Strategic Focus: Understanding Approaches To Materiality
Access this research
Access all Corporate Sustainability Leaders content with a strategic subscription or buy this single report
Need help or have a question about this report? Contact us for assistance
Executive Summary
With an unprecedented wave of recent and impending reporting regulations, corporates must understand the reporting landscape and the different approaches to materiality. Although there are two distinct definitions of materiality, executives should be prepared to embed both impact and financial materiality into their ESG and sustainability disclosures. Doing so will allow an organization to communicate a comprehensive picture of its sustainability impact as well as its approach to managing ESG and sustainability risk. This report provides an overview of the current and forthcoming developments relating to materiality assessments and the impact these will have on firms’ reporting processes.Firms must contend with two coexisting pillars of materiality
Widespread adoption of double materiality brings new challenges for firms
Firms will align materiality assessments with their ESG ambitions
Figure 2. Double materiality is gaining traction amongst corporates
Figure 3. Comparison of impact, financial and double materiality assessments
About the Authors
Luke Gowland
Senior Analyst
Luke is a Senior Analyst at Verdantix, specializing in ESG and sustainability reporting software and financial ESG. He advises both technology buyers and software vendor and s...
View Profile
Kim Knickle
Research Director
Kim Knickle is a Research Director at Verdantix, bringing more than two decades of analyst experience to the evolving world of sustainability. Her current research spans ESG a...
View ProfileOther related content
On October 20, 2025, a new carbon accounting coalition, Carbon Measures, hit the market. Supported by prominent organizations across industry and finance – including BlackRock, BAS...
11 November, 2025
On October 13, the Royal Swedish Academy of Sciences recognized the work of Joel Mokyr, Philippe Aghion and Peter Howitt “for having explained innovation-driven economic growth” by...
10 November, 2025
As sustainability regulations evolve unevenly across regions - with the EU refining the CSRD, California rolling out new climate disclosure laws in 2026 and global adoption of ISSB...
Upcoming / 10 December, 2025
As the initial hype around enterprise AI gives way to practical realities, organizations are adopting a more measured and value-driven approach to AI investments. But for those tas...
Upcoming / 03 December, 2025
As organizations face increasing pressure to deliver on decarbonization targets while managing cost and risk, understanding the tools and market dynamics behind renewable energy so...
Upcoming / 27 November, 2025
The past year has been turbulent for many sustainability leaders. Continuous shifts in regulations and global sustainability policy – coupled with economic and trade uncertainty – ...
28 October, 2025