The double materiality concept has to do with the ESG-related information a company reports. Particularly, it involves expanding the scope of information that is considered ‘material’ or important.
With traditional materiality reporting, information is only considered material if it is related to factors impacting a company’s financial performance. When using double-materiality reporting, information relating to how a company impacts the world is also considered material.
Basically, double-materiality reporting involves reporting on ESG-related matters that affect a company’s well-being and reporting on how the company’s actions affect people and the environment.