double materiality
CSRD principle: report topics material either to your business (financial) or to people & planet (impact).
Related guide
Double Materiality Assessment: The CSRD CornerstoneDouble materiality is the single most-audited part of a CSRD report. A defensible assessment is more about methodology than about the final matrix.
Related terms
- CSRDEU directive requiring large and listed companies to disclose sustainability information under ESRS.
- VSMEVoluntary reporting standard from EFRAG designed for non-listed SMEs — a simplified alternative to full ESRS.
- PIEPublic-Interest Entity — listed companies, banks, insurers and other entities designated by EU member states.
- materiality assessmentProcess of identifying which sustainability topics are significant enough to disclose under CSRD/ESRS.
- climate transition planA time-bound plan showing how a company will shift its business model to a low-carbon economy.
- TCFDFramework for disclosing climate-related financial risks — now absorbed into ISSB and ESRS E1.