> ## Documentation Index
> Fetch the complete documentation index at: https://docs.matproof.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Double Materiality Assessment

> How to complete your ESRS double materiality assessment in Matproof.

## 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:

```
Impact materiality = Severity × Likelihood
Financial materiality = Magnitude × Likelihood × Time horizon
```

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:

| 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

<Tip>
  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).
</Tip>

<Warning>
  The DMA must be reviewed annually. Material topics can change as your business and external environment evolve.
</Warning>