Double materiality  

A concept in sustainability and ESG (environmental, social and governance) reporting that encompasses two dimensions of materiality: impact materiality, which considers how an organisation’s activities affect the environment or society, and financial materiality, which evaluates how environmental or social risks can affect the organisation’s financial performance. A sustainability issue or risk is considered to have double materiality if it has significance from either or both perspectives. The concept of double materiality is central to the Corporate Sustainability Reporting Directive (CSRD).