2.1 Definition
The double materiality principle includes an inside-out perspective and an outside-in perspective at the same time. It assesses the material impact of a company on the economy, environment, and people including human rights (impact materiality), as well as the sustainability components that are or will be financially material to the company and its stakeholders (financial impact). Accordingly, a topic is material and thus reportable if it is material from either an impact or a financial perspective (or both).
The double materiality principle is currently also applied in the context of the European Sustainability Reporting Standards (ESRS) as well as in the regulations in Switzerland (Swiss Code of Obligations).