The ongoing construction of global sustainability reporting standards is a significant change at the heart of the world’s economic engine. It should neither hinder nor betray the spirit of efforts over the past 40 years to progress towards sustainable development.
Stakeholders, including investors, now publicly claim that sustainability reporting standards must take into account the impact of organizations on economies, environment and society and facilitate the transition to sustainable development.
In order to take into account the impact of organizations on the environment and society, it is necessary to use the so-called "double materiality" approach. On the one hand, it is necessary to have socio-environmental information that impacts the activity of organizations, but also to know the impact of the activity of organizations on the environment and society.
The double materiality approach, which allows these two dimensions to be taken into account, is already used by many players, and gives the private sector the means to demonstrate that its sustainability strategy is effective, not only through its financial results but also by showing how a company addresses its stakeholders (employees, suppliers, customers, communities, investors, etc.) and our planet (climate, biodiversity). Double materiality is also critical to sovereign entities investing for the long term as recently indicated by the World Bank and the NGFS.
It is by enabling connections between these two pillars that companies will have a coherent framework for putting sustainability at the heart of their business model.