Is the double materiality assessment still relevant?

Major changes are taking place on the sustainability front at the moment.

New requirements arise, adjust or disappear altogether, not least as a result of the omnibus package and the changes it brings to the Corporate Sustainability Reporting Directive (CSRD).

For many companies, that means longer deadlines or exemptions from reporting requirements.

The result? Many people breathe a sigh of relief and let go of the accelerator on sustainability work — even when it comes to work with a double materiality assessment (DMA). And that's a big mistake.

Because even in the face of recent changes, the DMA remains a valuable tool with a wide range of strategic benefits that go far beyond compliance.

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Double materiality is still best practice

Sustainability existed long before there was legislation in this area. Even before the CSRD required covered companies to complete a DMA as a basis for reporting, the methodology was recognized as best practice and an existing requirement under already-recognized framework works such as the Global Reporting Initiative (GRI). And for good reason. It provides the necessary structure to identify where your greatest impacts lie and where the most significant risks and opportunities exist.

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Focus on the essential

Many companies risk smearing the butter too thinly when trying to address the entire palette of sustainability topics at once. The DMA helps you identify what is most relevant and provides the most value for your business and the world around you.

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Strategic anchoring

The DMA is the foundation for a sustainability strategy that is holistic, relevant and creates unified direction and action. It ensures that you agree on what really matters internally and externally. It creates focus, commitment and anchoring in management, the organization and among stakeholders.

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Transparency and credibility

With the DMA, you have a basis for why certain topics are a priority. It builds trust with customers, employees, investors and partners.

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Future-proofing reporting

The DMA is not only a requirement for the large listed companies under the CSRD. It is also recognized as best practice and works equally well for those small businesses that want to report on sustainability to customers or owners.

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Conclusion

Even if the rules change, it does not change the fact that a double materiality assessment is one of the most useful tools for bringing clarity and direction to your sustainability work.

To postpone the DMA is to postpone insight, strategy and action. Prioritizing it is investing in a more solid starting point for a resilient business, both today and in the future.