Double Materiality
Assessment (DMA)
Double materiality remains the core assessment method for companies that are in scope under CSRD, and it is increasingly used to structure voluntary sustainability reporting as well. Under ESRS, an undertaking must assess both impact materiality and financial materiality to determine which sustainability matters are reportable. For maritime operators, that means evaluating vessel emissions, biodiversity, labour conditions, safety and value-chain risks through both lenses.
What is Double Materiality?
A double materiality assessment determines whether a sustainability topic is material from an impact perspective, a financial perspective, or both. It remains mandatory for undertakings that are in scope under CSRD and report under ESRS. It is also increasingly used voluntarily, including in VSME-based reporting and in supplier or financing questionnaires where smaller companies want a structured sustainability narrative.
Financial materiality assesses sustainability-related risks and opportunities that may affect the company's financial position, performance, and cash flows over short, medium, and long term. A topic is material if it is material from either perspective — the "double" lens means both dimensions must be evaluated but only one needs to trigger materiality.
EFRAG (European Financial Reporting Advisory Group) has published detailed implementation guidance (IG 1) providing step-by-step methodology for conducting DMA. For maritime companies, the assessment must cover vessel operations, port activities, shore-side operations, and the full value chain including shipyards, bunker suppliers, cargo owners, and end-of-life ship recycling.
Two Dimensions of Materiality
Impact Materiality
"Inside-Out"Financial Materiality
"Outside-In"A topic found material from either dimension must be reported. Companies cannot use financial materiality alone to exclude topics with significant impact on people or the environment.
The DMA Process
A rigorous Double Materiality Assessment follows a structured four-step process aligned with EFRAG Implementation Guidance, ensuring comprehensive coverage and audit-ready documentation.
Context & Stakeholder Mapping
Understanding the company’s activities, business relationships, and value chain. Identifying affected stakeholders (seafarers, port communities, investors, regulators) and their concerns. Mapping sustainability context specific to maritime operations.
Impact Assessment
Systematic evaluation of actual and potential impacts across all ESRS topics. For maritime: vessel GHG emissions, ocean pollution, ballast water biodiversity, seafarer health & safety, port air quality, ship recycling practices. Severity assessed by scale, scope, and irremediability.
Financial Risk & Opportunity Assessment
Evaluation of how sustainability topics create financial risks (transition risks, physical risks, liability risks) and opportunities (green finance, efficiency gains, market positioning) over short (<1yr), medium (1–5yr), and long term (>5yr) horizons.
Materiality Determination & Documentation
Application of thresholds to determine material topics. Documentation of methodology, data sources, stakeholder input, and rationale for inclusion/exclusion. Results feed directly into ESRS reporting scope and assurance preparation.
Our DMA Solutions
We guide maritime companies through every stage of the Double Materiality Assessment, from stakeholder engagement and impact analysis to documentation and ESRS reporting scope definition.
Full Double Materiality Assessment
End-to-end DMA process following EFRAG IG 1 methodology, covering all ESRS sustainability topics with maritime-specific considerations and stakeholder engagement.
- ESRS topic long-list screening
- Stakeholder identification & engagement
- Impact & financial materiality scoring
- Materiality matrix & documentation
Stakeholder Engagement Program
Structured stakeholder engagement covering investors, lenders, charterers, seafarers, port authorities, regulators, and civil society to inform the materiality assessment with diverse perspectives.
- Stakeholder mapping & prioritization
- Survey & interview design
- Engagement execution & facilitation
- Results analysis & integration
Maritime Impact Assessment
Specialized assessment of maritime-specific sustainability impacts including vessel emissions, marine biodiversity, ocean pollution, seafarer welfare, and ship recycling across the full vessel lifecycle.
- Fleet environmental impact analysis
- Marine biodiversity & ecosystem assessment
- Seafarer welfare & labor impact review
- Ship lifecycle impact evaluation
Financial Risk & Opportunity Analysis
Detailed assessment of sustainability-related financial risks and opportunities across climate, environmental, social, and governance dimensions relevant to maritime business models.
- Climate transition risk analysis
- Physical risk & adaptation assessment
- Regulatory risk mapping (EU ETS, CSRD, etc.)
- Green finance opportunity identification
Materiality Documentation & Governance
Comprehensive documentation of the DMA process, methodology, and outcomes for assurance readiness, board approval, and regulatory compliance.
- Methodology documentation
- Board presentation & approval package
- Assurance-ready evidence files
- Annual update & refresh process
ESRS Reporting Scope Definition
Translation of DMA results into a clear ESRS reporting scope, identifying required disclosures, datapoints, and phase-in provisions applicable to your company.
- Material topic to ESRS standard mapping
- Required disclosure identification
- Phase-in provision assessment
- Data gap analysis & collection planning
Frequently Asked Questions
Common questions about our Double Materiality services and compliance requirements.
A double materiality assessment (DMA) evaluates sustainability matters from two perspectives: impact materiality and financial materiality. It remains a required step for companies that are in scope under CSRD. EFRAG IG 1 is helpful implementation support, but it is non-authoritative guidance and should be used alongside the ESRS and the applicable legal framework.
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Learn moreStart Your Double Materiality Assessment
Double materiality assessment is the mandatory foundation for CSRD compliance. Get expert guidance on conducting a rigorous, EFRAG-aligned DMA tailored to your maritime operations and value chain.