Pricing
ESRS Methodology

Double Materiality Assessment

Identify which ESG topics are material for your CSRD report across all 10 ESRS topics — required first step for compliance.

10
ESRS Topics
2
Materiality Lenses
AI
Generated Report
1
Company
2
Environment
3
Social
4
Governance
5
Report

Company Profile

Your company profile helps calibrate the assessment to your sector and CSRD reporting obligations.

Environmental Topics

Rate each topic on two dimensions. Impact Materiality: how significantly does your business impact this area? Financial Materiality: how much could this area affect your business financially? (1 = Not relevant, 3 = Material threshold, 5 = Highly material)

E1

Climate Change

GHG emissions, energy use, climate transition risks, physical climate risks, and net-zero alignment.

Impact Materiality
3

Your operations' GHG emissions, energy consumption and contribution to climate change.

1 — Not relevant5 — Highly material
Financial Materiality
3

Carbon pricing, energy costs, stranded assets, physical climate damage risks.

1 — Not relevant5 — Highly material
E2

Pollution

Air, water, and soil pollution from operations and value chain, including hazardous substances.

Impact Materiality
2

Pollutants emitted to air, water or soil; hazardous chemicals used.

1 — Not relevant5 — Highly material
Financial Materiality
2

Remediation costs, regulatory fines, REACH/chemical regulations, reputational damage.

1 — Not relevant5 — Highly material
E3

Water & Marine Resources

Water consumption, water quality, marine resources extraction, and aquatic ecosystem impacts.

Impact Materiality
2

Water withdrawn/consumed, wastewater discharged, impacts on water bodies.

1 — Not relevant5 — Highly material
Financial Materiality
2

Water scarcity risk, water costs, water-related regulations, operational disruption.

1 — Not relevant5 — Highly material
E4

Biodiversity & Ecosystems

Land use change, habitat destruction, species impacts, and ecosystem service dependencies.

Impact Materiality
2

Land footprint, biodiversity-sensitive areas, species at risk from your operations.

1 — Not relevant5 — Highly material
Financial Materiality
2

Ecosystem service dependencies, nature-related regulations (EU Nature Restoration Law).

1 — Not relevant5 — Highly material
E5

Resource Use & Circular Economy

Material consumption, waste generation, product end-of-life, and circular economy practices.

Impact Materiality
2

Virgin materials consumed, waste generated, products entering waste stream.

1 — Not relevant5 — Highly material
Financial Materiality
2

Resource price volatility, waste disposal costs, circular economy opportunities, EPR schemes.

1 — Not relevant5 — Highly material

Social Topics

Rate the materiality of social topics for your business. Consider both your direct impacts and financial exposures.

S1

Own Workforce

Working conditions, health & safety, diversity & inclusion, pay equity, and worker rights.

Impact Materiality
3

Working hours, health & safety record, pay gaps, harassment, discrimination.

1 — Not relevant5 — Highly material
Financial Materiality
3

Talent retention, productivity, absenteeism, labour disputes, employer brand.

1 — Not relevant5 — Highly material
S2

Workers in Value Chain

Labor standards, human rights, and working conditions in your supply chain and downstream value chain.

Impact Materiality
2

Supplier labour conditions, child/forced labour risk, living wage in supply chain.

1 — Not relevant5 — Highly material
Financial Materiality
2

Supply disruptions, due diligence liability (CSDDD), reputational risk from supply chain incidents.

1 — Not relevant5 — Highly material
S3

Affected Communities

Local community impacts, indigenous peoples' rights, access to land, and social license to operate.

Impact Materiality
2

Community health, noise/pollution impacts, displacement, engagement practices.

1 — Not relevant5 — Highly material
Financial Materiality
2

Social license to operate, permitting risks, community opposition, legal challenges.

1 — Not relevant5 — Highly material
S4

Consumers & End-users

Product safety, data privacy, consumer rights, access and affordability, and responsible marketing.

Impact Materiality
2

Product safety incidents, consumer privacy breaches, misleading marketing.

1 — Not relevant5 — Highly material
Financial Materiality
2

Product liability, customer churn, brand damage, regulatory fines (GDPR, consumer law).

1 — Not relevant5 — Highly material

Governance

Rate the materiality of business conduct topics. These apply to all companies regardless of sector.

G1

Business Conduct

Anti-corruption and anti-bribery, lobbying, payment practices, and whistleblower protection.

Impact Materiality
3

Corruption risks, unethical business practices, payment delays to suppliers.

1 — Not relevant5 — Highly material
Financial Materiality
3

Legal penalties, fines, reputational damage from governance failures.

1 — Not relevant5 — Highly material

Analysing your materiality data…

Our AI is generating your sector-specific DMA report

Evaluating impact materiality across 10 ESRS topics
Assessing financial materiality and risk exposure
Generating materiality matrix and classifications
Writing sector-specific narrative analysis
Preparing report for email delivery
Material Topics

Materiality Matrix

Topics plotted by impact materiality (Y) vs financial materiality (X). Topics above the threshold lines are material.

Legend
Doubly Material
Impact Material
Financial Material
Not Material
Threshold at score 3.
Topics with score ≥3 on
either axis are material.

Topic Analysis

Detailed analysis for each ESRS topic, sorted by materiality.

Top Priorities

Next Steps

Your CSRD Reporting Obligations

Ready to build your CSRD report?

Verdaio's platform takes your DMA results and guides you through data collection, ESRS disclosure drafting, and audit-ready reporting.

Pricing