What is double materiality in ESG?

By: Trademagazin Date: 2024. 04. 11. 12:12

Based on the Sustainability Act (Act No. 108 of 2023) and the EU CSRD (Corporate Sustainability Reporting Directive) adopted in December, large companies must conduct a double materiality assessment that covers their entire activity. Dr. András Balásfalvi-Kiss, head of ESG and Sustainability at Grant Thornton, explains what this actually means and why companies should focus on it.

The dual materiality assessment plays a crucial role in optimizing the allocation of resources to achieve CSRD compliance, while providing invaluable insights for shaping the company’s overall strategy:

It helps identify significant business opportunities, risks, trends and brand attributes.
It makes it easier to decide which ESG topics and initiatives the company should prioritize.