Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/311090 
Year of Publication: 
2024
Series/Report no.: 
JRC Working Papers in Economics and Finance No. 2024/5
Publisher: 
European Commission, Ispra
Abstract: 
We offer an applied approach to the double materiality assessment of environmental, social and governance (ESG) matters, which could serve as practical guidance to the 60K companies required by EU regulation (CSRD) to carry out this assessment. Focussing on the financial materiality of climate physical risks, due to its regulatory priority, we provide numerical examples, developed in compliance with all relevant regulatory requirements (ESRS). These examples are based on a generalised methodology, which allows to perform both impact and financial materiality assessments on any sustainability matter, adopting the most suitable sources of information: publicly available scientific data to perform fully transparent ESG risk estimates and expert judgment (of firm managers and/or advisors) to consider the significant idiosyncratic features characterising the financial effects of ESG matters.
Subjects: 
Sustainability reporting standards
double materiality assessment
ESG sustainability report
environmental sustainability
ESG risk management
climate physical risk
idiosyncratic forward-looking information
JEL: 
D81
G32
K32
Q51
Q54
Q56
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.