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D for Double materiality – A-Z of impact investing

Read our A-Z definitions to stay up to date with impact investment terminology.

Posted on Apr 14, 2023

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... Double materiality – refers to the sustainability risks the world poses to a company (generally referred to as ESG risks) and the sustainability risks a company poses to the world (generally referred to as impacts).

Both are financially material over the long term as we seek to transition to a more sustainable world. EU Corporate Sustainability Reporting Directive (CSRD) regulation requires companies to report on both aspects of double materiality. 

Read our other definitions
A for Additionality
B for Blended finance 
C for Concessionary 
E for ESG
F for Fiduciary duty 
G for Green bonds
H for Hydrogen
I for Intentionality
J for Just transition
K for Key performance indicators
L for Low carbon 
M for Measurement
N for Natural capital
O for Outcomes 
P for Paris Agreement
Q for Qualitative Impact Assessment Protocol
R for Responsible investment
S for Sustainable development goals
T for Triple bottom line
U for Underserved communities
V for Vocational training
W for Water access
X for Xeriscaping
Y for Youth empowerment 
Z for Zero-waste strategy