Double materialitymeans a company must reportnot only how ESG risks impact financial performancebut alsohow the company’s activities impact society and the environment.
For example, under theEU Corporate Sustainability Reporting Directive (CSRD), companies must disclose:
Financial materiality(how ESG issues affect financial performance)
Impact materiality(how the company affects the environment and society)
[References:, European Commission’sCSRD & Double Materiality Framework, Global Reporting Initiative (GRI) Standards, Principles for Responsible Investment (PRI) ESG Reporting Guidelines, ========, , ]
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