Trends: Double Materiality and the Requirement for Sustainability Reports

Corporate attorney Sofía Suárez published an article in the Colombian-American Chamber of Commerce's (AmCham Colombia) Business Mail magazine highlighting the concept of double materiality. This aspect of corporate sustainability refers to the evaluation of criteria for materiality impact and financial materiality – in other words, analysis of how the internal operations of a corporation affect its outlook and simultaneously how external factors, in particular those relating to environmental, social and governance (ESG), affect the economic value of an organization. In her article, Ms. Suárez looks at the European Union's (EU) and Colombia's obligations with respect to double materiality and corporate sustainability reports, recommending that Colombian companies begin to implement this practice even though it is not yet a legal requirement.

READ: Trends: Double Materiality and the Requirement for Sustainability Reports