The double materiality assessment (DMA) is being significantly revised to be less of a burdensome compliance exercise. The DMA will be simplified through a "top-down" approach, starting with an analysis of the business model to identify the most obviously material topics, rather than a granular, bottom-up scoring process.
Lever 1
Lever
Description
Simpler, more strategic materiality in scope
To combat report length and complexity, there will be options available for sustainability statements to include executive summaries and dedicated data appendices.
Lever 2
More concise, readable reports
The minimum disclosure requirements (MDRs) for policies, actions, and targets (PATs) will be reduced, and topic-specific requirements will also be drastically reduced or moved to non-mandatory guidance.
Lever 3
Modification of the minimum disclosure requirements
Clarity and usability of the standards will be enhanced by distinguishing between mandatory and voluntary disclosures, reducing optional data points, and reorganizing content to support both implementation and assurance.
Lever 4
Improved clarity and accessibility
Other burden reduction measures will be introduced, including relief for acquisitions, unavailable or sensitive data, simplified metrics, and forward-looking disclosures.
Lever 5
Relief measures to reduce reporting burden
There is a strong emphasis on improving alignment with the International Sustainability Standards Board’s (ISSB) International Financial Reporting Standards (IFRS) S1/S2 standards. This includes aligning the language used for common provisions wherever possible (e.g. on greenhouse gas boundaries).
Lever 6
Enhanced interoperability