Translation of sustainability report now twice as essential

Today, sustainability work is a natural part of everyday life for businesses, and double materiality assessment has become an increasingly important process within sustainability reporting. Furthermore, it is a requirement for all companies covered by the new sustainability directive, the CSRD (Corporate Sustainability Reporting Directive). But what does a double materiality assessment actually mean? And why can it be important and useful even for companies that are not directly covered by the new reporting requirements? Here, we take a look at the concept and how it can impact your company's work and strategy regarding the translation of a sustainability report.

What is a double materiality assessment?

In sustainability reporting, a materiality assessment is a method and process that helps companies identify, assess and prioritise the most relevant areas where their operations have a material impact on sustainability. Previously, this assessment usually involved only an inside-out perspective, but with the introduction of new reporting requirements, double materiality assessment has become a new feature that takes into account two important dimensions: impact materiality and financial materiality. The “double” therefore means that the assessment must now also include an outside-in perspective, i.e. not only focusing on how a company affects its environment, but also how the environment affects the company financially from a sustainability perspective (known as double materiality).

Impact materiality is about how a company affects the outside world, both environmentally and socially. This includes aspects such as carbon emissions, resource consumption, and social responsibility. Financial materiality, on the other hand, is about how external factors such as climate change and social challenges affect the company's business model and future development. A double materiality assessment therefore takes both of these dimensions into account to create a more nuanced picture and understanding of the impacts, risks, and opportunities linked to sustainability aspects within the business.

Which companies must conduct a double materiality assessment?

Double materiality assessment is a requirement under CSRD, an EU directive that aims to improve the quality and comparability of sustainability reporting and to form a more relevant and nuanced picture and analysis of sustainability impacts from the dual perspective, thereby creating business value by identifying and engaging the entire value chain and key stakeholders such as employees, customers, suppliers, investors and other business partners.

CSRD is being implemented successively for different companies at different times, in brief as follows:

• 2024 (reporting 2025/2026): Large companies with more than 500 employees
• 2025 (reporting 2026): Large companies with more than 250 employees
• 2026 (reporting 2027/2028): Small and medium-sized enterprises on regulated markets

However, this is also subject to the fulfilment of certain conditions regarding, for example, the balance sheet total and net turnover. More detailed information on which companies are covered by CSRD and when can be read at: Questions and answers about CSRD | FAR

Not only a legal requirement, but also a business opportunity?

Preparation and adaptation to the CSRD regulations can be time-consuming and resource-intensive, particularly initially, but it is also important to recognise the potential benefits and business opportunities that the work entails. As well as the benefits of subsequent translation of the sustainability report and other documentation into relevant languages. A double materiality assessment is a process that creates a greater understanding of your company's business model and strategy and its impact on relevant stakeholders as well as its own future development. It therefore provides a new perspective and new insights regarding impact, risks and opportunities. Insights that can then be applied and utilised in the formulation of strategies that not only benefit the climate and the environment, but also future business development. The double materiality assessment and the content of the sustainability reporting provide your company with a relevant basis for decision-making in order to create competitive advantages and desirable development for your stakeholders.

Translation of sustainability report and other documentation into relevant languages

Here at Språkbolaget, we are passionate about language and translation, which brings us to what we ourselves find the most fun! Once the important and extensive work has been done and your sustainability report and associated documentation have been produced, you also need to consider which of these should and ought to be translated into other languages. Even if your company is not directly covered by the new reporting requirements, you might be—or want to become—a supplier or other business partner to companies and organisations that must meet the requirements of the CSRD. In that case, being able to provide relevant data and documentation in the right way and format can be a clear competitive advantage. As well as in the language desired by the recipient. Publishing (double) material of material significance in several relevant languages is also a good way to reach relevant stakeholders in different countries and keep them informed about how your company works with and develops within various sustainability areas.

Don't hesitate to contact us – we are happy to help!

Within our network, Språkbolaget has translators and reviewers who possess the necessary expertise in sustainability report translation to ensure that your company's employees, owners, customers, suppliers and other stakeholders have access to relevant information, regardless of country and language. We are always on hand and look forward to discussing your current needs and future planning!