This study aims to examine the relationships between the early adoption of double materiality, the structure of corporate governance and firms’ financial and corporate social responsibility (CSR) performance.
Using partial least squares structural equation modelling (PLS-SEM), the analysis draws on data from 206 European companies – 106 early adopters of double materiality and 106 non-adopters.
The results show that both early adoption of double materiality and a well-structured corporate governance are positively associated with financial and CSR performance. Additionally, financial performance mediates the relationship between these factors and CSR performance.
The findings suggest that implementing double materiality, supported by effective stakeholder engagement and strategic integration, can enhance both CSR and financial outcomes by aligning financial, environmental and social objectives.
This study contributes to CSR literature by providing empirical evidence on how the early adoption of double materiality supports sustainable development through improved corporate performance.
