The Double Materiality of Chemicals: Why SVHCs Are Critical to CSRD Reporting

The concept of double materiality is reshaping how companies think about sustainability and risk management, particularly in the context of the Corporate Sustainability Reporting Directive (CSRD). Double materiality requires companies to consider both financial materiality—how environmental and social factors impact the company’s financial performance—and impact materiality—how the company’s operations affect the environment and society.

One area where this dual approach is particularly important is in the management of Substances of Very High Concern (SVHCs). These hazardous chemicals pose significant risks, both to the environment and human health, making them critical to sustainability reporting. In this article, we will explore why SVHCs are central to CSRD reporting and how the double materiality framework applies to chemical management.