Assessing the Early Adoption of Double Materiality
- This thesis examines the early adoption of the double materiality concept in the sustainability reporting of companies listed in the Swiss Market Index Expanded (SMI Expanded). Double materiality, which encompasses both financial and impact materiality, has become a critical requirement under the European Sustainability Reporting Standards (ESRS), significantly influencing corporate disclosure of sustainability information. This study provides an in-depth analysis of how Swiss companies have integrated double materiality into their sustainability reports ahead of formal regulatory mandates. Through a systematic literature review and content analysis of sustainability reports from 2022 and 2023, the study identifies substantial shifts in reporting practices, including a significant rise in double materiality adoption—from less than one-third of companies in 2022 to nearly two-thirds in 2023. The findings indicate a reduction in the number of reported material topics post-adoption, with a shift away from external stakeholder-orientedThis thesis examines the early adoption of the double materiality concept in the sustainability reporting of companies listed in the Swiss Market Index Expanded (SMI Expanded). Double materiality, which encompasses both financial and impact materiality, has become a critical requirement under the European Sustainability Reporting Standards (ESRS), significantly influencing corporate disclosure of sustainability information. This study provides an in-depth analysis of how Swiss companies have integrated double materiality into their sustainability reports ahead of formal regulatory mandates. Through a systematic literature review and content analysis of sustainability reports from 2022 and 2023, the study identifies substantial shifts in reporting practices, including a significant rise in double materiality adoption—from less than one-third of companies in 2022 to nearly two-thirds in 2023. The findings indicate a reduction in the number of reported material topics post-adoption, with a shift away from external stakeholder-oriented topics, such as social commitment and environmental impacts, towards internal priorities like employee engagement and sustainable finance. The study highlights the challenges of implementing double materiality, including inconsistencies in materiality interpretations and the lack of standardized reporting methodologies. These findings underscore the necessity for enhanced regulatory guidance and robust assurance processes to ensure alignment with emerging standards. This research offers valuable insights for Swiss companies, regulators, and stakeholders, emphasizing the need to align sustainability practices with evolving regulatory frameworks. By providing empirical evidence from the Swiss context, this thesis contributes to the academic discourse on double materiality, serving as a benchmark for future research and guiding companies in navigating complex sustainability disclosure requirements.…

