Double Materiality as a Basis for Identifying Impacts Related to Sustainability Issues

Abstract

Sustainability is a major challenge for organizations, both in terms of its reporting and in terms of conducting environmentally and socially sustainable activities themselves. This article addresses sustainability with a particular focus on the environmental part. The concept of sustainable development is presented in the context of challenges arising from international and European law. The aim of the article is to analyze and present the most important determinants, legal regulations and guidelines for conducting and reporting the sustainability process based on a double materiality analysis, which results from the Corporate Sustainability Reporting Directive (CSRD) and the related European Sustainability Reporting Standards (ESRS). It also discusses the constituent elements of a double materiality analysis based on two perspectives: impact materiality and financial materiality. This analysis provides the basis for guiding an organization’s sustainability process.