Double materiality is presented as a way to address social, environmental, and economic challenges, not only with an impact perspective, but also a financial one.
The year 2023 marked a significant evolution in the standards for preparing sustainability reports, especially highlighting the new perspective adopted in the materiality analysis.
Double materiality represents an evolution with respect to the traditional approach and arises as a requirement of the new Corporate Sustainability Reporting Directive (CSRD) of the European Commission and is a response to the increasingly active demands of investors, shareholders, and other interest groups on sustainability issues.
Although the fundamental objective of the exercise continues to be to identify and prioritize the most significant issues for the organization’s sustainability strategy, the novelty lies in the inclusion of the financial perspective. Now, not only is the opinion of interest groups considered in terms of impact, but the financial risks and opportunities associated with sustainability issues on the economic performance of the organization are also evaluated.
Our analysis process follows the following steps
- Context assessment: involves understanding the nature of the company, its value chain, relevant regulations, and the identification of stakeholders.
- Identification of material themes: involves a qualitative study that covers the industry benchmark, international standards, and the organization’s sustainability strategy.
- Evaluation of interest groups: involves assessing the significant effects that the organization has on the economy, the environment, and people, including respect for Human Rights.
- Investing world prioritization: evaluates non-financial aspects (environmental, social or governance) according to their probability of affecting the financial situation or performance results of the company.
- Materiality matrix: combines both perspectives to identify strategic, priority, and emerging sustainability issues for the organization.
Max Bensimon
About done!
done! is a strategic sustainability agency with the mission of using creativity to enhance the positive impact of business on the environment and people. Among its services, it offers sustainable brand strategy, double materiality analysis and ESG Reports.
about Max Bensimon
Specialist in reporting, strategy, and creativity oriented to sustainability.
Done Strategy Director with more than 10 years of experience in preparing sustainability reports under international standards such as GRI, SASB, and local regulations.
Graduate in Social Communication from the University of Buenos Aires.
