Double materiality is now a core requirement under the EU’s Corporate Sustainability Reporting Directive (CSRD) — yet it remains one of the most misunderstood concepts in ESG reporting.
This video explainer clarifies what double materiality actually means, why it matters under CSRD, and how organizations should approach materiality assessment as a decision-ready process, not a compliance checkbox.
Rather than asking only what affects the company financially, double materiality requires organizations to assess:
Impact materiality — how business activities affect people and the environment
Financial materiality — how sustainability issues create financial risk or opportunity
Together, these dimensions redefine how ESG priorities are identified, governed, and integrated into strategy.
In this explainer, I cover:
What double materiality means under CSRD
The difference between impact and financial materiality
Why traditional materiality assessments fall short
How double materiality supports risk management, governance, and strategic resilience
🎯 Free Double Materiality Toolkit
This video includes access to a free double materiality toolkit designed to help organizations structure a CSRD-aligned assessment, identify priority ESG issues, and move from reporting requirements to strategic clarity.
