Double Materiality Assessment

Comply with CSRD and understand your ESG risks and impacts. ECG conducts full double materiality assessments to guide strategy and reporting.

A double materiality assessment is a comprehensive evaluation that is now central to modern sustainability strategy and regulatory compliance. Mandated by frameworks like the EU’s Corporate Sustainability Reporting Directive (CSRD), this approach moves beyond traditional risk management to provide a holistic view of your business’s role in the world. At ECG, our double materiality assessments are meticulously aligned with the latest GRI Standards and CSRD requirements, ensuring a complete evaluation of both external impacts and internal financial risks.

What is Double Materiality?

Double materiality requires a company to consider two perspectives simultaneously:

Financial Materiality (Outside-In): How sustainability and ESG issues create financial risks and opportunities for the company’s performance and enterprise value.
Impact Materiality (Inside-Out): How the company’s own operations and value chain impact society and the environment, both positively and negatively.

An issue is material if it is significant from either or both of these perspectives.

Why are Double Materiality Assessments Essential?

Conducting a double materiality assessment is crucial for navigating the evolving business landscape.

Ensure Regulatory Compliance: These assessments are essential for complying with regulatory frameworks like the CSRD that require disclosure of non-financial information.
Enhance Risk Management: Gain a more holistic view of your company’s performance and risks by identifying emerging ESG issues before they impact your bottom line.
Improve Stakeholder Engagement: The process facilitates meaningful dialogue with investors, customers, and employees, enhancing transparency and trust.
Drive Long-Term Value: By integrating sustainability into core business practices, you align your strategy with the issues that matter most for long-term, sustainable growth.

Our Double Materiality Assessment Process

Leveraging deep sustainability expertise and streamlined tools, we efficiently identify the key areas of focus tailored to your organization. Our process includes materiality mapping, impact assessment, stakeholder engagement, and strategy integration to provide a clear path forward.