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CSRD spotlight: Demystifying the double materiality assessment
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- ESG Insights
Navigating #DoubleMateriality in #CSRD with #PwC Insights Key Takeaways:
- Double materiality combines impact and financial materiality for holistic ESG reporting.
- Stakeholder engagement and careful mapping essential for accurate materiality assessments.
- Annual updates and thorough documentation crucial for credible, auditable CSRD reporting.
Further Insights
Double Materiality: Introduces a paradigm shift by combining impact materiality (effect on society and planet) and financial materiality (effect on company finances) to guide sustainability reporting under CSRD.
Stakeholder Engagement: Stakeholder engagement is vital for identifying material issues. Direct interaction or indirect methods like analyzing external reports contribute to a robust materiality assessment process.
Effective Assessments: For thorough materiality assessments, leverage existing assessments, integrate risk management processes, and ensure traceability for auditability. Engaging CSRD auditors early in the process is recommended.
Closing Thoughts: As companies embark on the journey of CSRD compliance, integrating double materiality into their strategy not only aligns with regulatory expectations but also presents an opportunity to reassess priorities and realign resources for sustainable growth. How might businesses further refine their approaches to ESG reporting to ensure both transparency and impact?