The double materiality assessment requires time and care

The double materiality assessment is a key component of CSRD reporting. It is also a strategic and collaborative process that requires time, resources, and the commitment of the entire company. A thorough assessment of double materiality also forms the foundation of the entire ESRS report.

This was revealed in a survey commissioned by IR Partners and UseLess Company, which sought to gather companies’ experiences regarding the challenges and solutions of sustainability reporting. The results were presented in the “Experiences with CSRD Reporting” webinar on December 3, 2024.

34% of respondents felt that the biggest challenges in implementing double materiality were the adequacy of their own resources and the division of responsibilities within the company. In addition, 32% of respondents found interpreting standards and guidelines to be challenging.

Jutta Valkeinen from Lounea reported that the double materiality process at Lounea took approximately 4–6 months. Time was required to engage stakeholders, secure the participation of the organisation’s own management, and coordinate schedules. “We decided to embark on the process with a good partner and wanted to do it thoroughly. We are pleased that we proceeded this way and feel that we succeeded in carrying out the process well and comprehensively. New themes emerged during the process that will help develop the company’s business,” Jutta noted.

Tapio Nelimarkka of Relais Group emphasises the scope of the work required to meet reporting requirements and notes that a careful materiality assessment is the foundation for fulfilling them: “If the double materiality process is carried out carefully, data collection, reporting, and setting future goals will be easier and clearer.” He also noted that everyone involved in materiality and reporting is facing a new challenge.

💡 Hanne Mäkelä from IR Partners sums up the key message:

“The most important aspect of a double materiality assessment is to carefully identify the key sustainability impacts of the company’s business operations and the resulting business opportunities and risks. Thorough groundwork lays the foundation for the strategic development of sustainability efforts, facilitates future reporting, and helps focus resources on the right priorities.”

Tuntuuko, että olet yksin CSRD-haasteiden kanssa? Kiinnostaako liittyminen CSRD-vertaisverkostoon? Ilmoita kiinnostuksesi sähköpostitse hanne.makela@irpartners.fi.