Single vs Double Materiality

Wayne Mayer

30 years: Sustainability and Corporate Social Responsibility Executive

In this video, Wayne breaks down single and double materiality, highlighting how they help companies balance financial performance with societal impact. He explains how double materiality assessments align business strategies with the UN Sustainable Development Goals (SDGs), supporting better risk management, innovation, and sustainable growth.

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Single vs Double Materiality

14 mins 9 secs

Key learning objectives:

Understand the distinctions between single and double materiality
Understand how to conduct a double materiality assessment to align business practices with sustainability goals
Identify how companies can integrate the United Nations Sustainable Development Goals (SDGs) into their materiality assessments

Overview:

Single and double materiality are essential concepts for balancing financial performance with broader societal impact. Single materiality focuses on how ESG issues affect a company's financial outcomes, while double materiality considers the company's impact on society and the environment. Conducting double materiality assessments enables businesses to align their strategies with the United Nations Sustainable Development Goals (SDGs), ensuring they meet stakeholder expectations, mitigate risks, and leverage new opportunities for sustainable growth.

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Summary

What is single materiality and how does it differ from double materiality?

Single materiality focuses on how ESG issues impact a company’s financial performance, making it a tool for identifying risks that could affect profitability. In contrast, double materiality assesses both the financial impact on the company and the company’s broader impact on society and the environment. This dual approach provides a more comprehensive view of a company's sustainability performance, aligning it with stakeholder expectations.

How do companies use double materiality to enhance their sustainability strategies?

Companies like Unilever use double materiality assessments to identify key ESG issues that matter to both their business and their stakeholders. By considering both inside-out and outside-in impacts, these companies can align their sustainability goals with broader societal objectives, such as the UN Sustainable Development Goals. This approach not only mitigates risks but also opens up new opportunities for innovation and value creation.

Why are the UN Sustainable Development Goals (SDGs) important in materiality assessments?

The UN Sustainable Development Goals provide a comprehensive framework for addressing global sustainability challenges. By aligning materiality assessments with the SDGs, businesses can ensure that their operations contribute to broader societal goals while also enhancing their long-term strategic planning and risk management.

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Wayne Mayer

Wayne Mayer, a Strategic Sustainability consultant and CEO of When Everything Matters, advises multinational companies and non-governmental organizations on various Sustainability and ESG issues. He helps companies transform business models into sustainable development partnerships, using Sustainability principles and Corporate Social Responsibility (CSR) practices to drive innovation, growth, and profits. With over 20 years of experience, Wayne has worked as a change agent focused on Environmental, Social, and Governance performance. He helps companies set science-based goals and leverage data and technology to measure, monitor, and communicate ESG risks, impacts, and opportunities.

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