Due to the more demanding requirements surrounding the Double Materiality Assessment (DMA) under CSRD and the uncertainty caused by the ESRS guidelines still being in a draft state (expected publication of the 12 ESRS standards by July 2023), many organizations struggle with the execution of a CSRD-aligned Double Materiality Assessment. Although more light will be shed in August 2023 with the expected publication of ESRS guidelines on the preparation of the double materiality analysis, management of the value chain and gap analysis of the data points, many organizations reached out to us asking to receive more guidance in the meantime. This was also reflected in the high number of questions we received after our Double Materiality webinar and before the roundtables as well as the great interest that our DMA-events have sparked. The majority of our roundtable’s participants stated that they have not yet started their Double Materiality journey (31%) or are still at the beginning (39%). The minority has fought its way midway through the assessment (12%), is getting towards the end (8%) or has already managed to finish their DMA (7%).
After collecting the numerous questions, the participants shared with us, the following main categories were identified where organizations are still tapping in the dark:
The download attached contains the detailed answers to these 10 most frequently asked questions.
Undeniably, conducting a Double Materiality Assessment is a time- and resource-intensive task, but can also be seen as an exercise that adds a lot of value if it goes beyond compliance and simple disclosure. By incorporating a strategic and long-term lens into the assessment, businesses are able to identify opportunities to enhance their sustainability performance, strengthen stakeholder relationships, and ultimately drive business growth.
One organization that effectively used its DMA results to determine its strategic direction is Arkema. After conducting its Double Materiality Assessment in 2022, the company used the outcomes to update its priorities and targets and aligned its CSR commitments with the material topics identified by the DMA. This allowed Arkema to ultimately strengthen its sustainability strategy and accelerate its ESG performance.
Although businesses do not yet have to disclose their CSRD-aligned Double Materiality Assessment and smaller-sized organizations still have some time to prepare, we strongly recommend complying voluntarily and already start your DMA work as soon as possible.
If you would like to know more about double materiality or require assistance with your double materiality assessment, get in touch with Johana Schlotter, at Johana@finchandbeak.com or call +31 6 28 02 18 80 to discuss how Finch & Beak can support you.
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