Join our Director & Head of Consulting ESG, Mike Van Kauvenbergh, and Senior Consultant, Manon Quinti, on Thursday, 12 June, as of 10:30am, for the next in our series of ESG webinars!
The double materiality analysis (DMA) is a central concept in several key ESG regulations and frameworks, particularly those emerging from the European Union. It encompasses two dimensions:
- Financial materiality: how sustainability issues influence the company’s financial performance and enterprise value.
- Impact materiality: how the company’s activities affect society and the environment.
The Corporate Sustainability Reporting Directive explicitly mandates double materiality as the basis for sustainability reporting. Similarly, the Sustainable Finance Disclosure Regulation (SFDR), while not using the term directly, mandates the disclosure of both sustainability risks and Principal Adverse Impacts (PAIs).
Elsewhere, the EU Taxonomy Regulation, though not explicitly framed around double materiality, emphasises impact materiality by assessing whether economic activities substantially contribute to environmental objectives. The International Sustainability Standards Board (ISSB), through its IFRS S1 and S2 standards, adopts a financial materiality perspective focused on investor needs.
If DMA is so successful, it is thanks to its strategic relevance. It is a critical step in shaping a coherent ESG strategy that aligns with the company's core priorities. By identifying and ranking the most significant impacts, risks, and opportunities, DMA supports organisations in addressing both stakeholder expectations and financial exposure. This approach empowers businesses to prioritise effectively and turn ESG challenges into opportunities for long-term value creation and resilience.
Whether you're just getting started or looking to refine your strategy, this webinar session will help you turn the double materiality assessment into a lever for value creation.
Want to learn how the double materiality assessment can become your next competitive edge?
Register now by contacting the team on events@atoz.lu.