Double Materiality is an integrative reporting principle that evaluates an organization’s industrial metabolism through the dual lenses of financial materiality and impact materiality.
This framework mandates disclosing not only how external ESG risks affect the organization's financial viability (outside-in), but also how the organization’s operations impact the environment and society (inside-out).
Adhering to this dual perspective is an institutional necessity for bridging the gap between investor demands and regulatory mandates, effectively transforming ESG transparency into a foundational pillar of organizational resilience.