Double Materiality calls for a 2.0 Mindset
Use these Six Tips to Comply with the Corporate Sustainability Reporting Directive and turn Materiality Assessment into a Source of Competitive Advantage
Double Materiality Assessment, mandated under CSRD, is a cyclical strategic process that pulls together corporate leaders around a carefully-curated data-set to guide priority-setting about corporate risks, impacts and opportunities – seen through the lens of investors, employees, civil society and the environment. The EU’s new Corporate Sustainability Reporting Directive (CSRD) becomes mandatory January 1 2024 for approximately 50,000 firms operating in Europe.
CSRD requires deep attention to what were once considered corporate “externalities” – risks to external stakeholders and the environment. If your firm has annual turnover of €40M and 250 employees or more, you’re required to comply and you need to document and report the process in a detailed, structured, standards-compliant format. But that’s not the only or the best reason to use these tips. The broader definition of corporate sustainability embraced by CSRD can be a source of competitive advantage. Do well by doing good: that’s the essence of the Materiality Assessment 2.0 mindset.
Interested in learning how Future Planet’s Sustainability Lifecycle Management Platform can support your next Materiality Assessment? Reach out, and we’ll be back in touch in a jiffy.