Why Double Materiality Assessments Matter: Insights from IPC’s New White Paper
by Kelly Scanlon, IPC lead sustainability strategist
The concept of double materiality may seem complex at first glance, but its significance for the electronics manufacturing industry is both tangible and far-reaching. It’s about understanding how sustainability impacts your business and how your business impacts the world and then leveraging that understanding for growth and compliance.
That’s why IPC, in collaboration with global sustainability consultancy, Anthesis Group, has released a white paper titled Why Double Materiality Assessments Matter: Compliance and Competitive Advantage. This guide is for anyone navigating the European Union’s Corporate Sustainability Reporting Directive (CSRD).
At its core, a double materiality assessment (DMA) requires companies to take a dual approach to sustainability. This means evaluating impact materiality (how your organization affects the environment and society) and financial materiality (how sustainability-related issues affect your organization’s financial performance). This dual perspective is at the heart of the CSRD, a landmark regulation that’s reshaping sustainability reporting requirements across the globe.
IPC’s white paper breaks down the DMA process into four key areas:
- Understanding the concept: Why double materiality matters and how to approach it.
- Structured methodologies: A step-by-step guide to conducting a DMA, from defining sustainability priorities to engaging stakeholders and validating data.
- Navigating regulations: Insights into the CSRD and how it aligns with global frameworks like ISSB and GRI.
- Engaging stakeholders: Tips for effective communication with investors, suppliers, and internal teams.
What’s more, the white paper is packed with practical information, like a glossary, FAQs, and real-world case studies. For example, imagine a European semiconductor manufacturer using a DMA to uncover risks in its supply chain, everything from responsibly sourcing raw materials to reducing production waste. Or consider a multinational tech company aligning its sustainability reporting with CSRD and ISSB standards, achieving greater transparency and efficiency across its subsidiaries.
Yes, the CSRD sets a high bar for sustainability reporting. But as Kelly Scanlon, IPC’s lead sustainability strategist and co-author of the white paper, puts it, “DMAs offer organizations value beyond just regulatory compliance. By understanding how sustainability issues affect their business—and vice versa—electronics companies can gain operational efficiencies in a competitive global marketplace.”
Mari Desangles of Anthesis agrees, “Through a double materiality assessment, companies can understand their most significant sustainability-related impacts, risks, and opportunities, then make informed strategic decisions about how to address them.”
Whether you’re grappling with the CSRD for the first time or looking to refine your sustainability strategy, this white paper is an essential resource. It’s about more than ticking a regulatory box, it’s about setting your company up for long-term, sustainable success.
Download Why Double Materiality Assessments Matter: Compliance and Competitive Advantage.