Double materiality is old Lady Europe’s response
Reuters
But that’s not how old Lady Europe sees it. European regulators, which have been ahead of their US counterparts in formulating disclosure requirements on climate change, have come up with an attempt at reconciling the need for investors to have greater information on ESG issues and the question of whether such factors are deemed financially material. The result is “double materiality”.
The concept of double materiality describes how corporate information can be important both for its implications about a firm’s financial value, and about a firm’s impact on the world at large, particularly with regard to climate change and other environmental impacts. The idea of double materiality comes from a recognition that a company’s impact on the world beyond finance can be material, and therefore worth disclosing, for reasons other than the effect on a firm’s bottom line.
https://persefoni.com/newsletter/us-european-climate-reporting