Full definition
Previous NFRD reporting: financial materiality only. CSRD: mandatory double materiality. Requires rigorous analysis involving stakeholders to identify ‘material’ issues that must be reported in detail. ESRS 2 describes the method. Do not confuse it with simple financial materiality (TCFD/IFRS S2, only climate risks affecting the company’s value), which considers only the ‘climate → company’ direction, whereas double materiality adds ‘company → climate’.