What is double materiality?
CSRD requires a double materiality assessment (DMA) — the process of identifying which sustainability topics are material from two perspectives:
- 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)
- 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
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:
Impact materiality = Severity × Likelihood
Financial materiality = Magnitude × Likelihood × Time horizon
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:
| Topic | Standard |
|---|
| Climate change | E1 |
| Pollution | E2 |
| Water and marine resources | E3 |
| Biodiversity and ecosystems | E4 |
| Resource use and circular economy | E5 |
| Own workforce | S1 |
| Workers in value chain | S2 |
| Affected communities | S3 |
| Consumers and end-users | S4 |
| Business conduct | G1 |
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.
