IDEAS home Printed from https://ideas.repec.org/a/wly/sustdv/v34y2026is2p1477-1491.html

Determinants of the Early Adoption of Double Materiality: Evidence From EU Companies

Author

Listed:
  • Diego Andrés Correa‐Mejía
  • Jaime Andrés Correa‐García
  • María Antonia García‐Benau

Abstract

Effective from 2024, Directive (EU) 2022/2464 requires companies in the European Union (EU) to apply the double materiality approach in their sustainability reporting. However, some companies implemented this approach before it became obligatory. The aim of this paper is to identify the determinants of the early adoption of double materiality. To do so, the sample for this study consisted of 185 EU companies that ranked among the top performers in ESG in 2023, based on Refinitiv data as of December 31, 2023, the year preceding the mandatory adoption of double materiality. A logistic regression model was applied considering that of the 185 companies, 79 were early adopters of double materiality in their sustainability reports, and 106 had not yet implemented it (as at the end of 2023). The study results indicate that the early adopters tend to be companies whose reports include a materiality assessment section stating that they have followed the guidelines of the Corporate Social Responsibility Directive. Moreover, the materiality assessment method is described in detail and a materiality matrix is presented. These results may be useful for other companies, which can draw on some of the practices employed by early adopters. These findings are noteworthy because the early adoption of double materiality was voluntary and uncommon, and it was not previously known which reporting practices characterized early adopters.

Suggested Citation

  • Diego Andrés Correa‐Mejía & Jaime Andrés Correa‐García & María Antonia García‐Benau, 2026. "Determinants of the Early Adoption of Double Materiality: Evidence From EU Companies," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(S2), pages 1477-1491, March.
    • Handle: RePEc:wly:sustdv:v:34:y:2026:i:s2:p:1477-1491
    DOI: 10.1002/sd.70412
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/sd.70412
    Download Restriction: no
    File URL: https://libkey.io/10.1002/sd.70412?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Subhash Abhayawansa, 2022. "Swimming against the tide: back to single materiality for sustainability reporting," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 13(6), pages 1361-1385, September.
    2. Charl de Villiers & Ruth Dimes & Matteo La Torre & Matteo Molinari, 2024. "The International Sustainability Standards Board’s (ISSB) past, present, and future: critical reflections and a research agenda," Pacific Accounting Review, Emerald Group Publishing Limited, vol. 36(2), pages 255-273, May.
    3. Christian Nielsen, 2023. "ESG Reporting and Metrics: From Double Materiality to Key Performance Indicators," Sustainability, MDPI, vol. 15(24), pages 1-15, December.
    4. Asif M. Huq & Mahsa Mohammadrezaei, 2024. "A review ofex anteandex postmateriality measures, and consequences and determinants of material disclosures in sustainability reporting," Journal of Accounting Literature, Emerald Group Publishing Limited, vol. 47(5), pages 71-98, November.
    5. Lorenzo Simoni & Laura Bini & Marco Bellucci, 2020. "Effects of social, environmental, and institutional factors on sustainability report assurance: evidence from European countries," Meditari Accountancy Research, Emerald Group Publishing Limited, vol. 28(6), pages 1059-1087, April.
    6. Otley, David T., 1980. "The contingency theory of management accounting: Achievement and prognosis," Accounting, Organizations and Society, Elsevier, vol. 5(4), pages 413-428, October.
    7. Subhash Abhayawansa, 2022. "Swimming against the tide: back to single materiality for sustainability reporting," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 13(6), pages 1361-1385, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Federica Tonnarello & Carlo Vermiglio & Carlo Migliardo & Valeria Naciti, 2025. "The Impact of EU Taxonomy for Sustainable Activities on European Utilities' Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 34(3), pages 2848-2862, March.
    2. Vollmer, Hendrik, 2024. "Accounting and the shifting spheres: The economic, the public, the planet," Accounting, Organizations and Society, Elsevier, vol. 113(C).
    3. Kameleddine B. Benameur & Mohamed M. Mostafa & Ahmed Hassanein & Mohammed Z. Shariff & Wasim Al-Shattarat, 2024. "Sustainability reporting scholarly research: a bibliometric review and a future research agenda," Management Review Quarterly, Springer, vol. 74(2), pages 823-866, June.
    4. Sujatha Ravinarayana Bhat & Mohd Asrul Affendi Abdullah, 2023. "Factors Influencing Sustainability Reporting Practices among Listed Companies in Oman," International Journal of Economics and Financial Issues, Econjournals, vol. 13(3), pages 74-83, May.
    5. Herenia Gutiérrez‐Ponce, 2023. "Sustainability as a strategy base in Spanish firms: Sustainability reports and performance on the sustainable development goals," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(4), pages 3008-3023, August.
    6. Blerita Korca & Ericka Costa & Lies Bouten, 2023. "Disentangling the concept of comparability in sustainability reporting," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 14(4), pages 815-851, June.
    7. Boonlert-U-Thai, Kriengkrai & Kitiwong, Weerapong & Suttipun, Muttanachai, 2025. "Religiosity, secrecy culture, and corporate social responsibility report assurance," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 58(C).
    8. Charl de Villiers & Jing Jia & Zhongtian Li, 2022. "Corporate social responsibility: A review of empirical research using Thomson Reuters Asset4 data," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(4), pages 4523-4568, December.
    9. Najeb Masoud, 2025. "Moderating Effect of Sustainable Innovation on Internal Audit Effectiveness and Sustainability Auditing Practices: Evidence from Libya’s Public Sector," IJFS, MDPI, vol. 13(2), pages 1-24, April.
    10. Meltem Altin & Mawih Kareem Al Ani & Habiba Al-Shaer & Mustafa Ozgun Atalay, 2025. "Exploring the nexus between environmental initiatives and audit fees: the moderating role of supplier ESG and environmental management training," SN Business & Economics, Springer, vol. 5(10), pages 1-35, October.
    11. Paulo Pereira Silva, 2025. "Non-financial disclosure and stock price informativeness: the role of country-level institutional factors," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 39(2), pages 225-258, June.
    12. Victoria Bogdan & Luminița Rus & Diana Elisabeta Matica, 2025. "The Interconnection of Double Materiality Assessment, Circularity Practices Disclosure and Business Development in the Fast Fashion Industry," Sustainability, MDPI, vol. 17(4), pages 1-23, February.
    13. van Oorschot, Kim E. & Aas Johansen, Vilde & Lynes Thorup, Nanna & Aspen, Dina Margrethe, 2024. "Standardization cycles in sustainability reporting within the Global Reporting Initiative," European Management Journal, Elsevier, vol. 42(4), pages 492-502.
    14. K. R. Suprabha & J. Sreepriya & Krishna Prasad, 2025. "The impact of ESG disclosure on mitigating financial distress: exploring the moderating role of firm life cycle," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 22(3), pages 577-590, September.
    15. Joanna Krasodomska & Ewelina Zarzycka & Paweł Zieniuk, 2024. "Voluntary sustainability reporting assurance in the European Union before the advent of the corporate sustainability reporting directive: The country and firm‐level impact of Sustainable Development Goals," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(3), pages 1652-1664, June.
    16. Vasilii Erokhin & Dmitry Endovitsky & Alexey Bobryshev & Natalia Kulagina & Anna Ivolga, 2019. "Management Accounting Change as a Sustainable Economic Development Strategy during Pre-Recession and Recession Periods: Evidence from Russia," Sustainability, MDPI, vol. 11(11), pages 1-23, June.
    17. Francesca Francioli & Alberto Quagli, 2021. "Management accounting change and the rise of Vespa (1884-1965)," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2021(suppl. 2), pages 313-338.
    18. Patrick Velte, 2025. "Audit Quality and Materiality Disclosure Quality in Integrated Reporting: The Moderating Effect of Carbon Assurance Quality," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(3), pages 3785-3801, May.
    19. van Weeren, Michelle & Bluntz, Clarence, 2025. "What makes a rating useable? Shifting epistemic practices in the ESG rating field," Accounting, Organizations and Society, Elsevier, vol. 114(C).
    20. Zand, Fardad & Van Beers, Cees & Van Leeuwen, George, 2011. "Information technology, organizational change and firm productivity: A panel study of complementarity effects and clustering patterns in Manufacturing and Services," MPRA Paper 46469, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:sustdv:v:34:y:2026:i:s2:p:1477-1491. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1719 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.