When you know which business areas are most material to your company from a sustainability perspective, you can focus your efforts on what truly matters—and use your resources more efficiently.
WHY IS A MATERIALITY ANALYSIS THE CORNERSTONE OF SUSTAINABILITY WORK?
“A materiality analysis is the foundation not only of sustainability efforts, but also of responsible communication. Without it, it’s impossible to build plans that are durable, credible, and actionable, let alone communicate effectively. It’s a vital part of any corporate responsibility toolkit, and a mandatory element for larger companies.”
Mandatory and essential part of sustainability work
CSRD-based sustainability reporting requires a double materiality analysis as a prerequisite. Without it, it’s impossible to identify the sustainability factors that must be included in the report—nor is it feasible or meaningful to report on everything.
However, reporting is not the only reason this analysis is crucial. Its results help guide sustainability work strategically and systematically, ensuring actions and resources are directed appropriately. DMA (Double Materiality Analysis) is a core tool in the sustainable business toolbox for large companies.
Which kind of companies does this apply to?
When 2 out of these 3 criteria are met: Revenue over €50M, balance sheet total over €25M, more than 250 employees.
NOTE: These thresholds are current but will change with the upcoming Omnibus directive.
Possibly voluntary but highly relevant
Small and medium-sized enterprises are not yet legally required to prepare sustainability reports. However, they are often part of value chains where larger companies demand responsibility data from their suppliers. This is where understanding your own key sustainability issues becomes essential.
These demands from the value chain are not the only reason why it is important to conduct a dual materiality analysis. The results of the analysis also help to lead sustainability work strategically and systematically and direct actions and resources to the right things – also in the SME sector.
Which kind of companies does this apply to?
SMEs as defined by the VSME framework:
Revenue under €50M, balance sheet total under €25M, fewer than 250 employees
The foundation of impactful sustainability communication
No matter the size of the company, its competitiveness depends on the effectiveness of its communication. Credibility in sustainability messaging starts with understanding materiality. Messaging about irrelevant topics can backfire and lead to accusations of greenwashing.
Identifying material themes is the cornerstone of impactful sustainability communication. Without it, it’s impossible to build communication plans that are long-lasting, solid, and trustworthy.
We have developed our own process specifically for this purpose. It combines elements of materiality analysis with a current-state audit and competitor landscape assessment.
What kind of companies does this apply to?
Any company that wants to communicate its sustainability efforts effectively and transparently—without the risk of greenwashing.
A double materiality analysis is the cornerstone of responsible business. It helps a company identify its most important sustainability topics from two perspectives: how the company impacts the environment and society, and what financial risks and opportunities arise from those impacts. Without this analysis, responsibility work is like shooting in the dark—wasting money and resources with low impact.
Now is the time to act. When your goal is to run your business more sustainably, inspire individuals to be more responsible, or communicate good deeds—we’re here to help.