Double materiality

Roles that need it

• ESG Reporting Specialist
• ESG Investment Analyst
• Sustainable Finance Analyst
• External Audit Associate

Skills it belongs to

• Sustainability reporting (CSRD/ESRS, ISSB, GRI)
• Risk judgment and escalation instinct

Related concepts

• CSRD (Corporate Sustainability Reporting Directive)The CSRD is the EU directive, (EU) 2022/2464, that requires large companies to report sustainability information in their management report under the ESRS, based on double materiality, in a digital format and with external assurance. The 2026 Omnibus simplification narrowed its scope to the largest companies.
• ESRS (European Sustainability Reporting Standards)The ESRS are the mandatory sustainability reporting standards under the CSRD, adopted as Delegated Regulation (EU) 2023/2772. The first set has two cross-cutting and ten topical standards on environment, social and governance matters, and the Commission is simplifying them after the Omnibus package.
• Materiality (audit and reporting)Information is material if omitting or misstating it could reasonably influence the decisions of users of the financial statements. Auditors set an overall materiality, often a percentage of profit before tax, revenue or equity, and a lower performance materiality for testing.

Sources

• Directive (EU) 2022/2464 (Corporate Sustainability Reporting Directive), EUR-Lex (external site) accessed 31 Oct 2026
• Commission Delegated Regulation (EU) 2023/2772 (ESRS), EUR-Lex (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.