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Title page 1
Contents 4
Acknowledgements 2
Abstract 3
1. Introduction 5
2. Overview of Double Materiality 5
2.1. Official Sector Perspectives 5
2.2. Academic and Industry Perspectives 7
2.2.1. Rationale 7
2.2.2. Costs and Benefits 7
2.2.3. Practical Applications 8
3. Double Materiality Framework 8
3.1. Defining Materiality Linkages 8
3.2. Detailed Description of Linkages 11
3.2.1. Arrow (1): Exogenous Physical and Transition Risks to a Bank 12
3.2.2. Arrow (2): Impact of a Bank's Activities on Climate Change and Resulting Physical and Transition Risk Drivers 13
3.2.3. Arrow (3): Feedback Effects from a Bank's Climate-Impacting Activities on Its Own Physical and Transition Risks 14
3.2.4. Arrow (4): Financial Spillover Effects from a Bank's Climate-Impacting Activities on the Physical and Transition Risk of Other Financial Institutions 15
3.2.5. Arrow (5): Non-Financial Spillover Effects from a Bank's Climate-Impacting Activities on the Broader Economy and Society 16
3.3. Defining the Components of Double Materiality 16
3.4. Defining Double Materiality from a Policy Perspective 18
3.5. Challenges 20
4. Conclusions 22
References 23
Figure 1. European Commission Double Materiality Perspective 8
Figure 2. Detailed Double Materiality Perspective for a Particular Bank 9
Figure 3. Impact Materiality 17
Figure 4. Financial Materiality 17
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