Double Materiality is a concept that has gained significant traction within environmental, social, and governance (ESG) frameworks, particularly for its comprehensive approach to assessing materiality from two distinct perspectives: financial materiality and environmental and social materiality. This dual approach ensures that companies not only consider the financial impacts of their operations on their financial performance but also the impact of their operations on society and the environment, and vice versa.

Double materiality represents a paradigm shift in how companies assess and report on material issues. By considering both the financial impacts of ESG issues and the impacts of their operations on society and the environment, companies can adopt a more sustainable and responsible business model.

This approach not only aligns with the growing emphasis on corporate sustainability but also enhances companies' ability to respond to the evolving expectations of stakeholders and regulators in the ESG landscape.