Navigating Double Materiality

Nuria Spijker

By Nuria Spijker

Senior Researcher Sustainability

Xavier Baeten

By Xavier Baeten

Professor of Reward & Sustainability

04 November 2024
insights-double-materiality

This white paper offers a comprehensive guide on Double Materiality (DM), an approach that integrates both financial and impact perspectives in corporate sustainability. It explains DM’s importance in aligning company strategies with evolving regulations, especially the EU's Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS). DM is highlighted as a tool for companies to understand both their financial risks and their impacts on society and the environment. Through a five-step Double Materiality Assessment (DMA), companies are guided in planning, identifying material topics, assessing impacts, integrating findings into reports, and using results for strategic decisions.

The paper also addresses challenges in data collection, balancing stakeholder expectations, and ensuring compliance. Case studies from companies like Coca-Cola, OMV, and Storebrand show how leading firms successfully implement DM in reporting and strategy, enhancing transparency and resilience. Overall, this paper advocates that DM is essential for regulatory compliance and a pathway to sustainable growth and value creation.

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Nuria Spijker

Nuria Spijker

Researcher Sustainability