Double Materiality Assessment, Implications for the Oil and Gas Sector

Abstract

Abstract The paper aims to discuss the concept of double materiality in sustainability reporting, including conducting double materiality assessments, highlighting the associated challenges, and summarizing current approaches for oil and gas companies. The increasing relevance of the materiality concept in non-financial disclosures has been promoted by various non-financial reporting frameworks and standards published by multiple stakeholders, including regulators globally. The paper aims to review the existing research and analysis conducted on non-financial disclosures of companies, including oil and gas, to evaluate the consistency regarding adopting double materiality in their sustainability disclosures. It outlines the challenges associated with recent assessment approaches due to the novelty of double materiality and highlights mitigation strategies based on the current sustainability disclosure landscape. Double materiality is relatively new and open to a high degree of subjectivity and interpretation. The paper aims to provide a simplistic approach to understanding the applicability and maturity of the double materiality assessment process.