What is a Double Materiality Assessment
Sustainability and ESG encompass a wide range of environmental, social, and governance issues that can vary significantly across industries. A Double Materiality Assessment (DMA) is a structured process to identify the ESG topics most relevant to your organisation. It helps you understand both the impact your business has on the world and how ESG factors influence your financial performance, providing a comprehensive foundation for decision-making and strategy.
&BLOOM guides organisations through a rigorous DMA process, focusing on the core elements of impact, risks, and opportunities to determine the materiality of ESG factors.
Why this matters
Organisations face increasing scrutiny from regulators, investors, and stakeholders. Without clarity on which ESG issues are most material, efforts can be fragmented, misaligned, or ineffective.
A well-executed DMA enables organisations to:
Prioritise ESG issues that are most significant to the business and stakeholders.
Align strategy with global sustainability standards such as the International Sustainability Standards Board / International Financial Reporting Standards (ISSB/IFRS) and EU Corporate Sustainability Reporting Directive (CSRD).
Understand the financial materiality of ESG factors, identifying risks and opportunities that affect long-term resilience and stakeholder value.
Provide credible evidence for ESG reporting, investor engagement, and strategic decision-making.
What you get
✓ A comprehensive Double Materiality Assessment report that identifies and prioritises your organisation’s most significant ESG impacts, risks, and opportunities.
✓ Workshops with your team to validate findings and ensure internal alignment and ownership.
✓ Alignment with global ESG standards and frameworks to support reporting, compliance, and investor communication.
✓ Recommendations and actionable insights to guide strategy, governance, and decision-making across the organisation.
Who is this for
Organisations seeking a structured approach to identify and prioritise ESG topics.
Businesses building or refining an ESG strategy.
Companies preparing for regulatory reporting, investor engagement, or sustainability disclosure requirements.
Boards and executives who require clear, data-driven insight into ESG risks, impacts, and opportunities.
Where it fits in our framework
Prerequisities
A Double Materiality Assessment (DMA) is the foundational first step in an organisation’s ESG journey. It does not require prior ESG data or strategy, as it establishes the baseline for understanding material impacts, risks, and opportunities.
Organisations will obtain the most value from a DMA if their team has a basic understanding of sustainability and ESG principles, including why identifying material ESG topics is crucial. Introductory ESG training or upskilling can be helpful to set the scene, ensuring participants understand the context, objectives, and importance of the assessment. Completing a DMA provides the essential insights needed to inform ESG policy, reporting, training, and strategic decision-making.
What the process looks like
A Double Materiality Assessment can be conducted using either a top-down or bottom-up approach, or a combination of both, depending on the organisation’s context and objectives. In a top-down approach, material ESG topics are identified through executive and board-level input, focusing on strategic priorities, regulatory requirements, and investor expectations. In a bottom-up approach, insights are gathered from teams across operations, supply chains, and stakeholders to ensure all relevant impacts and risks are captured.
The process typically involves collecting and analysing data, evaluating ESG impacts and financial materiality, engaging internal teams and stakeholders to validate findings, and translating the results into actionable insights that inform ESG strategy, reporting, and governance. This flexible approach ensures that the assessment is both comprehensive and aligned with organisational priorities.
Frequently Asked Questions
How long does each type of DMA typically take?
Top-down assessments can be completed relatively quickly, often within 1-2 weeks. Bottom-up assessments usually take 6–10 weeks, depending on organisational size and complexity.
What is the difference between single and double materiality?
Single materiality considers only how ESG factors affect the organisation’s financial performance. Double materiality also examines the organisation’s impacts on the environment, society, and stakeholders, providing a more holistic view for strategy and reporting.
Can we conduct a DMA if we have limited ESG data?
Yes. The DMA can begin using qualitative insights and existing information. &BLOOM can support you in building a more robust data foundation for future assessments and reporting.
Do teams need prior ESG experience to participate?
No. While introductory ESG training is recommended to provide context and explain why DMA is crucial, the assessment itself is designed to guide organisations in identifying material ESG topics from the ground up.