Dec 26, 2024 Today, IPC released its latest white paper, Why Double Materiality Assessments Matter: Compliance and Competitive Advantage. This publication offers a roadmap for companies in the electronics industry to navigate the European Union’s Corporate Sustainability Reporting Directive (CSRD) and leverage double materiality assessments (DMAs) for sustainable growth and competitive differentiation.
Developed in partnership with Anthesis Group, a leading global sustainability consultancy, the white paper provides actionable guidance to help companies address dual reporting obligations under the CSRD. DMAs require businesses to assess both their environmental and societal impacts (impact materiality) and the financial implications of sustainability-related issues (financial materiality).
The 12-page white paper addresses areas critical to implementing DMAs successfully including understanding double materiality and its dual perspectives, following a structured approach to conducting DMAs, navigating relevant regulations such as the CSRD, and engaging stakeholders effectively throughout the process. Additionally, it highlights the strategic advantages DMAs offer and includes a glossary and FAQ section to address common questions.
“The CSRD marks a landmark shift in sustainability reporting requirements for companies and the completion of a double materiality assessment represents an opportunity to deliver value beyond compliance,” said Mari Desangles, principal consultant, ESG advisory & mandatory reporting at Anthesis. “Through a double materiality assessment, industry members can understand their most significant sustainability-related impacts, risks, and opportunities, and then make informed strategic designs about how to address them.”
“More importantly, the white paper delves into the value proposition that DMAs offer organizations beyond just regulatory compliance. By understanding how sustainability issues affect their business and vice versa, electronics companies empowered by IPC resources can gain operational efficiencies in a competitive global marketplace,” said Kelly Scanlon, IPC lead sustainability strategist and white paper co-author.
The white paper highlights practical scenarios for businesses of varying size and location, including how a European semiconductor manufacturer would utilize a double materiality assessment to identify risks in its supply chain, from responsible sourcing of raw materials to production waste management. Another example features a multinational technology corporation aligning its reporting with both CSRD and ISSB standards, achieving greater transparency and operational efficiencies across its subsidiaries. The white paper also details the use of stakeholder mapping and tiered engagement strategies for effective communication with investors, suppliers, and internal teams.
Table of contents:
- Introduction
- Double Materiality Assessments: Two Sides of the Sustainability Coin
- Conducting a Double Materiality Assessment: A Structured Approach
- Regulations and Frameworks: CSRD and Beyond
- CSRD Impact on Technology Companies: Three Examples
- Engaging Electronics Industry Stakeholders and SMEs for a Successful Process
- Electronics Industry Considerations — Complex Supply Chains
- From Compliance to Competitive Edge: How DMAs Drive Sustainability Leadership
- Frequently Asked Questions (FAQ) and Glossary of Terms
- About IPC International, Inc. and Anthesis Group
Download the white paper at https://go.ipc.org/dma-whitepaper.
IPC (www.IPC.org) is a global industry association based in Bannockburn, Ill., dedicated to the competitive excellence and financial success of its 3,200+ member companies which represent all facets of the electronics industry, including design, printed board manufacturing, electronics assembly, advanced packaging and test. As a member-driven organization and leading source for industry standards, training, market research and public policy advocacy, IPC supports programs to meet the needs of an estimated $2 trillion global electronics industry.
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