Sustainability isn’t just about ticking boxes for your next report. It’s about seeing the big picture – how the world is affecting your business and how your business is affecting the world. That’s the idea behind double materiality, and it’s something manufacturers across New Zealand should start paying attention to.

Read our Need to know: Double materiality guide or get in touch with thinkstep-anz’s expert Martin Fryer to talk through what this could look like for your business.

This approach goes beyond compliance. It can help you build a more resilient business, unlock opportunities and manage risks – whether you’re exporting food and beverages, building homes or making parts for machinery.

What is double materiality?

Double materiality means looking at sustainability from two perspectives:

Impact materiality: how your activities affect the environment, society and economy.

Financial materiality: how environmental and social issues affect your financial performance, risks and long-term success.

This approach is already required in some parts of the world. For example, the European Union’s Corporate Sustainability Reporting Directive (CSRD) mandates it. Even if you don’t export to the EU, it’s likely your customers or investors will start asking for the same level of transparency.

Why does this matter in New Zealand?

Even though New Zealand’s reporting regulations currently focus more on financial materiality, there’s growing interest in taking a broader approach. Why? Because it makes business sense.

Let’s look at a few examples:

1. Food and beverage manufacturing

Impact materiality: The way you source ingredients matters. Are you contributing to deforestation, water stress or unethical labour practices?

Financial materiality: If global retailers tighten their supply chain standards (as many already have), you could lose access to key markets unless you can prove your practices are sustainable.

What you can do: Use certified ingredients, invest in traceability, or switch to regenerative farming partners. These changes reduce your impact and protect your bottom line.

2. Textiles and consumer goods

Impact materiality: The fast fashion model creates waste and pollution, with many textiles ending up in landfill.

Financial materiality: Growing consumer demand for sustainable products is shifting the market. Products that aren’t seen as responsible may struggle to sell or fetch lower prices.

What you can do: Offer circular solutions – repair, reuse or recycling options. Use organic or recycled fibres and communicate these benefits clearly to customers.

3. Plastics and packaging

Impact materiality: Non-recyclable or single-use plastics contribute to environmental harm.

Financial materiality: New Zealand’s product stewardship schemes and bans on certain plastics are already affecting what’s allowed on shelves.

What you can do: Redesign your packaging to be reusable, compostable, or easier to recycle. It can improve your brand image and reduce regulatory risk.

4. Wood processing and furniture manufacturing

Impact materiality: If you’re sourcing timber from unsustainable forests or using toxic adhesives and finishes, your products could contribute to deforestation and indoor air pollution.

Financial materiality: Customers (especially in export markets) increasingly want certified sustainable products. Failing to meet these standards can result in lost contracts or reduced sales.

What you can do: Shift to FSC-certified or locally sourced timber, reduce the use of harmful chemicals, and promote your sustainability credentials to gain a competitive edge.

5. Dairy processing and export

Impact materiality: Emissions from dairy farms and wastewater from processing plants can contribute to climate change and water pollution.

Financial materiality: International buyers are tightening their sustainability criteria. Supermarkets and distributors may drop suppliers who can’t meet new climate and water standards.

What you can do: Work with suppliers to improve environmental performance, invest in cleaner technologies, and monitor your footprint to meet export requirements and avoid reputational risk.

Double materiality isn’t just about reporting

While many frameworks use materiality to guide sustainability reporting (like GRI or CSRD), the real value for manufacturers comes from using it to inform business strategy.

A double materiality assessment helps you:

Set meaningful sustainability goals

Prioritise where to invest time and resources

Build stronger relationships with suppliers and stakeholders

Understand what’s coming down the track—before it’s urgent

Show leadership in your industry

Think of it as a radar system. It shows where your business might be exposed (e.g. through emissions, water use, or social risks in the supply chain) and where there’s opportunity to innovate or lead.

Make it dynamic

Many companies still treat materiality as a one-off exercise. But the world doesn’t stand still, and neither should your approach.

To get the most value, make your double materiality process dynamic. That means:

Reviewing it regularly (e.g. annually, or when major changes happen)

Engaging internal teams and external stakeholders

Using future scenarios (e.g. climate impacts, changing regulations, supply disruptions)

Embedding it into decision-making at all levels

A few tips to get started

Don’t overcomplicate it. Start with the areas you know have the biggest impact or risk.

Talk to your stakeholders. Ask staff, suppliers, customers and community groups what matters most.

Use what’s already out there. Frameworks like GRI can help guide your approach, even if you’re not reporting formally.

Work with experts. A good materiality assessment can help you see the links between sustainability and business performance more clearly.

Ready to take action?

Whether you’re early on your sustainability journey or looking to sharpen your strategy, a dynamic double materiality approach will help you stay ahead of the curve.

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