Understanding our impact: the Double Materiality Assessment (DMA)
The Corporate Sustainability Reporting Directive (CSRD) requires companies to integrate ESG reporting into annual financial statements, following strict data governance and audit standards. Based on 12 European Sustainability Reporting Standards (ESRS) with over 1,200 disclosure requirements, CSRD covers a wide range of ESG topics, including EHS, product stewardship, supply chain, HR, and governance.
For Mitsubishi Chemical Group, EU-based holdings and subsidiaries must report for FY2027 by July 2028. CSRD also mandates a Double Materiality Assessment (DMA), evaluating both the company’s impact on sustainability-related topics and the impact on the company’s financial performance.
A DMA helps companies understand their relevant sustainability impacts, risks, and opportunities from two perspectives:
- It looks at how environmental and social issues can affect a company´s financial performance (Outside-In) and
- How the company´s activities impact people and the planet (Inside-Out)
Based on the DMA we conducted, topics featured in the following ESRS are material to MCG subsidiaries in Europe:
