G&A Institute’s New Issue Brief Highlights Proposed Changes to Double Materiality Assessment Process in ESRS Exposure Drafts

NEW YORK, August 11, 2025 /3BL/ - Governance & Accountability Institute (G&A), a leading sustainability consulting and research firm, has released an Issue Brief on newly proposed changes to the double materiality assessment (DMA) process that is a central feature of the EU’s Corporate Sustainability Reporting Directive (CSRD).

The European Financial Reporting Advisory Group (EFRAG), the group responsible for simplifying and streamlining the European Sustainability Reporting Standards (ESRS), has launched a public consultation on the ESRS Exposure Drafts that include the proposed DMA revisions.

“Stakeholder feedback will be vital to ensure the DMA will remain both realistic for companies and a useful tool for raising the bar on corporate accountability,” said Louis Coppola, CEO & Co-Founder at G&A Institute. “The insights in our Issue Brief can help all interested parties understand the proposed revisions as they prepare to respond to the public consultation.”

Key findings of the Issue Brief include:

• the practical application of double materiality is being revised by EFRAG after public feedback following the first wave of CSRD reporting showed the DMA process had become overly burdensome.
• proposed changes to the DMA include adding clarity on the concept of information materiality and on what is and is not expected for a DMA.
• the revised draft includes a particular emphasis on “fair presentation” and how it relates to materiality, in alignment with the approach under the ISSB Standards – IFRS S1 and IFRS S2.
• the three topics levels would be reduced to two, significantly reducing the granularity of topics to consider during the DMA and giving companies more flexibility in reporting.
• EFRAG has drafted new guidance on some of the more technical and nuanced aspects of assessing impact materiality to help companies clarify how they approach the DMA process.

Coppola added, “G&A will continue to monitor the public consultation processes and we are available to help organizations navigate the evolving EU sustainability reporting standards.”

About G&A Institute, Inc.

Founded in 2006, Governance & Accountability Institute, Inc. (G&A) is a sustainability consulting and research firm headquartered in New York City. G&A helps corporate and investor clients recognize, understand, and develop winning strategies for sustainability and ESG issues to address stakeholder and shareholder concerns. G&A’s proprietary, comprehensive full-suite process for sustainability reporting is designed to help organizations achieve sustainability leadership in their industry and sector and maximize return on investment for sustainability initiatives.

Since 2011, G&A has been building and expanding a comprehensive database of corporate sustainability reporting data based on analysis of thousands of ESG and sustainability reports to help steer strategy for our clients and improve their disclosure and reporting. More information is available on our website at ga-institute.com.

FOR MEDIA INQUIRIES & INTERVIEWS, CONTACT
Louis D. Coppola
CEO & Co-Founder 
Governance & Accountability Institute, Inc. 
Tel 646.430.8230 ext 14 
Email lcoppola@ga-institute.com