DoubleMateriality.org

"the double materiality principle should remain a cornerstone of the sustainability reporting" It is crucial to start from the needs of sustainability reporting users (banks, insurance companies, asset managers, intermediaries, fintechs, consulting firms, law firms, etc.) therefore broader than the users of financial reporting. Paris Europlace brings together over 600 stakeholders from the french financial ecosystem. Institut de la Finance Durable Jean-Charles Simon Olivier Vigna Perrier Yves Augustin de Romanet Cécile Goubet Xavier Girre Valérie Baudson #ESRS #OMNIBUS EFRAG International Sustainability Standards Board (ISSB)

This latest report on the state of business sustainability in the United States by Reuters offers some fascinating insights (https://lnkd.in/e8PPKnQf). Here is a summary of the key points: 1️⃣     Sustainability Reporting is Mainstream (pp. 5–6) Sustainability reporting is now standard practice among major U.S. businesses, with 99% of the top 100 companies publishing reports and 88% securing third-party assurance. Nearly half of reporting companies conduct materiality assessments, and 11% have embraced double materiality approaches. Additionally, 80% request Scope 3 data from suppliers. These efforts are recognized internally as value-generating with 95% of companies reporting reputational benefits, and 74% linking reporting to revenue growth.   2️⃣      Small and Mid-Sized Companies Are Engaged (pp. 6–7) Mid-market and small businesses are actively participating in the sustainability transition. About 75% of mid-sized firms are preparing for disclosure obligations, and 53% of small businesses recognize the reputational upside of reporting, 27% already report on sustainability issues. Moreover, 68% of small firms report a positive return on sustainability-related investments, whilst 41% said that sustainability gives them competitive advantage   3️⃣      ESG Investment Remains Resilient (p. 7; pp. 25–26) Despite political and cultural pushback, ESG investment remains robust. In 2024, ESG-labeled assets in the U.S. totaled $6.5 trillion. A significant majority (77%) of institutional investors are allocating capital to the energy transition, and 66% now have dedicated ESG portfolios.   4️⃣     ESG Backlash is Real but Complex (pp. 23–25) While ESG backlash is intensifying (61% of large companies expect it to worsen) most companies are holding their course. Greenhushing is becoming more common, with a 26% drop in ESG-related press releases since 2022. To navigate the politicized landscape, companies are rebranding their work under terms like “responsible growth” or “sustainability.” Despite the rhetoric, 96% of surveyed companies have kept their targets intact, and 44% of CFOs plan to increase their sustainability investments.   5️⃣      Future Trajectory (pp. 8–10; 13; 25) U.S. companies are moving beyond compliance to view sustainability as a strategic imperative. The emphasis is shifting toward forward-looking metrics, Scope 3 innovation, and product-level impacts or “handprints” rather than just footprints. Sustainability is being embedded across departments, supported by internal champions and technology. According to the report, 80% of CFOs expect the focus on sustainability to remain steady or grow, even in the face of political headwinds. Headlines are all about sensationalism , but the truth is always hidden in the details. The report is text heavy, but very much worth a read if you want to get up to speed on what's really going on the US, sustainability wise.

Tough times... Link in the comment. International Sustainability Standards Board (ISSB) EFRAG Global Reporting Initiative (GRI) Security Exchange Commission IFRS Foundation

💥 CALL FOR APPLICATIONS The European Commission is organising a selection procedure for the position of the Chair of the Sustainability Reporting Board of EFRAG. Applications should be submitted no later than 12h00 (mid-day) on 15/05/2025. EFRAG European Commission European Securities and Markets Authority (ESMA) European Parliament

🎤 Companies are pro-CSRD and pro-DoubleMateriality. - Help demonstrate this. - A large-scale survey has been launched and is rapidly spreading. - Deadline April 30th. Link in comment. WeAreEurope #omnibus #csrd #csddd WBCSD – World Business Council for Sustainable Development Global Reporting Initiative (GRI) Accounting for Sustainability (A4S) EFRAG

Risk Managers want to take care of #DoubleMateriality assessment ✅ This makes a lot of sense, and shows that DMA is gradually becoming an integral part of company processes. Let's hope box-ticking doesn't go too far, as auditors will have a role to play in preventing this. "Our view is that IRO assessments should be driven by the risk function using an ERM methodology, as the entire scope of sustainability risk and opportunities can be addressed through an ERM framework" ERM methodology = COSO and ISO31000 FERMA is the representative organisation of the risk management profession at European level. FERMA | Federation of European Risk Management Associations ANRA Associazione Nazionale Risk Manager e Responsabili Assicurazioni Aziendali AMRAE - Management des Risques et des Assurances de l'Entreprise GVNW - Gesamtverband der versicherungsnehmenden Wirtschaft e.V. NARIM Typhaine Beaupérin Alejandra Lozano Fernández COSO (Committee of Sponsoring Organizations of the Treadway Commission) PRMIA - Professional Risk Managers' International Association ISO - International Organization for Standardization #omnibus #csrd #esg #climatechange #humanrights

👉 Double Materiality is not just about reporting, first example ✅ Aegon : "Even in instances where we use "material", this should not in all instances be deemed to refer to materiality for purposes of our U.S. federal securities filings, as there are various definitions of materiality used by different stakeholders, including but not limited to a more expansive #doublemateriality standard pursuant to the #ESRS that has informed much of our sustainability disclosure. Similarly, while we leverage various frameworks in our disclosures, we cannot guarantee, and language such as "align" or "follow" is not meant to imply, complete alignment with these requirements." Link on the comment. European Insurance and Occupational Pensions Authority (EIOPA) IAIS - International Association of Insurance Supervisors UNDP Sustainable Insurance Forum (SIF) Center for Sustainable Insurance (CSI) Allianz AXA Generali Chubb MetLife Lloyd's Prudential plc International Actuarial Association

Double Materiality arrives on the table of 🇺🇸 US accountants This is an important moment, as it marks the beginning of a potential position with regard to Financial Materiality. It also raises the major question of who the users are and what the objective is. In a world where the auditing profession is wedded to an outdated and increasingly irrelevant definition of the "public interest", we can expect something new, or at least we hope so. Link in the comment. American Accounting Association EAA - European Accounting Association Journal of Accounting Research AICPA IFAC Financial Accounting Standards Board Confederation of Asian and Pacific Accountants (CAPA) EFRAG Global Reporting Initiative (GRI) Karen Osterheld Alessandro Lai International Auditing and Assurance Standards Board (IAASB) #esg #climatechange #accounting

The authors reviewed ESRS 1, ESRS 2, and ESRS E1-E5 "Ground #doublemateriality assessments in scientific evidence of key environmental topics. This will significantly improve the transparency, reliability, and comparability of environmental disclosures. " "The transparency and standardization of the #doublemateriality assessment (DMA) process be improved by letting said process be guided by scientific evidence of environmentally material topics. In line with ambitions to reduce the reporting effort, environmentally material topics can be tailored to specific sectors. This would significantly improve the reliability and comparability of environmental disclosures." Emmy Wassénius Beatrice Crona Shruti Kashyap Véronique Blum PhD Dr Charles Abela Hjalmar Funke Garry Peterson Alice Hughes Alexandra Marques Marten Winter Franziska Schrodt Emma Granqvist Hayley Clements Alke Voskamp Mistra FinBio #omnibus #csrd #esg Stockholm Resilience Centre

Stand Up for Science The Nature Conservancy Harvard University Cambridge University Press & Assessment Stockholm Resilience Centre CNRS Max Planck Society University of Chinese Academy of Sciences Massachusetts Institute of Technology IPCC ITER Organization CERN AAAS Springer Nature National Geographic Society Climate TRACE