Double Materiality in European Water-Sector Companies: Evidence from the First Application of the European Sustainability Reporting Standards

The use of European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability Reporting Directive (CSRD) represents a major change in corporate sustainability reporting, particularly through the formalisation of the double materiality principle. Despite its regulatory relevance, empirical evidence on how organisations disclose double materiality remains limited, especially during the first reporting cycle. This study provides early empirical indicative evidence on the application of double materiality in disclosure following the initial ESRS reporting. It examines how leading European water-sector companies and environmental service providers with urban water activities integrated this approach into their 2024 sustainability disclosures. A mixed-methods design is applied, combining qualitative content analysis with descriptive quantitative checks of sustainability, ESG, and integrated reports. The disclosed material topics are assessed against the ESRS thematic framework. The findings indicate a strong convergence on the key environmental issues reported, notably climate change, water management, and circular economy-disclosed practices, including companies not yet fully subject to ESRS requirements. In contrast, social and governance disclosures suggest greater heterogeneity. Overall, the results suggest that broader material coverage does not necessarily imply higher information quality, as this reflects the breadth of disclosure rather than its quality, reinforcing double materiality as a sector-driven prioritisation mechanism.