Double materiality assessment
Double materiality assessment means that a company must assess sustainability themes from two perspectives:
- How the company’s operations have an impact on people, the environment and society (impact)
- How sustainability factors affect the company’s financial position, risks and opportunities (financial)
If a certain theme is significant from both perspectives (impact and financial), it is called double materiality. However, the theme becomes reportable when it is significant from either one of the two perspectives.
The double materiality assessment helps to identify the company’s most relevant sustainability issues and the related impacts, risks and opportunities (IRO = Impacts, Risks & Opportunities). For those companies subject to CSRD reporting obligations, the assessment determines which themes must be reported. Outside of the reporting obligation, it helps to understand how sustainability affects the company’s operations and where there is development potential.
The double materiality assessment is also an effective tool in the early stages of sustainability work, and it is worth including it as part of the strategy work.
How can we help you?
- We can identify and analyze your company’s impacts, risks and opportunities (IRO)
- We can collect the necessary data and guide the analysis of the data
- We can map key stakeholders – both internal and external – and bring their perspectives to light
- We can help prioritizing the most central and meaningful sustainability themes for your company
- We connect the results to the strategy and goals and offer concrete development suggestions for further work
