What is Double Materiality?
CSRD / ESRS cornerstone
Double materiality means you assess sustainability topics in two ways: (1) Financial materiality—how sustainability issues could affect enterprise value; and (2) Impact materiality—how your operations and value chain affect people and the environment.
Related: CSRD • ISSB (IFRS S1/S2)
Two lenses, one decision
Financial materiality
Which sustainability risks/opportunities could affect revenue, costs, assets, liabilities, or cost of capital?
Impact materiality
Where do you cause, contribute to, or link to significant impacts on people and environment across the value chain?
A defensible double materiality method
- Define topic universe: ESRS themes + sector specifics + stakeholder expectations.
- Map stakeholders & value chain: where impacts occur and where data can be sourced.
- Score impact materiality: severity + scale + scope + irremediability; plus likelihood.
- Score financial materiality: link to enterprise value; time horizons; scenarios.
- Validate: cross-functional review + leadership sign-off + documented rationale.
- Output: materiality matrix, disclosure index, data owner map, evidence plan.
RSustain UK supports advisory & implementation. No statutory assurance.
Make materiality audit-ready
We help you run a structured assessment, document the evidence trail, and translate outputs into ESRS/ISSB disclosures.
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