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What is double materiality?

CSRD requires a double materiality assessment (DMA) — the process of identifying which sustainability topics are material from two perspectives:
  1. Impact materiality — How does your company affect people and the environment? (e.g., your Scope 1/2/3 emissions, labor practices in your supply chain)
  2. Financial materiality — How do sustainability topics affect your company’s financial performance? (e.g., climate risks to your assets, regulatory costs)
A topic is material if it meets either threshold — you only need to report on material topics.

Running a DMA in Matproof

Step 1: Stakeholder input

Navigate to CSRD → Double Materiality → Stakeholder Survey. Invite internal and external stakeholders to rate sustainability topics by:
  • Severity of impact (scale, scope, irremediability)
  • Likelihood of occurrence
  • Financial significance
Matproof sends a survey link and aggregates responses automatically.

Step 2: IRO identification

IROs = Impacts, Risks, and Opportunities. For each ESRS topic, Matproof helps you identify and document:
  • Impacts — actual or potential effects on people/environment
  • Risks — sustainability-related financial risks
  • Opportunities — positive financial effects from sustainability actions
Use the IRO matrix in the platform to rate severity and likelihood.

Step 3: Materiality scoring

Matproof calculates a materiality score for each topic based on:
Topics scoring above your threshold are marked material.

Step 4: Materiality statement

Once complete, export your materiality statement — a required disclosure for CSRD reporters explaining your assessment process and conclusions.

Which ESRS topics to assess

You must assess all ESRS topics:

Tips

For your first DMA, focus on getting stakeholder input from at least 3-5 internal functions (finance, operations, procurement, legal) plus 2-3 external stakeholders (major customers, suppliers, or NGOs).
The DMA must be reviewed annually. Material topics can change as your business and external environment evolve.