In developing the materiality matrix, our main objective is to identify sustainability-relevant issues, taking into account the CSR Directive and EFRAG Directive, involving the organisation’s stakeholders and applying the principle of dual materiality.

Materiality assessment is a central element of responsible corporate governance

Supporting the following:

  • the identification of stakeholder expectations to serve as a sound basis for making strategic decisions that take into account stakeholder needs,
  • the development of a strong, stakeholder-driven ESG focus, which is the basis for greater engagement, goal setting and credibility,
  • help in identifying which KPIs the organisation should focus on.
  • establishing why the development of a sustainability strategy is a necessity that underpins business communication and decisions on return on investment,

The ESRS materiality analysis is based on the principle of dual materiality and draws heavily on the materiality assessment prevalent in the GRI standard. The analysis identifies impacts, risks and opportunities for the organisation and is a key tool for determining the content of the sustainability report: which ESRS to use and exactly what content to report depends on what the company considers material.

Dual materiality

Dual materiality is an extension of the key accounting concept of the materiality of financial information. The concept of dual materiality takes this one step further: not only can climate-related impacts on a company be material, but the company’s impacts on climate – or any other dimension of sustainability – as well (under the environmental, social and governance, i.e. ESG labels). This concept of materiality is embedded in the CSRD framework.

  • The financial materiality of sustainability issues outlines how sustainability affects the financial performance and prospects of the company.
  • The materiality of sustainability effects defines how a company’s activities, operations and value chain impact external stakeholders and the wider world.