Double materiality
CSRD concept that assesses both the financial impact of sustainability topics on the company and the company's impact on society and the environment.
Double materiality is one of the core concepts of the CSRD and ESRS. A topic is material — and therefore reportable — if it meets either of the two perspectives.
"Inside-out" (impact materiality) describes how business activities affect people and the environment. "Outside-in" (financial materiality) describes how sustainability topics create risks and opportunities for the company's financial position.
The materiality assessment is the foundation for the scope and content of the entire sustainability report.