EventEN0326

Double Materiality Assessment:
Less complexity due to simplified ESRS

With the adoption of the simplified European Sustainability Reporting Standards (ESRS) (formal publication expected at the end of March) it is worth taking a closer look at how these changes affect the Double Materiality Assessment (DMA).

The DMA is the fundament of a materiality assessment in line with European sustainability standards. Regardless of whether you are conducting a DMA for the first time or have to review your existing DMA, it is worth reviewing your analysis in accordance with the Simplified ESRS and adjusting it if necessary.

The key changes

The simplified ESRS standards provide several clarifications and pragmatic simplifications for companies.

- Top-down approach: Companies are allowed to identify material topics starting from their business model, strategy, geographies, or value chain. Combined approaches are also permitted.
- Focus on relevant hotspots: It is no longer necessary to analyze every potential Impact, Risk, or Opportunity (IRO) across the entire value chain. The assessment can focus on areas with potentially material effects.
- More pragmatic data requirements: Companies may rely on reasonable and supportable information from commonly available internal and external sources. For many topics, a qualitative analysis is sufficient.
- More flexible stakeholder engagement: A separate survey process specifically for materiality analysis is no longer required. Input from internal and external stakeholders can be incorporated, although external stakeholders do not necessarily have to be involved.
- DMA does not have to be performed annually: An update is only necessary if there are significant changes – for example, in the business model, activities, or value chain.

Why a CSRD aligned Double Materiality Assessment is value adding for Swiss companies

Swiss companies that are not directly in scope of the Corporate Sustainability Reporting Directive (CSRD) can still benefit from performing a DMA in line with the ESRS.

- Indirect impact: International clients, banks, and (institutional) investors increasingly demand ESG transparency across the entire value chain — often aligned with CSRD requirements.
- Regulatory developments: Swiss sustainability regulations are likely to become more closely aligned with the European CSRD. An update from the Swiss Federal Council is expected in spring.
- Strategic added value: A robust DMA provides clarity on material topics, strengthens competitiveness, and sharpens the focus of sustainability reporting.

A professional DMA is not just a compliance exercise — it is a powerful strategic management and communication tool.

Let us review your Double Materiality Assessment

Would you like to review or update your existing DMA in accordance with the simplified ESRS? Or are you planning to conduct a DMA for the first time?

We would be pleased to discuss your needs and show you what a pragmatic and efficient approach can look like.

Please contact us for a non-binding consultation.

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