Double materiality Implementation Guidance

The objective of this non-authoritative Guidance is to support the implementation activities of preparers and others using or analysing ESRS reports, with regard to the double materiality assessment (referred to as “materiality assessment” or “assessment” or “MA” in this document). Hence, this Guidance does not introduce new provisions to the ESRS, as these can only result from future standard setting activities (e.g., future possible amendments to draft ESRS) conducted in accordance with the EFRAG due process. When content of this Guidance is seen to contradict the requirements in the ESRS, those requirements prevail.

Due to the principles-based nature of the ESRS requirements, also specifically on this topic, there is no single solution for all undertakings in terms of designing processes and adopting methodologies. Hence, this Guidance provides tools and mechanisms for undertakings to comply with the ESRS while taking full account of their specific facts and circumstances (including, their business model, strategy, legal structure, complexity or governance). Therefore, the illustrations of how to apply the criteria in ESRS 1 General requirements and ESRS 2 General disclosures in this Guidance including examples or visual representations, are not the only possible approaches to implement the ESRS requirements.