Skip to main content

Materiality Assessment Process

Four Step Process​

With the Omnibus consultations concluding, we now have clarity on the most efficient process for conducting a CSRD regulatory compliant double materiality process. We set this process out below, together with an optional step that some reporters find helpful. The whole process takes about 8 weeks.

Step 1 - Open source analysis​

Two by Two chart
  • Using our open source framework, Mettle analyses how your company is discussed across media, regulatory, investor and internal sources against ESRS taxonomy
  • Peer group and industry is included for vital context
  • Mettle calculates impact and financial materiality based on EFRAG criteria. This methodology has been validated with Big 4 assurance providers
  • Mettle creates a draft 2x2 of the most relevant IROs for your business

Step 1b - Optional stakeholder input​

Chatbot image
  • Mettle offers a simple AI chatbot tool to collect input from a wider group of stakeholders
  • This replaces traditional stakeholder surveys with a more targeted approach
  • This can run in parallel with the initial analysis or be used after the draft 2x2 to test and refine priorities

Step 2. Workshop​

External Chart
  • Mettle runs a workshop with your nominated team to review the draft matrix
  • Dives into the methodology and source data using Mettle's dashboard
  • Any company-specific context is taken into consideration and the draft 2x2 matrix amended accordingly
  • The CSRD reporting team has full visibility of the data and how the IROs were selected

Step 3. Management input​

People Outline
  • The CSRD reporting team then bring in senior leadership to review, challenge or confirm the IROs.
  • Mettle provides structure and materials for you to run this part internally.

Step 4. Finalisation and output​

IRO example

Once confirmed, Mettle generates the final 2x2 along with:

  • Short narrative for each IRO
  • Explanation of why it's included o List of relevant Disclosure Requirements (DRs) under ESRS or ISSB
  • Structured documentation to support assurance or audit