Double materiality in six steps
A practical sequence for a first CSRD materiality assessment that will survive assurance.
Double materiality is a process, not a matrix. Assurance providers will test how you got to your list of topics as much as the list itself.
1. Understand the context
Map your business model, value chain and stakeholders. Most missed topics hide upstream or downstream.
2. Identify impacts, risks and opportunities
Build a long list from ESRS topics, sector peers, incidents and stakeholder input.
3. Assess impact materiality
Score actual and potential impacts on severity — scale, scope and how hard they are to remedy — and on likelihood for potential impacts.
4. Assess financial materiality
Score risks and opportunities on the likelihood and magnitude of their effect on cash flows, cost of capital or access to finance.
5. Set thresholds and consolidate
Agree thresholds before you see the results. A topic is material if it crosses either threshold.
6. Document and validate
Record sources, scores, thresholds and who signed off. Test the outcome with internal experts and affected stakeholders. This file is what your assurance provider will ask for first.