The European Commission published the first of the omnibus packages to simplify and streamline sustainability reporting requirements. The package includes draft proposals to delay and amend the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), and the EU Taxonomy and Carbon Border Adjustment Mechanism (CBAM).
The Commission proposed far-reaching amendments and delays to the regulations that must go through the legislative process. Notably, some fundamental reporting areas under the CSRD remain unchallenged, including the requirement for companies to identify impacts, risks, and opportunities (IROs) through a double materiality assessment.
A double materiality assessment requires companies to assess financial materiality (outside-in perspective) and impact materiality (inside-out perspective) when determining which sustainability topics to report on. The following step-by-step guide outlines how to conduct a CSRD-compliant double materiality assessment, referencing relevant European Sustainability Reporting Standards (ESRS) underlying the reporting directive.
New to the CSRD? Check out our CSRD-ESRS explainer here.
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