Single versus double materiality of corporate sustainability reporting: Which concept will contribute to climate neutral business?
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In: Zeitschrift für Umweltpolitik & Umweltrecht, Vol. 45, No. 2, 2022, p. 210-248.
Research output: Journal contributions › Journal articles › Research › peer-review
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RIS
TY - JOUR
T1 - Single versus double materiality of corporate sustainability reporting
T2 - Which concept will contribute to climate neutral business?
AU - Stawinoga, Martin
AU - Velte, Patrick
PY - 2022
Y1 - 2022
N2 - In an attempt to realize decision usefulness of corporate sustainability reporting, standard setters and scholars are discussing a shift from a voluntary to a mandatory reporting approach. However, the EU Commission and the International Sustainability Standards Board (ISSB) follow different approaches regarding the materiality definition of mandatory corporate sustainability reporting. While the EU Commission focuses on double materiality, the ISSB concentrates on single materiality. In view of this controversy, the purpose of this paper is to analyze both materiality concepts and related sustainability reporting frameworks that significantly influence the future standardization process. Referring to a ’block model‘ between the EU Commission and the ISSB, a systematic connection of future sustainability reporting with the UN Sustainable Development Goals (SDGs) as well as the monetized reporting of externalities and science based climate targets are proposed. As the proposed ’block model‘ will contribute to the goal of climate neutral economy, it will also trigger a fundamental shift in the standardization process of sustainability reporting.
AB - In an attempt to realize decision usefulness of corporate sustainability reporting, standard setters and scholars are discussing a shift from a voluntary to a mandatory reporting approach. However, the EU Commission and the International Sustainability Standards Board (ISSB) follow different approaches regarding the materiality definition of mandatory corporate sustainability reporting. While the EU Commission focuses on double materiality, the ISSB concentrates on single materiality. In view of this controversy, the purpose of this paper is to analyze both materiality concepts and related sustainability reporting frameworks that significantly influence the future standardization process. Referring to a ’block model‘ between the EU Commission and the ISSB, a systematic connection of future sustainability reporting with the UN Sustainable Development Goals (SDGs) as well as the monetized reporting of externalities and science based climate targets are proposed. As the proposed ’block model‘ will contribute to the goal of climate neutral economy, it will also trigger a fundamental shift in the standardization process of sustainability reporting.
KW - Management studies
KW - Sustainability Science
UR - https://beck-online.beck.de/?vpath=bibdata%2fzeits%2fZFU%2f2022%2fcont%2fZFU%2e2022%2eH02%2eNAMEINHALTSVERZEICHNIS%2ehtm
UR - https://online.ruw.de/suche/zfu/Singl-versu-doubl-materi-of-corpo-sustainab-repor--0f3b03b70852d161d52f8edfb55d0ca0
M3 - Journal articles
VL - 45
SP - 210
EP - 248
JO - Zeitschrift für Umweltpolitik & Umweltrecht
JF - Zeitschrift für Umweltpolitik & Umweltrecht
SN - 0931-0983
IS - 2
ER -