The business landscape is evolving rapidly, driven by changing regulations, shifting consumer expectations, and an urgent need for a more sustainable and equitable future. Today, success is no longer measured solely by profit margins. Companies are being asked to think bigger—to consider their impact on society, the environment, and the wider world.
This is where Double Materiality comes in.
What started as a concept rooted in the financial services sector is now gaining traction across all industries. It’s redefining how businesses assess their performance and make decisions, shifting the focus from shareholder value alone to a more holistic understanding of success.
This means that companies are now being evaluated not just on how they generate profit, but at what cost—and the implications are significant.
Those that successfully incorporate double materiality are setting themselves up for long-term resilience, competitive advantage, and a reputation as leaders in responsible business.
The world is changing faster than ever, and businesses that fail to adapt risk being left behind.
Here’s why double materiality is becoming essential across all sectors:
Manufacturing
With new regulations targeting carbon emissions and waste management, manufacturers must account for both the financial risks associated with non-compliance and the environmental impact of their production processes. By adopting double materiality, they can innovate cleaner technologies, optimise resource use, and enhance supply chain sustainability.
Technology
Tech companies are under increasing scrutiny to address not only their energy consumption but also the societal impact of their products and services. From data privacy concerns to the environmental impact of hardware production, integrating double materiality helps them navigate complex stakeholder expectations.
Consumer goods
For retailers and consumer goods companies, it’s no longer enough to just sell products. They must demonstrate how they contribute to—or detract from—social and environmental goals. By embracing double materiality, these businesses can redefine their value proposition, attract conscious consumers, and build stronger brand loyalty.
While many companies are beginning to incorporate sustainability into their reporting, the majority are still treating it as a compliance exercise rather than a strategic imperative.
A 2024 PwC study found that while 78% of companies recognise the importance of sustainability, only 29% have integrated it into their core business strategy.
To move beyond box-ticking, companies need to:
The stakes are high. A 2024 report by the World Economic Forum estimates that companies failing to integrate double materiality into their operations risk losing up to 35% of their market value over the next decade due to factors like regulatory penalties, reputational damage, and loss of investor confidence.
Meanwhile, the potential rewards are substantial. The UN Sustainable Development Goals (SDGs) highlight that companies leading the charge in sustainability stand to unlock an estimated $12 trillion in business opportunities by 2030.
At Rio, we empower organisations to make smarter, more sustainable decisions, unlocking both business growth and a more equitable future.
Our platform enables you to:
Get started with a complimentary demonstration with our expert consultants today and discover how embracing double materiality can set your business apart.
By making double materiality a cornerstone of your strategy, your business can turn compliance into a competitive advantage, align with the future of responsible enterprise, and lead the change toward a more sustainable—and profitable—tomorrow.