CSRD: conducting the Double Materiality Assessment

ESG officers, sustainability managers, risk officers, compliance professionals, financial services managers, and stakeholders responsible for sustainability reporting.

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 Horvath is a partner at PwC with extensive expertise in sustainable finance and the asset management industry, including both financial and real assets. Since joining PwC Switzerland in 2011 and PwC Luxembourg in 2018, he has led significant projects in regulatory audit and advisory, focusing on the asset management sector. Michael has played a key role in implementing the EU regulatory framework for sustainable finance, including SFDR, taxonomy regulation, and CSRD, as well as other regulatory initiatives such as DORA, AML/CFT, CSSF circular 18/698, and MICA. He is a certified public accountant in Switzerland and Liechtenstein and has contributed to designing compliance frameworks and operational implementations driven by regulatory changes. His notable client projects include defining target operating models for Luxembourg AIFMs, digital operational resilience planning, AML/CFT framework implementation, and ESG/sustainability process design, supported by his involvement in training and regulatory advisory.
• Julien Melotte is a partner specialising in sustainability and audit with over 15 years of experience advising and auditing large listed groups headquartered in Luxembourg. He leads PwC’s Luxembourg corporate sustainability consulting and assurance practices, focusing on sustainability strategy, non-financial reporting (including CSRD readiness and assurance), transformation, and assurance. Julien also heads the Broader Assurance Services in Luxembourg, emphasising sustainability, data assurance, IT risks, and controls. As a process and controls expert, he manages significant finance and non-financial transformation projects across various industries. His expertise includes sustainability strategy development, data assurance, technology implementation, internal controls, and leading major client projects in sustainability reporting and financial audits.
• Julien Jacqué is a partner in PwC Luxembourg’s technology consulting department, co-leading the ESG Non-financial sector service offering and ESG Data & Technology services across sectors. With over 12 years of experience, he supports operational and financial clients in launching Sustainability and ESG transformation programs, guiding them from ESG strategy definition to business model transformation and regulatory reporting. Specialising in transport, logistics, manufacturing, and financial services, Julien leads large-scale transformation projects and international teams, including ESG reporting upgrades for telecom clients. His expertise includes ESG strategy, Net Zero, business intelligence platforms, and end-to-end project leadership for major clients in Europe and beyond.
• Claire Cherpion is a partner at PwC Luxembourg Broader Assurance Services, specialising in Sustainability and Sustainable Finance. She leads readiness assessments and assurance reviews under ISAE 3000, ensuring compliance with GRI/SASB standards and the accuracy of non-financial data in sustainability reports for financial market players and operational companies. Claire is actively involved in PwC’s TCFD, CSRD, EFRAG, and Taxonomy working groups. Her expertise includes project management of environmental data processes, sustainability KPI reviews, ESG strategy workshops, and authoring sustainability content. She has advised clients on EU regulatory compliance and led major projects in non-financial reporting and sustainability verification.