EFRAG guidance on the ESRS double materiality assessment
EFRAG’s consultation on its double materiality assessment guidance document has now closed. The results will be published in the coming months, but it looks as though their guidance is becoming more finalised. Check it out by submitting your details below.
The document provides direction on the ESRS approach to materiality, including how it is assessed, the criteria required to determine whether sustainability information is material, and how far upstream/downstream in their value chains firms should consider.
When guiding firms through the double materiality assessment, EFRAG outlines several steps that firms could take and requirements that they must comply with. They are outlined in sections including information on identifying actual and potential material sustainability matters, conducting both impact and materiality assessments, guidance for how firms should consolidate these assessments and thresholds for materiality and how firms must report on the results. There is also advice and requirements on identifying key stakeholders to engage as part of the assessment process.
While EFRAG’s guidance for implementing the double materiality assessment process has expanded over the past year, there are still gaps in their guidance. If you want to understand the details of how you can perform an ESRS double materiality assessment for your CSRD disclosures, contact a member of our team.
Alternatively, to find out more about the ESRS metrics and how to comply with CSRD, check out our ultimate guide to CSRD compliance.
