CSRD: conducting the Double Materiality Assessment

Nowadays, it's almost impossible to open a newspaper without encountering an article on 'sustainability'. Whether it's in the context of the financial services industry, the broader economy, or society as a whole, sustainability has become a critical issue. In recent years, it has gained significant traction and is now recognised as a necessity rather than just a trend.

Over the past decade, the focus on environmental issues has grown exponentially, resulting in various global commitments and initiatives aimed at transforming current institutional, economic, and financial models.

This training is centered on the Corporate Sustainability Reporting Directive (CSRD) requirements, with a particular emphasis on conducting the Double Materiality Assessment (DMA). Understanding both financial and non-financial impacts is crucial for companies seeking compliance under CSRD. This training will utilise a funnel approach and include specific modules tailored for operating companies (opco), asset managers, banks, and insurance providers.

By the end of this training, participants will:

• understand the concept of Double Materiality within the CSRD framework;
• learn the step-by-step process for conducting a Double Materiality Assessment, including stakeholder mapping, value chain analysis, and impact assessment;
• gain insights into the differences in applying DMA for non-financial and financial services;
• develop the skills to create a high-level roadmap for implementing DMA within their organisation.

• Introduction to Double Materiality
  • Overview of Double Materiality in the context of CSRD.
  • Financial vs. impact materiality: definitions and differences.
• Funnel approach for conducting DMA
  • Stepwise approach from understanding the broader context down to specific details.
  • Mapping value chain and identifying significant impacts.
• Sector-specific modules
  • Non-financial services (operating companies): approaches for companies to assess impacts along their value chain.
  • Financial services (banks, Asset Managers, insurance): assessing impacts related to financial products, financed emissions, and exposure to sustainability risks.
• Practical implementation and use cases
  • Real-life examples of successful Double Materiality Assessments.
  • Best practices for stakeholder engagement and internal value chain mapping.

This training is coordinated by Michael Horvath, Claire Cherpion, Julien Melotte and Julien Jacqué, Partners at PwC Luxembourg.

Michael has acquired a strong financial and regulatory audit as well as advisory background and significant experience leading projects in the asset management sphere.

In the recent past, Michael has been particularly involved in various regulatory projects related to the implementation of the EU regulatory framework for sustainable finance (i.e. SFDR, taxonomy regulation, CSRD) at entity and product level. Michael is involved in various other regulatory projects for clients, from DORA, AML/CFT regulation over CSSF circular 18/698 to MICA.

Julien is a sustainability and audit partner having more than 15 years expertise in advising or auditing large listed groups headquartered in Luxembourg. He is leading PwC’s Luxembourg corporate sustainability consulting and assurance practices with a clear focus on sustainability strategy, non-financial reporting (CSRD readiness and assurance), transformation and assurance.

He is also leading the Broader Assurance Services practice in Luxembourg with particular focus on sustainability, data assurance, IT risks and processes and controls.

As a process and controls expert, Julien manages significant finance and non-financial transformation project for clients operating in various industries.

Julien is the EMEA Sustainability in Finance Transformation Leader at PwC and is actively engaged in PwC EMEA’s CSRD Centre of Excellence. With over 12 years of consulting experience, he currently oversees PwC LU’s Sustainability Reporting and Transformation services.

Julien holds a degree in Mechanical Engineering and Corporate Finance and has provided extensive support to clients in the implementation of data and technology solutions. Over the past few years, he has assisted both financial and corporate clients in their sustainability journey, spanning strategy, transformation, and reporting. Julien possesses both theoretical knowledge and practical expertise in ESG regulations such as CSRD, EU Taxonomy, EU ETS, and CBAM.

Claire is a risk assurance partner at PwC Luxembourg and focuses on sustainability reporting, assurance and consulting.

With more than 20 years in auditing and advising, she supports large clients to demonstrate the robustness of their control environment and processes under the international standards such as ISAE 3000. She has developed a strong expertise in sustainability and climate reporting to advise or assess clients’ disclosures on non financial information. She is actively involved in PwC's CSRD/TCFD working groups. She is certified by Cambridge business and climate change – Towards net zero emissions.