Conducting a double materiality assessment is a key step in preparing for CSRD reporting.

Double materiality involves assessing both the financial materiality—how sustainability issues impact your business—and environmental and social materiality—how your business impacts the environment and society.

This dual focus ensures that your reporting is comprehensive and aligned with CSRD requirements.

The double materiality process

1) To begin, identify the key stakeholders in your business, including investors, customers, employees, and regulators.

2) Engage with these stakeholders to understand their concerns and priorities regarding sustainability.

2) Next, gather data on how your business impacts the environment and society, as well as how external sustainability issues, like climate change or social unrest, could affect your operations.

4) Once you have this data, prioritise the issues that are most significant from both perspectives. These will form the basis of your CSRD report.

A thorough double materiality assessment not only helps with compliance but also provides valuable insights into your company’s sustainability risks and opportunities.

For more detailed guidance, explore resources like our free CSRD reporting guide.