Why Stakeholder Communication take on more importance with Double Materiality and CSRD

Written By

Springboard Communications

This insights post is a summary of the blog post published by Springboard Communications. View the full post at: Double Materiality and CSRD: Why Stakeholder Communication Is More Critical Than Ever.

With the introduction of the Corporate Sustainability Reporting Directive (CSRD)in Ireland, there has been a significant shift in how companies must report on environmental, social, and governance (ESG) factors. A key aspect of CSRD is double materiality.  This concept has fundamentally changed how businesses assess and disclose their impact.

In a rapidly evolving regulatory and business landscape, organizations must embrace this broader view of materiality. More importantly, that change will require them to communicate effectively with stakeholders to ensure compliance, trust, and long-term success.

What Is Double Materiality?

In the past, companies focused on financial materiality. That approach looks at how sustainability issues impact a company’s bottom line. Double materiality expands the definition by adding impact materiality, meaning companies not only report about the financial impact, but must also assess how their activities affect people, the environment, and society at large.

Under CSRD, companies must now report on:

• Financial Materiality – How sustainability risks and opportunities affect the company’s financial performance.
• Impact Materiality – How the company’s operations impact the environment and society.

Why Stakeholder Communication Is Essential

With these new reporting requirements, companies operating in Ireland must engage more deeply with their stakeholders—employees, investors, customers, regulators, and communities.  There are several impact including:

1. Stakeholders Influence Your Double Materiality Assessment
2. Transparency Builds Trust and Reputation
3. Employee Engagement and Cultural Alignment
4. Avoiding Legal and Financial Risks
5. Competitive Advantage and Investor Confidence

To get more details about these elements and how to strengthen stakeholder communication on double materiality, view the full post: Double Materiality and CSRD: Why Stakeholder Communication Is More Critical Than Ever.