Materiality + Double Materiality

Section 1: Why Materiality Is the Foundation of CSRD

• Understand why the Double Materiality Assessment is the non-negotiable starting point for every CSRD report.

Section 2: Single vs. Double Materiality: The Core Distinction

• Compare financial materiality and impact materiality, and learn why CSRD requires companies to apply both lenses at once.

Section 3: What IROs Are and Why They Are the Building Block of Everything

• Break down the four types of Impacts, Risks, and Opportunities and learn how each is used to assess whether a topic is material.

Section 4: The ESRS Topic Structure: What Can Be Material

• Map the ten topical ESRS standards and identify which sustainability areas may require disclosure based on your IRO assessment.

Section 5: How the Assessment Is Structured: The EFRAG IG 1 Process

• Walk through the seven-step EFRAG IG 1 methodology and learn what each stage requires in practice.

Section 6: Stakeholder Engagement: What Actually Qualifies

• Distinguish between affected stakeholders and information users, and identify what constitutes genuine engagement under ESRS 1.

Section 7: Scoring Materiality: The Mechanics

• Apply the scoring criteria for impact materiality and financial materiality, and understand how thresholds are set and justified.

Section 8: What the Omnibus Simplification Changes

• Review the 2025 Sustainability Omnibus proposals and understand what changes for the DMA process and what stays the same.

Section 9: Lessons from Wave 1: What Companies Got Wrong

• Analyze the five most common DMA failures in early CSRD reporting and learn what a well-executed assessment looks like in contrast.

Section 10: Knowledge Check

• Test your understanding through scenario-based questions and consolidate your learning with a closing summary of the course's key principles and takeaways.

At the end of this course, you will be able to:

• Distinguish between financial materiality and impact materiality, and explain why CSRD requires both.
• Identify the four types of IROs (Impacts, Risks, and Opportunities) and describe how each is assessed for materiality.
• Apply the EFRAG IG 1 process steps to plan and structure a Double Materiality Assessment.
• Evaluate the quality of stakeholder engagement in a DMA and identify gaps that could create assurance risk.
• Recognize common DMA failures from Wave 1 CSRD reporting and apply corrective approaches.