Double materiality dilemma

Which new standard draft embeds the concept of double materiality?

ESRS 1

ESRS 3

ESRS 4

ESRS 2

What is double materiality?

Reporting that focuses on issues other than those related to sustainability

Reporting that includes a company's impact on the outside world

Reporting that focuses solely on a company's impact on the outside world

Reporting that focuses solely on the impact of sustainability issues on a company

Which standard-setter is not considering incorporating double materiality?

South African Accounting Standards Board

International Accounting Standards Board

Global Reporting Initiative

International Sustainability Standards Board

Which of the following organisations is NOT mentioned in the article as having adopted double materiality?

DWS

Fidelity

Coca-Cola

BNP Paribas

Which sector is calling for standard-setters to include double materiality?

Fund management

Accountancy

Retail banking

Insurance

Why might double materiality be difficult to incorporate into standards?

There is not enough interest

Standards take a long time to be revised

It is open to widely varying interpretations

It has very narrow parameters

Why is it not necessarily a problem if a jurisdiction does not incorporate double materiality into its standards?

Double materiality is unlikely to survive as a concept

The issues related to double materiality affect advanced economies only

Another jurisdiction could overlay double materiality

The issues related to double materiality affect developing economies only

Who is the ISSB's current concept of materiality designed for?

Multinational companies

SMEs

Investors

Governments

What is a key problem with the ISSB's current concept of materiality?

The ISSB's standards are not widely used, so will have little impact

The ISSB's interpretation is too confusing

The ISSB's interpretation contradicts other reporting standards

Reporting may take place much later than it would with double materiality reporting

Which alternative offers some of the principles of double materiality?

Global Reporting Initiative standards

US GAAP

Integrated reporting

Statement of Recommended Practice

Double materiality dilemma

Which new standard draft embeds the concept of double materiality?

What is double materiality?

Which standard-setter is not considering incorporating double materiality?

Which of the following organisations is NOT mentioned in the article as having adopted double materiality?

Which sector is calling for standard-setters to include double materiality?

Why might double materiality be difficult to incorporate into standards?

Why is it not necessarily a problem if a jurisdiction does not incorporate double materiality into its standards?

Who is the ISSB's current concept of materiality designed for?

What is a key problem with the ISSB's current concept of materiality?

Which alternative offers some of the principles of double materiality?

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