DMA — Double
Materiality Assessment
The Double Materiality Assessment is the foundational step, mandatory under CSRD, that determines which sustainability topics from the 10 ESRS standards (E1-E5, S1-S4, G1) are relevant to your company — either because your activity impacts the environment or people, or because the topic affects your company financially. CarbonDRI guides you through the process, from initial self-assessment to a documented IRO register, ready for your CSRD or VSME report.
What is the Double Materiality Assessment service? CarbonDRI guides you through the complete ESRS-compliant DMA process: we identify the relevant topics from the 10 thematic standards, run scoring sessions with your team and, where needed, external stakeholders, document the Impact-Risk-Opportunity (IRO) register, and deliver the final materiality matrix — ready to integrate into your CSRD or VSME report.
What is double materiality and why “double”
Double materiality combines two distinct perspectives on each sustainability topic. Impact materiality assesses the effect of the company’s activity on the environment and people — the emissions it generates, the working conditions it creates, the impact on communities. Financial materiality assesses the reverse effect: how the sustainability topic affects the company’s financial position, performance, or cash flows — for example, the risk of an environmental fine or the cost of the energy transition. A topic is considered material if it meets either of the two criteria — it doesn’t need to be material from both perspectives at once. This is the “OR” principle that gives materiality its “double” name.
| ESRS Standard | What it covers |
|---|---|
| E1 — Climate Change | GHG emissions, energy transition, physical climate risks (floods, drought) |
| E2 — Pollution | Emissions to air, water, soil; substances of concern |
| E3 — Water & Marine Resources | Water consumption, water stress, impact on marine ecosystems |
| E4 — Biodiversity & Ecosystems | Impact on habitats, species, ecosystem services |
| E5 — Resource Use & Circular Economy | Material use, waste, recycling, circular design |
| S1 — Own Workforce | Working conditions, equal treatment, health & safety |
| S2 — Workers in the Value Chain | Working conditions at suppliers and subcontractors |
| S3 — Affected Communities | Impact on local communities in areas of operation |
| S4 — Consumers & End-users | Product safety, privacy, equitable access |
| G1 — Business Conduct | Anti-corruption, supplier relations, business ethics, lobbying |
Interactive materiality self-assessment tool
For each of the 10 ESRS topics, estimate a score from 1 (not relevant) to 5 (highly relevant) for impact materiality and financial materiality. Choose a threshold, then calculate — topics that reach the threshold on either axis are flagged as material.
Note: this tool is an indicative self-assessment, not a complete ESRS 1-compliant DMA. An official assessment requires documented stakeholder engagement and a narrative justification for each decision. Request a consultation for the full assessment.
Who is this service for?
Companies under CSRD obligations
Companies that must report under ESRS and need a documented, ESRS 1-compliant DMA as the foundation of their report.
SMEs preparing a VSME report
SMEs that want a simplified materiality assessment to structure their VSME report around the topics that truly matter.
Companies in large groups’ value chains
Companies asked by a large group to flag material topics, as part of the group’s own CSRD reporting.
What’s included in the DMA service
Business context mapping
We analyze your activity, value chain, and sector context to identify the relevant topics to assess.
Stakeholder engagement
We organize consultations with employees, customers, suppliers, and other relevant stakeholders, documented per ESRS 1.
Structured scoring sessions
We facilitate impact and financial materiality scoring sessions for each of the 10 ESRS topics.
Documented IRO register
We document the Impacts, Risks, and Opportunities identified, with a narrative justification for each materiality decision.
Final materiality matrix
We deliver the final visual matrix, ready for direct inclusion in your CSRD or VSME report.
Annual update
We review the assessment every year as your activity, regulatory context, or risks evolve.
How we work — 5-step process
- 01
Context mapping
We understand your activity, value chain, and sector to identify the relevant ESRS topics.
- 02
Stakeholder engagement
We identify and consult relevant internal and external stakeholders, documenting the process per ESRS 1.
- 03
Materiality scoring
We assess each topic on impact and financial materiality, with leadership and stakeholders involved.
- 04
IRO register documentation
We document the identified impacts, risks, and opportunities, with a narrative justification for each decision.
- 05
Final matrix delivery
We deliver the final materiality matrix, ready for your CSRD or VSME report, and plan the annual update.
⚠️ Important: The interactive tool on this page is an indicative self-assessment, useful for a quick first estimate. It does not replace a complete, ESRS 1-compliant Double Materiality Assessment, which requires documented stakeholder engagement and structured narrative justification — steps we carry out together with your team in the full service.
Frequently asked questions about double materiality
What is double materiality and why is it called “double”?
Double materiality combines two perspectives: impact materiality (the effect of the company’s activity on the environment and people) and financial materiality (the effect of sustainability topics on the company’s financial position and performance). It’s called “double” because a topic is considered material if it meets EITHER of the two criteria — it doesn’t need to be material from both perspectives at once.
Who is required to perform a double materiality assessment?
The double materiality assessment is a mandatory step for companies under CSRD (Corporate Sustainability Reporting Directive) obligations, who must report under ESRS. For SMEs reporting voluntarily via VSME, a simplified materiality assessment is recommended, though not required with the same rigor.
How many ESRS topics must be assessed in a DMA?
ESRS defines 10 thematic standards to assess: E1 Climate Change, E2 Pollution, E3 Water & Marine Resources, E4 Biodiversity & Ecosystems, E5 Resource Use & Circular Economy, S1 Own Workforce, S2 Workers in the Value Chain, S3 Affected Communities, S4 Consumers & End-users, G1 Business Conduct. Each is assessed for both impact and financial materiality.
Does the interactive tool on this page replace a full DMA?
No. The tool on this page is an indicative self-assessment exercise, useful for quickly understanding which topics are likely material for your company. A complete, ESRS 1-compliant DMA requires documented engagement with internal and external stakeholders, a structured scoring process, and a narrative justification for each materiality decision — steps we carry out together with your team.
What materiality threshold should I choose?
The ESRS standard does not impose a fixed numeric threshold — each company sets its own threshold, justified and documented, based on context, sector, and risk appetite. Our tool offers a default threshold of 3 out of 5 as an indicative starting point, but the final threshold for official reporting must be set together with leadership and documented in the report.
What do you deliver at the end of a complete double materiality assessment?
We deliver a documented IRO (Impacts, Risks, Opportunities) register, the final materiality matrix, evidence of stakeholder engagement, and a narrative justification for each ESRS topic assessed — ready to be integrated directly into your company’s CSRD or VSME report.
Build a DMA that’s
documented and defensible
Stakeholder engagement, structured scoring, documented IRO register. Free, personalized quote within 48 hours.
See also: VSME Service · CBAM Service · CFP Service