What CSRD Is and Why You Should Pay Attention
The Direct Impact of Double Materiality on Your Company
From Theory to Practice: Turning Double Materiality into Competitive Advantage
Key Recommendations for Effectively Implementing Double Materiality
Double Materiality in the Supply Chain: The Risk Hiding in Plain Sight
Why Dcycle Is the ESG Solution You Need
Frequently Asked Questions (FAQs)
CSRD double materiality isn’t just another sustainability buzzword.
It’s a mandatory requirement already in force, and it directly affects how you report.
We’re talking about looking in two directions:
how ESG risks affect you, and how you impact the environment.
Both count. And both must be reported.
Can we relax? Not really.
If you operate in Europe, or work with companies that do, you have to comply.
The sooner you understand and integrate this,
the better prepared you’ll be to avoid falling behind.
From here on, we’ll explain how this approach works, why it’s key to your strategy, and what you need to start doing right away.
The CSRD is not just another EU regulation.
It’s the new standard for sustainability reporting in companies.
It’s not about writing prettier reports, but about explaining with concrete data how the world affects you… and how you’re affecting the world.
This changes the rules of the game.
Especially if until now you only reported the bare minimum to comply.
Until now, we only talked about financial materiality: which environmental, social, or governance issues affect the business.
Now a second dimension enters: how the company impacts the environment on those same issues.
Both are equally important.
And yes, you must report on both.
The sustainability report can no longer stand alone.
It has to cross financial data with ESG data.
This means integrating what happens outside (with the environment, stakeholders, the value chain)
with what happens inside (risks, profitability, strategic decisions).
If we don’t include the full context, the report is incomplete.
It’s no longer enough to have scattered data in Excel sheets or emails.
We need to structure ESG information in a way that makes it useful for multiple reports.
From emissions to social or governance indicators: everything must be connected.
This approach can’t be handled by a single department.
Legal, sustainability, finance, operations… all must align data and criteria.
The challenge? Getting them to speak the same language and understand this is strategic, not just another requirement.
Once you have your ESG data well-organized, you’re not just complying with CSRD.
You can also use it for Taxonomy, ESRS, ISOs, SBTi, or EINF.
What used to be isolated reports becomes a network of connected data.
And if you do it right, you can save time, money, and headaches.
Experience our platform firsthand, schedule a demo.
Double materiality sounds complex, but it doesn’t have to be.
The key is to bring it down to earth and align it with your actual business reality—without drowning in bureaucracy.
Chances are, you’re already collecting ESG data for other reports.
Use that as your foundation. No need to reinvent anything. What works for EINF or ISO can work for CSRD too, if you structure it properly.
Got internal surveys? Supplier audits? Sustainability indicators?
They all feed into your materiality analysis. You just need to connect the dots.
Don’t prioritize a topic just because it’s trendy.
If your biggest impact is in your supply chain or your transport emissions, that’s where you need to focus, even if it’s not flashy.
Double materiality isn’t a checklist. It’s a tool to help you prioritize what really matters.
Contexts shift. Priorities evolve. Your business changes.
So make sure you review your materiality analysis at least once a year, or sooner if something big happens: a new regulation, a supplier scandal, a reputational issue...
Don’t let your reporting become outdated before it’s even published.
Let’s face it: many companies publish materiality maps that say absolutely nothing.
If you want to do it right, here’s what must be included to make your analysis meaningful and bulletproof.
Saying “we talked to stakeholders” isn’t enough.
Who did you talk to? How? What did they say? That all needs to be clear and documented.
And don’t stick to the usual suspects.
Include voices that often go unheard: local communities, small and midsize enterprises, trade unions, relevant NGOs.
Double materiality maps often look like colorful dartboards. But if you can’t explain why those topics are ranked where they are, they’re pointless.
Define your criteria clearly: potential impact, urgency, regulatory pressure, geographic relevance, whatever fits your context, but make it consistent.
Yes, it helps to show it in a matrix: X-axis = impact on business, Y-axis = impact on the environment and society.
Your materiality map can’t live in a vacuum.
If something is material, it should be reflected in your goals, KPIs, or policies.
Say climate change is a top issue? Then show how it’s influencing your decisions—supplier choices, product design, investment priorities.
Getting this right isn’t just about ticking boxes. It’s a real lever for gaining ground in a market that’s only getting tougher.
Double materiality gives you a clear picture of where to act.
Facing serious climate risks like decarbonization? Adapt your operations.
Hurting biodiversity? Change your sourcing or logistics.
Talk less, act more. That’s what separates leaders from the rest.
With real data, you can show your commitment without the greenwashing.
That’s what opens doors, whether it’s big contracts, sustainable financing, or ESG rankings.
Those who merely “tick boxes” are being left behind.
When your ESG data is clean and connected, you save time.
Because you’re not starting from scratch every time a new rule comes along.
Everything you build for CSRD can feed into SBTi, Taxonomy, EINF, ISO, and more.
One structure, multiple uses. That’s the kind of efficiency that pays off now.
Ready to unlock efficiency? Schedule a demo.
When we cross financial data with ESG indicators, we stop flying blind.
Double materiality helps us see which decisions have real impact and where the critical points are.
It’s not just about putting out fires.
This approach helps you foresee risks before they explode,
and spot opportunities others haven’t seen yet.
A key supplier with poor environmental sustainability practices?
A regulatory change that might affect your operations?
It all becomes clearer if your system is well set up.
More and more market players are demanding clear and comparable ESG data.
If you don’t have it, you simply lose relevance.
Applying double materiality well shows that you know what you’re doing and you’re not improvising.
If you don’t know how you’re impacting or how you’re being impacted,
you’re already behind your competition.
And when entering new markets or tenders, others will have the advantage
simply for having their data ready.
CSRD and other regulations are no longer optional.
Ignoring them exposes you to fines and reputation crises you could have avoided with organized, accessible information.
Working without visibility is a waste of time, money, and resources.
Measuring poorly, or not at all, multiplies your effort and reduces the impact of any sustainability strategy.
Is it worth continuing this way?
Or better yet: can you afford to?
No more guesswork: schedule a demo.
After seeing how companies of all kinds are approaching this, it’s clear:
those who measure well, decide better.
The most common mistake: treating sustainability like an annual report.
Instead of what it really is: a strategic lever.
First, organize your ESG information.
If the data isn’t clear or connected, you won’t get far.
Then, align key teams.
Compliance, sustainability, legal, and finance must row in the same direction.
And above all, don’t start from scratch every year.
Automating and centralizing data through process automation isn’t optional, it’s pure efficiency.
CSRD compliance isn’t just a box to check, it’s a chance to shift from reaction mode to strategic foresight.
How you approach this regulation today will define your ability to compete tomorrow.
Every new ESG regulation, whether it’s ESRS, the EU Taxonomy or future climate disclosure mandates, follows a similar logic: traceability, transparency and long-term thinking.
If you're already applying double materiality, you're not just complying, you’re building a system that adapts and scales with minimal friction.
Why wait to be forced?
The goal is no longer just to comply. The goal is to be ready. And with double materiality, you're already ahead.
Let’s be honest, most ESG reporting failures aren’t due to missing data.
They happen because teams aren’t aligned.
Finance thinks it’s not their job.
Legal reacts too late.
Sustainability feels alone.
Management sees it as “just another report.”
Time to flip the script.
Don’t ask for more work, show how this makes their work easier, smarter, and more strategic.
If you treat CSRD and double materiality like admin overhead, that’s all you’ll get out of it.
But if you treat it like a business intelligence system, you’ll uncover insights that fuel innovation and differentiation.
Double materiality isn’t just a thermometer, it’s your GPS.
It tells you where you are, where the risks lie, and where the smart paths forward begin.
Creating a report isn’t enough. What matters is your ability to defend it with clarity, traceability, and logic.
CSRD demands that your double materiality assessment be solid, structured, and verifiable. Without that, your report becomes a liability instead of a strategic asset.
Here’s what to check before you hit “publish”:
Are your data sources properly documented?
Don’t just say “we consulted stakeholders” or “evaluated impacts.” You need to show where the data came from, how recent it is, and how it was processed.
Are your prioritization criteria clearly defined and justified?
A colorful materiality matrix means nothing without an explanation.
You should state, in concrete terms, why specific topics were placed where they are, based on potential financial impact, urgency, geographic reach, stakeholder relevance, or regulatory pressure.
Do you have evidence of stakeholder engagement?
It’s not about ticking a box. You must show how stakeholders were selected, what input they provided, and how that input shaped your priorities, especially when it comes from non-obvious groups like small suppliers or local communities.
Does your strategy reflect the material topics identified?
If climate risk is “critical” in your matrix, but there’s no mention of it in your action plans or budget allocations, you have a credibility gap.
Conducting an internal audit isn’t extra work, it’s risk prevention.
Better to find the weak spots yourself than to have a regulator, client, or investor find them for you.
Most of your environmental and social footprint doesn’t come from your HQ or your operations. It comes from your supply chain.
And the CSRD makes this crystal clear: you are expected to report beyond your direct scope.
Double materiality means you need to ask:
How do our suppliers impact people, ecosystems, and regulatory risks?
And how do their practices feed back into our own business risks?
Examples:
The challenge is real: most suppliers don’t have the systems or knowledge to report ESG data reliably.
But the solution isn’t more pressure, it’s smarter collaboration.
If you can’t see what’s happening in your value chain, you can’t manage it. And if you report on assumptions, you risk audits, fines, and broken trust.
What the CSRD truly changes is not just reporting, it’s how companies think.
With double materiality, sustainability is no longer external. It becomes part of how the entire business is run.
No more ESG-as-an-afterthought. No more “reporting season panic.”
If a topic is material, it belongs at the center of decision-making.
This means:
Real transformation starts when compliance becomes culture.
When ESG becomes everyone’s job, not just something “the sustainability person” deals with once a year.
And that’s what makes your company resilient, credible, and ready for what’s next.
Managing double materiality with spreadsheets or fragmented tools simply doesn’t scale. When dozens of indicators, multiple departments and financial-ESG cross-referencing are involved, Excel becomes a bottleneck, not a solution.
A proper tech platform allows you to structure ESG data, ensure traceability, and collaborate seamlessly. You gain not only clarity, but also speed and trust in your reporting process.
Human error is one of the biggest risks in sustainability reporting: duplicated numbers, outdated files, or inconsistent formats. With automation, you can integrate data sources, update indicators in real time, and guarantee consistency across all reports.
Automation isn’t just about efficiency, it’s about protecting yourself from regulatory risk and audit surprises.
A well-designed ESG platform isn’t just a reporting tool, it’s a decision-making enabler. When ESG indicators are tied to procurement, logistics, operations or finance, you can adjust actions based on real-time insight.
Double materiality becomes part of how you run your business every day, not just once a year.
Learn how we’re different, schedule a demo.
Many reports are filled with nice-sounding but useless metrics. The real value lies in selecting indicators that reflect your true impact and risk profile. You don’t need to report everything, just what’s material.
Choose KPIs that guide decisions, not just impress readers. If an indicator doesn’t inform action, it’s just noise.
It’s not enough to define good indicators, they must remain relevant. Set clear responsibilities, update frequencies and communication processes.
Sustainability evolves, and your indicators must evolve too. Keep them current, verifiable, and ready for external scrutiny. That’s how you build confidence and consistency over time.
ESG indicators shouldn’t sit in a report and collect dust. They should feed into real decisions: replacing suppliers, rethinking logistics, redesigning products.
When ESG data is embedded in daily operations, it creates value, not just compliance.
Too often, boards treat ESG as secondary. That’s a mistake. Double materiality directly influences strategy, risk and reputation.
It’s not about ticking boxes or polishing reports, it’s about long-term business continuity and positioning.
Ignoring it is not a neutral stance, it’s a liability.
To fulfill their governance role, board members should ask tough questions:
Double materiality is not about reputation management anymore. It’s about protecting stakeholders, anticipating regulatory exposure, and making better capital decisions.
For any board, understanding and overseeing ESG data through sustainable governance is no longer optional, it’s a core part of responsible governance.
We’re not auditors or consultants.
We’re a solution for companies that want to stop improvising in their sustainability management.
We gather all your ESG information and distribute it across whatever use cases you need:
CSRD, ISOs, Taxonomy, SBTi, EINF, or whatever comes next.
Forget about disconnected tools and impossible Excel files.
With Dcycle, you manage the full cycle: data collection, analysis, reporting, and simulations.
Your data is centralized, secure, and ready to use
for any current or future regulation.
We pull data from wherever it is: ERPs, spreadsheets, suppliers…
And we turn it into useful, actionable information.
You can compare scenarios, spot improvements, and report without errors.
All from one place, with no unnecessary chaos.
We know regulations change.
That’s why our solution is built to adapt to what’s coming.
Today it’s CSRD, tomorrow it could be something else.
But if your data is organized, it’s just a matter of selecting and reporting.
Let us show you what we can do, schedule a demo.
It’s an approach that requires us to look in two directions:
how ESG topics affect our business, and how we impact the environment and society.
CSRD asks us to report on both, with clear and objective data.
Not all… for now.
But if you’re within the scope of CSRD (or work with someone who is),
you’ll have to apply for it sooner than you think.
And if you’re already reporting, it’s best to do it right from the start.
First, identify key ESG topics from both perspectives.
Then, collect and structure the relevant data.
And finally, integrate it into your reports in a coherent and actionable way.
It’s not just another box to tick, it’s a mindset shift.
No. It goes much further.
It forces you to make strategic decisions based on real data.
The report is just the visible part.
What matters is everything behind it that makes the report meaningful.
Dcycle is not a consultancy or audit firm.
We are a solution that centralizes and distributes all your ESG information across the different use cases you need:
CSRD, ISOs, SBTi, Taxonomy…
We collect the data, structure it, and help you turn it into decisions, reports, and competitive advantages.
Without the mess.
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Analisi del calcolo dell'impronta di carbonio tutte le emissioni generate durante il ciclo di vita di un prodotto, compresi l'estrazione, la produzione, il trasporto, l'uso e lo smaltimento delle materie prime.
Le metodologie più riconosciute sono:
Strumenti digitali come Dcycle semplifica il processo, fornendo informazioni accurate e fruibili.
Alcune strategie richiedono investimento iniziale, ma i benefici a lungo termine superano i costi.
Investire nella riduzione delle emissioni di carbonio non è solo un'azione ambientale, è un strategia aziendale intelligente.
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