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Assessments & Strategy
Materiality Assessment & Double Materiality
A Materiality Assessment defines which ESG issues are most relevant to your organisation and stakeholders, and therefore where focus, investment, and disclosure should sit.
Regulatory expectations are moving well beyond single-axis financial materiality. The EU Corporate Sustainability Reporting Directive (CSRD) mandates a double materiality assessment under European Sustainability Reporting Standards (ESRS 1), evaluating both outside-in financial impacts and inside-out impacts on environment and society. The ISSB's IFRS S1 standard applies a financial materiality lens for investor-focused disclosures. GRI Standards apply an impact materiality lens. Without a structured, framework-aligned assessment, organisations risk non-compliant disclosures under CSRD, misalignment with auditors and EFRAG guidance, and inefficient allocation of sustainability resources.
Our approach
A structured double materiality process is designed and delivered in line with ESRS 1 (CSRD), GRI Universal Standards, SASB Standards, and ISSB IFRS S1 as applicable. The methodology incorporates IRO (Impacts, Risks, and Opportunities) identification and scoring per EFRAG's implementation guidance, stakeholder consultation, and validation. Outputs produce a defensible, audit-ready materiality matrix and IRO register aligned with CSRD LSME and VSME reporting requirements.
- Identification of relevant ESG topics and IROs aligned to ESRS sector-agnostic and sector-specific standards
- Peer benchmarking across sector disclosures to inform topic relevance and prioritisation
- Stakeholder identification, segmentation, and engagement per ESRS 1 requirements
- Design and execution of stakeholder surveys and interviews across affected communities and value chain
- Double materiality scoring: impact materiality (severity, scale, irremediability) and financial materiality (likelihood, magnitude)
- IRO register development aligned with EFRAG's ESRS 1 implementation guidance
- Validation workshops with senior leadership and external auditors
- Development of the materiality matrix, IRO register, and supporting documentation for CSRD disclosure
Outcomes
CSRD-compliant double materiality assessment with full IRO register per ESRS 1
Alignment with GRI Standards, SASB, and ISSB IFRS S1 as applicable
Defensible, audit-ready materiality matrix accepted by statutory auditors
Improved stakeholder alignment and transparent disclosure of sustainability impacts
Strong foundation for ESRS-aligned reporting, strategy, and governance
Speak with an expert
The team can walk you through exactly how Materiality Assessment & Double Materiality applies to your organisation's context and objectives.
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