The concept of "double materiality" has become central to corporate sustainability reporting, especially in the context of the European Union’s Corporate Sustainability Reporting Directive (CSRD). Double materiality refers to the dual consideration of both financial AND environmental, social, and governance (ESG) factors in determining what information a company must disclose.  

This dual focus requires companies to evaluate how sustainability issues affect their financial performance (outside-in perspective) and how their activities impact the environment and society (inside-out perspective).  Locus software can help.