Corporate Sustainability Reporting Directive (CSRD) requires companies to provide detailed sustainability reporting. A key component is the Double Materiality Assessment (DMA), which helps companies identify relevant ESG topics and assess their impact. But how can companies approach this complex process in a structured and efficient way? This blog post explores the practical implementation of DMA, the specific challenges involved and how the osapiens HUB for CSRD simplifies the process.

How to Perform a Materiality Analysis in Four Steps with osapiens HUB

1. Identifying IROs

The first step in Double Materiality Assessment—following the preparation phase (CSRD Decoded)—is identifying Impacts, Risks, and Opportunities (IROs). Companies must define and categorize their IROs based on the European Sustainability Reporting Standards (ESRS) (Guide to ESRS and IROs). This requires a structured review of each standard to pinpoint relevant topics. Since defining IROs can be complex, the osapiens HUB for CSRD offers an integrated IRO library with over 300 pre-built templates, making it easier for companies to map out key risks, impacts, and opportunities.

2. Assessing Materiality

After identifying the IROs, the next step is evaluating their materiality. Companies must determine which IROs are material and require reporting. This involves a combination of qualitative and quantitative assessment methods. The osapiens HUB for CSRD streamlines this process with automated scoring, leveraging benchmarks and standardized evaluation criteria. This helps companies make data-driven decisions about which ESG topics to include in their reports.

3. Creating the Materiality Matrix

Given the vast amount of ESG data companies must process under CSRD, a clear structure is essential. The osapiens HUB for CSRD helps visualize key insights through a Materiality Matrix, making it easier to systematically prioritize topics. Interactive dashboards allow companies to adjust priorities as needed, while the software automatically categorizes topics as material or non-material, ensuring that only the most relevant IROs make it into the final report.

4. Integrating Findings into Reporting

The final step in the Double Materiality Assessment is incorporating the identified material IROs into the reporting framework. The osapiens HUB for CSRD automates this process, ensuring that only relevant topics are included. It also generates a structured reporting template, clearly distinguishing between mandatory and optional disclosures.

From Materiality Analysis to Reporting

Once the materiality assessment is complete, the reporting process begins. Insights from the Double Materiality Assessment (DMA) lay the groundwork for sustainability reporting in compliance with regulatory requirements. While the DMA identifies which topics are material, the reporting phase focuses on structuring and documenting the collected data into a comprehensive sustainability report.

As a foundational step, the DMA helps determine key ESG topics, while the reporting phase ensures that all relevant data is properly compiled and meets compliance standards. The osapiens HUB for CSRD simplifies this process with structured data management and automated reporting tools, making sustainability disclosures more seamless and efficient.

Challenges in Practice – and How Digital Solutions Help

Implementing a Double Materiality Assessment comes with operational challenges:

• Data availability and quality: Companies often need to consolidate ESG data from multiple sources. A digital platform automates data integration, ensuring consistency and validation.
• Stakeholder integration: Balancing diverse interests can be complex without a structured approach. A digital stakeholder management system streamlines engagement and documentation.
• Prioritizing ESG topics: Materiality assessments can be subjective. Automated scoring models and benchmarking tools enable a more objective and data-driven evaluation.

Efficiently Implementing DMA with Digital Solutions

Successfully conducting a Double Materiality Assessment requires clear structures, targeted stakeholder engagement, and efficient data processing. The osapiens HUB for CSRD helps companies streamline this process, ensuring efficiency, transparency, and compliance. By leveraging automation, data validation, and integrated analytics, the DMA becomes not only simpler but also more precise—laying the foundation for a strong and effective sustainability strategy.