assessment?
A typical example includes a list of relevant sustainability topics. These are represented in a matrix, with the axes "impacts on the environment and society" and "financial relevance for the company".
The topics are positioned in the matrix according to their significance. Additionally, explanations of the assessment methodology and the stakeholders involved can be provided.
In what form can a double materiality assessment be documented and presented?
Documentation is often in the form of a report. This contains the materiality matrix as the central visual element. Tables with the assessed topics and their classification complement the presentation. Graphics on stakeholder engagement and the analysis process are helpful. An explanation of the methodology and conclusions rounds off the presentation.
What significance does double materiality hold for ESG reporting standards?
Double materiality is a core concept of modern ESG reporting standards. It enables a holistic consideration of sustainability aspects. For the CSRD, it is mandatory and forms the basis for selecting the information to report. Other standards like GRI or SASB have integrated similar approaches. Double materiality fosters the comparability and relevance of sustainability reports.
How regularly should a materiality assessment be updated within the framework of CSRD requirements?
An annual review of the materiality assessment is recommended. This allows for current developments and changes in the business environment to be taken into account. A complete reanalysis is usually advisable every three to five years. Special events or significant changes within the company may necessitate an early update. Regular adjustments ensure the continued relevance of the reporting.
Read more articles
What's your potential impact without the spreadsheet struggle?
Join the teams of Tchibo, Panasonic & Haniel and automate now.