SME Today: What Investors, Regulators and the Public Expect from Double Materiality Assessments
Written By Dr Luan Ho, PhD
Article published by SME Today
A Double Materiality Assessment (DMA) is the structured process through which an organisation determines which environmental, social and governance topics are genuinely significant to its business. It examines materiality from two perspectives: the impacts a company has on society and the environment, and the financial risks and opportunities those same topics create for the organisation itself. When done properly, a DMA provides a clear, defensible basis for sustainability decision-making.
For many organisations, DMAs are first encountered through regulatory requirements such as the Corporate Sustainability Reporting Directive (CSRD). However, its value extends well beyond compliance. A robust DMA helps businesses understand where sustainability issues intersect with strategy, operations and long-term value creation. It allows organisations to prioritise what matters most, rather than spreading effort thinly across a long list of disconnected topics.
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