Double materiality analysis

Materiality analyses have long featured in sustainability reports, but have traditionally focused on one side only: how the company affects the world around it. A double materiality analysis gives a two-dimensional perspective and also includes how changes in the world around the company in turn affect it financially, giving a more nuanced picture of how the company interacts with its surroundings.

CSRD does not specify which stakeholders should be included in dialogues, which leaves companies some flexibility. An important rule of thumb is to thoroughly understand which parties either affect or are affected by the company's activities, and to make sure they are represented in the analysis. Generally, this includes key people from the board and employees, as well as external parties such as investors, banks and local communities. We can help you make that assessment.

The revised ESRS standards mean that the materiality assessment becomes more principles-based and flexible. Companies can now choose between, or combine, top-down and bottom-up approaches. In addition, at each new reporting date, companies must actively consider whether changes in their operations, business relationships or the external environment affect the materiality assessment.

Under the revised ESRS, companies must actively assess at each reporting date whether anything has changed that affects materiality. This does not mean the analysis has to be redone from scratch every year, but a structured review and update is necessary. We help you set up routines for ongoing follow-up.

It depends on the size and complexity of the company and how much supporting material is already in place. We tailor the approach to your situation and circumstances.