Double Materiality Assessment (DMA) — ESRS & CSRD Aligned

A Double Materiality Assessment evaluates materiality from two perspectives simultaneously — impact materiality, which examines the organisation's actual and potential impacts on people and the environment across its value chain, and financial materiality, which examines how sustainability- related risks and opportunities affect the organisation's financial performance and position. Together these two lenses provide a complete picture of what is material — and why.

The DMA is the cornerstone of reporting under the European Sustainability Reporting Standards — ESRS — and the Corporate Sustainability Reporting Directive — CSRD.

While CSRD is a European regulation, its reach extends to Indian subsidiaries of European companies, Indian companies with European operations or listings, and Indian organisations in the supply chains of CSRD-reporting entities — making DMA increasingly relevant for Indian businesses engaged with European investors, customers, and partners.

EGSS conducts Double Materiality Assessments following a rigorous, stakeholder-led methodology — combining impact assessment, financial risk analysis, and structured stakeholder engagement to produce a DMA that meets the requirements of ESRS and the expectations of institutional investors, lenders, and reporting frameworks.