Pitfalls companies should avoid when conducting a CSRD-aligned double materiality assessment

Understanding the CSRD Double Materiality Assessment Process
  • March 28, 2024

The European Union’s Corporate Sustainability Reporting Directive (CSRD) is a highly impactful regulation that will transform how your company reports sustainability information. By design, the CSRD, in part, aims to raise sustainability reporting standards to the same level as corporate financial reporting by mandating disclosures of certain environmental, social and governance topics. 

To comply with the CSRD, your company will need to identify its material sustainability impacts, risks and opportunities. The required approach for doing so is a “double materiality” assessment, which broadens the concept of materiality from a sole focus on financial materiality to one that includes a view of your impact on stakeholders and society. 

To make the determination of whether a sustainability matter is material from a financial or impact perspective or both, companies will likely need a greater understanding of sustainability matters in their value chain to measure and assess financial and impact materiality. This is likely to be new for many companies.

Common materiality assessment mistakes and how to overcome them

In this environment, it is therefore important for companies to avoid common pitfalls when designing and performing their materiality assessment. To assist, we have outlined some common pitfalls observed when companies conduct a materiality assessment. We list these pitfalls and key insights so that you can avoid making similar mistakes.

How can we help?

At PwC Malta, our Sustainability team has the expertise to help you with various endeavours such as ESG reporting, developing Sustainability, Decarbonisation and Net Zero strategies, and the implementation of sustainable technology and digital solutions. For more information, please reach out to our sector leaders below.

Contact us

Norbert Paul Vella

Norbert Paul Vella

Assurance Partner, PwC Malta

Tel: +356 9945 3843

Claudine Attard

Claudine Attard

Director, Advisory, PwC Malta

Tel: +356 9947 6321

Carl  Zammit la Rosa

Carl Zammit la Rosa

Manager, Advisory, PwC Malta

Tel: +356 7973 8459

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