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CSRD and double materiality: what it is and why it matters

Updated on
May 29, 2025

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.

What CSRD Is and Why You Should Pay Attention

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.

The Principle of Double Materiality Explained Without Jargon

1. Financial Materiality vs. Impact Materiality

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.

2. How Both Perspectives Interact in the Sustainability Report

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.

The Direct Impact of Double Materiality on Your Company

1. It Changes How You Collect ESG Data

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.

2. It Requires Collaboration Across Teams

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.

3. It Multiplies Use Cases: From CSRD to Other Regulations

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.

3 Competitive Advantages of Properly Applying Double Materiality

1. It Improves Strategic Decision-Making

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.

2. It Lets You Anticipate Risks (and Opportunities)

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 practices?
A regulatory change that might affect your operations?

It all becomes clearer if your system is well set up.

3. It Strengthens Your Position With Investors, Clients, and Regulators

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.

Not Measuring Means Falling Behind: The Risks of Ignoring Double Materiality

1. Loss of Competitiveness

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.

2. Legal and Reputational Risks

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.

3. Inefficient Sustainability Management

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?

Our Vision as ESG and Reporting Experts

What We’ve Learned Working With Hundreds of Companies

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.

Key Recommendations for Effectively Implementing Double Materiality

First, organize your ESG information. If the data isn’t clear or connected, you won’t get far.

Then, align key teams. Sustainability, legal, and finance must row in the same direction.

And above all, don’t start from scratch every year. Automating and centralizing data isn’t optional, it’s pure efficiency.

Why Dcycle Is the ESG Solution You Need

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.

One Tool for Your Entire ESG Data Cycle

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.

From Data Collection to Reporting, Including Analysis and Simulations

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.

Comply With CSRD, Taxonomy, SBTi, ISOs… and Whatever Comes Next

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.

Frequently Asked Questions (FAQs)

What Is Double Materiality in the Context of CSRD?

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.

Are All Companies Required to Apply Double Materiality?

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.

What Are the Steps to Implement This Approach?

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.

Is Double Materiality Only for the Sustainability Report?

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.

How Can a Tool Like Dcycle Help Me With This Process?

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.

Take control of your ESG data today.
Take control of your ESG data today
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Cristina Alcalá-Zamora
CSRD Specialist | Content Creator

Domande frequenti (FAQ)

Come si può calcolare l'impronta di carbonio di un prodotto?

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:

  • Valutazione del ciclo di vita (LCA)
  • ISO 14067
  • FINO AL 2050

Strumenti digitali come Dcycle semplifica il processo, fornendo informazioni accurate e fruibili.

Quali sono le certificazioni più riconosciute?
  • ISO 14067 — Definisce la misurazione dell'impronta di carbonio per i prodotti.
  • EPD (Dichiarazione ambientale di prodotto) — Impatto ambientale basato sull'LCA.
  • Da culla a culla (C2C) — Valuta la sostenibilità e la circolarità.
  • PIOMBO E BREAM — Certificazioni per edifici sostenibili.
Quali settori hanno la più alta impronta di carbonio?
  • Costruzione — Elevate emissioni da cemento e acciaio.
  • Tessile — Intenso utilizzo di acqua ed emissioni prodotte dalla produzione di fibre.
  • Industria alimentare — Impatto su larga scala sull'agricoltura e sui trasporti.
  • Trasporto — Dipendenza dai combustibili fossili nei veicoli e nell'aviazione.
In che modo le aziende possono ridurre l'impronta di carbonio dei prodotti?
  • Usare materiali riciclati o a basse emissioni.
  • Ottimizza processi di produzione per ridurre il consumo di energia.
  • Passa a fonti energetiche rinnovabili.
  • Migliorare trasporto e logistica per ridurre le emissioni.
La riduzione del carbonio è costosa?

Alcune strategie richiedono investimento iniziale, ma i benefici a lungo termine superano i costi.

  • Efficienza energetica riduce le spese operative.
  • Riutilizzo e riciclo dei materiali riduce i costi di approvvigionamento.
  • Certificazioni di sostenibilità aprire nuove opportunità di business.

Investire nella riduzione delle emissioni di carbonio non è solo un'azione ambientale, è un strategia aziendale intelligente.