Double materiality, introduced in EU reporting standards, recognizes impacts on both society and organizations. It expands sustainability reporting's scope and increases transparency and trust. It aligns with stakeholder expectations, aids investor decision-making, and promotes standardized reporting, ultimately driving sustainable practices and ESG integration.
The EU Corporate Sustainability Reporting Directive (CSRD) is a new reporting framework that will be rolled out in a phased approach from 2024 in Europe. This new regulation is going to replace and improve the previous corporate sustainability reporting policy called Non-Financial Reporting Directive (NFRD), which some companies have already been following.