The London Stock Exchange (LSE) guidance on environmental, social, and governance (ESG) issues recommends that issuers “should explain the relevance of ESG factors to their business model and strategy”, describing how they are positioning themselves either “to benefit from these factors or to manage and mitigate the risks associated with them”.1 There are two sides to this equation: the effect of the outside world on an organisation's operations (OutsideIn), and the organisation's effect on people and the planet (Inside-Out). This two-way street takes us to the heart of double materiality. The first pertains to financial materiality; the second, to impact materiality.
Although, like the United States, the
