The EU’s Corporate Sustainability Reporting Directive (CSRD) is having dramatic impacts on the ESG reporting landscape, mandating extensive sustainability disclosures not just in the EU, but across the globe for organizations with operations in the EU that meet certain criteria (revenues, employees, and assets).
A double materiality assessment (DMA) is a prerequisite for CSRD-aligned sustainability reporting. Companies must conduct a DMA to determine which disclosures are necessary for their compliance with ESRS. A double materiality assessment considers both how a company’s activities may materially impact the environment and society, and how sustainability matters may impact the company’s finances, resulting in a set of topics on which they will be required to report.
G&A’s DMA methodology expands on our proven approach to GRI-based materiality assessments and is designed with external assurance in mind.
Our analysis will incorporate:
- Comprehensive desk research to inform a comprehensive list of actual and potential impacts, risks, and opportunities associated with the ESRS topics, sub-topics, and sub-sub-topics
- Internal and external stakeholder engagement with a variety of approaches such as research, surveys, interviews, and/or facilitated group workshops
- Assistance with structuring governance processes and policies for oversight of the double materiality process and decision-making
- Maintaining proper documentation to support a limited level of assurance of the double materiality process
- Value chain and stakeholder mapping workshops and development
- Guidance on determining a materiality threshold and ESRS reporting requirements
For further information please check out:
- G&A Service: ESRS Gap Analysis (G&A highly recommends pairing the DMA with an ESRS Gap Analysis as the next step to building a roadmap to compliance with CSRD)
- G&A Resource Paper: CSRD Requirements for Non-EU Companies
- G&A Quick Reference: European Sustainability Reporting Standards
- G&A Pathfinder Webinar: