Materiality determination is now a mandatory part of sustainability disclosure under both IFRS S2 and CSRD ESRS. ThemisIQ's Materiality Assessment delivers single materiality for IFRS S2 and double materiality for CSRD — through one engine, with the methodology your auditor expects.
Both major global frameworks now require entities to formally determine which sustainability topics are material — and to document the methodology behind that judgment. Auditors and assurance providers expect to see this work, not just its conclusions.
Effective FY2024+ in Canada (CSDS), the UK, Australia, New Zealand, Brazil, Japan and across 30+ ISSB-adopting jurisdictions. S2 requires identifying climate-related risks and opportunities that could reasonably be expected to affect enterprise value — a single (financial) materiality judgment.
Large EU companies and EU-listed entities file their first ESRS reports starting in 2026 for FY2025 data; Wave 2 listed SMEs follow for FY2026. CSRD requires double materiality — the topics that affect the entity (financial) and those the entity affects (impact), across all ten ESRS topical standards.
Sustainability disclosure obligations are landing across functions. Many organizations don't yet have a dedicated sustainability lead — the responsibility falls to whoever is closest to the regulatory exposure. The Materiality Assessment is designed to be useful regardless of where you sit.
Both frameworks ask you to identify which sustainability topics are material. They differ on what counts as material — and that distinction is what separates an S2 disclosure from a CSRD disclosure.
The outside-in view: how do climate-related (and broader sustainability) risks affect the entity's enterprise value? One axis: financial impact.
Single materiality plus the inside-out view: how does the entity affect people and the environment? Two axes: financial and impact materiality, plotted as a matrix.
Each ESRS topic is plotted on both axes. Topics in the top-right are material on both — your highest reporting and management priority.
A guided wizard captures the entity's profile and produces a complete materiality determination, risk register, and methodology-rich report ready for review.
Both samples below were generated by the live ThemisIQ Materiality Assessment for a fictional industrial-manufacturing entity (Magnetic Industrial Components Ltd., FY2025) operating in Eastern North America and Northern Europe. Same entity, two standards — the difference is the standard, not the engine.
Samples are illustrative outputs from the live tool, generated for a fictional entity. Your own report would be specific to your inputs and saved to your private account.
The Materiality Assessment is grounded in independent, public methodology — no licensed third-party classification is reproduced. Every weighting and topic mapping is traceable to its source framework.
The ThemisIQ Materiality Assessment is a structured screening intended to scope and support a formal IFRS S2 disclosure or CSRD double materiality assessment. A fully compliant ESRS assessment additionally requires a defined materiality threshold agreed by governance, stakeholder engagement informing the impact axis, and resilience testing across a range of scenarios. We tell you this on the cover of every report, not in fine print.
Materiality assessment is included in our reporting-obligation packs and in three of our driver-based starter packs.
Whether you're scoping an IFRS S2 climate disclosure or preparing for CSRD ESRS, we can walk you through the methodology and the deliverable. Most conversations take 30 minutes.