Double materiality analysis

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Double materiality assessment – the first step toward sustainability reporting

A double materiality assessment is a key first step for companies preparing to report under CSRD or VSME. The assessment helps identify which sustainability topics are most relevant to the business – both in terms of financial impact and the company’s impact on climate, environment, and society.

At Aider, we support companies with a structured materiality assessment that provides a clear foundation for sustainability reporting, strategy, and prioritization.

What is a double materiality assessment?

A double materiality assessment evaluates which sustainability topics are material to a company from two perspectives:

Impact perspective
How the company affects climate, environment, people, and society. This includes factors such as climate impact, resource use, and human rights.

Financial risk perspective
How sustainability factors affect the company’s financial performance, risk exposure, and future opportunities.

Together, these perspectives provide a comprehensive view of which sustainability topics the company must report on under CSRD or VSME.

A thorough materiality assessment makes it easier to prioritize effectively and focus on the issues that truly matter – both for the business and for society.

 

Aider’s advisors have developed a structured methodology for double materiality assessments, based on EU guidelines and the frameworks underpinning CSRD and the EU Taxonomy.

 

Our methodology makes it easier to

• Identify which sustainability topics are material

• Conduct a well-documented materiality assessment

• Establish a solid foundation for sustainability reporting

• Link sustainability efforts to the company’s overall strategy

• Combine regulatory expertise with practical experience across industries

• Deliver an analysis that not only meets reporting requirements but also creates value for the company’s continued development

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What needs to be in place before the analysis?

To carry out a robust double materiality assessment, the company must have a clear understanding of how it impacts its surroundings.

This is particularly important in the following areas:

Climate impact
The company’s climate impact must be mapped through a climate accounting process that captures emissions across both operations and the value chain.

Human rights in the value chain
The company must have an overview of risks related to human rights within its own operations and across the supply chain, including through due diligence assessments in line with the Transparency Act.

If these elements are not already in place, Aider can support you with both climate accounting and due diligence assessments as part of the preparation for the materiality analysis.

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A materiality assessment helps your business to

Prioritize the right sustainability topics

Meet the requirements of CSRD or VSME

Identify climate risks and opportunities

Understand its own climate impact

Strengthen the basis for management decision-making

Frequently asked questions about double materiality assessments

• • What is a double materiality assessment?

    A double materiality assessment evaluates which sustainability topics are material to a company, both in terms of its impact on the environment and society, and from a financial perspective.

  • What is the difference between a materiality assessment and a double materiality assessment?

    Traditional materiality assessments typically focus only on what is important for the company. A double materiality assessment considers both the company’s impact on its surroundings and how sustainability factors affect the company financially. 

  • Is a double materiality assessment required under CSRD?

    Yes. For companies reporting under CSRD, a double materiality assessment is a mandatory foundation for sustainability reporting. 

  • Is a double materiality assessment required under VSME?

    No. For companies reporting under VSME, a double materiality assessment is not a mandatory requirement. However, it is highly valuable for sustainability reporting, as well as for the company’s strategy and development. 

  • How long does a double materiality assessment take?

    The timeline varies, but the process typically takes from a few weeks to a couple of months, depending on the company’s size and complexity. The initial assessment is usually the most time-consuming, while subsequent years often require only a simplified update. 

  • Do we need a climate accounting report before conducting a materiality assessment?

    A climate accounting report provides important insight into the company’s climate impact and is often necessary to conduct a robust materiality assessment. 

I'm ready to help!

• 

  Camilla H. H. Gulsett

  Senior Manager • ESG Manager • Oslo

  camilla.gulsett@aider.no

  +47 97 71 91 21

  LinkedIn

• 

  Betina Mele Haveland

  Director • Bergen

  betina.haveland@emisoft.com

  +47 91 57 88 98

  LinkedIn

Please do not hesitate to contact us.