CSRD & ESRS
Double materiality
Also known as: Double materiality assessment · DMA
The ESRS principle that a sustainability matter is reported if it is material from either an impact or a financial perspective, or both.
What it means
Double materiality is the ESRS principle under which a sustainability matter is reported if it is material from either of two perspectives, and assessing both is what makes it “double”.
The two perspectives
| Impact materiality | Financial materiality | |
|---|---|---|
| Direction | Inside-out | Outside-in |
| The question | How do our activities affect people and the environment? | How do sustainability matters affect our business? |
| Example | Emissions, working conditions, pollution. | Carbon-price exposure, physical climate risk to assets. |
Why it matters
The double-materiality assessment determines which topics and which ESRS disclosures an undertaking must report. It is the gate that decides the scope of the sustainability statement (ESRS 2 disclosures stay mandatory regardless).
How it relates to nearby concepts
Impact materiality maps to a company's impacts; financial materiality maps to its risks and opportunities, which together are the IROs the company discloses. It contrasts with the single (financial-only) materiality used by the ISSB.
Common misunderstandings
- A topic must be material from both perspectives: It only needs to be material from one (impact or financial) to be reported.
Statera ties evidence to each material datapoint. See the CSRD / ESRS framework:
CSRD Sustainability Statement (ESRS) →Sources
Last reviewed: 19 June 2026
See how Statera handles this in practice
Statera carries structure, controls and filing evidence through every reporting cycle. Request a demo to see it end to end.
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