Double Materiality Assessment for the Wood and Furniture Industry

Between April and June 2024, Fedustria—the industry association for the wood and furniture industry—launched a Double Materiality Assessment (DMA) to support its member companies. Sustenuto was commissioned to lead the process, which involved mapping the value chain, identifying key sustainability impacts, risks, and opportunities, and guiding companies on how to incorporate these IRO's  in their sustainability reporting. Despite limited methodological guidance from EFRAG, the project successfully leveraged international frameworks such as the OECD Guidelines to deliver a foundational DMA for the industry.

How Fedustria and Sustenuto Tackled the DMA to Drive Sustainability in the Wood and Furniture Industry

With the introduction of the Corporate Sustainability Reporting Directive (CSRD), companies in the wood and furniture sector must now conduct a DMA to identify significant sustainability impacts, risks, and opportunities across their value chains. Recognizing the complexity of this task, Fedustria partnered with Sustenuto to carry out a sector-wide DMA, aiming to equip companies with clear insights into the sustainability issues they should prioritize in their reporting.

The Challenge

Although EFRAG has published reporting standards under the CSRD, methodological gaps remain—particularly for sector-specific applications. This made it difficult for individual companies to confidently execute a DMA. The absence of tailored guidance added further complexity to identifying relevant sustainability factors.

 To address this, Sustenuto applied its expertise in international frameworks—such as the OECD Guidelines—and adapted them to the wood and furniture context. This approach helped navigate uncertainties and ensured alignment with both regulatory expectations and industry realities.

Our Approach

Sustenuto's role in this project was to solely execute the Double Materiality Assessment (DMA) for Fedustria’s member companies. This process involved several key stages:

1.         Context Analysis and Value Chain Mapping:
We began by conducting an extensive analysis of the wood and furniture value chain. This helped outline the critical touchpoints for sustainability impacts and risks throughout the sector.

2.        Identification of Impacts, Risks, and Opportunities:
Through desk research and using sources such as industry reports, sustainability standards (ISSB, GRI), and scientific studies, we created a comprehensive list of potential sustainability impacts, risks, and opportunities relevant to the sector.

3.         Materiality Assessment:
We identified and prioritized the material impacts, risks, and opportunities based on their significance to the sector’s sustainability performance and financial outlook. This final list of material elements provides companies with clarity on the core areas their sustainability reports should focus on.

The entire process was informed by a mix of desk research, expert knowledge, and cross-referencing with key international sustainability frameworks, ensuring the assessment was robust and comprehensive despite the methodological gaps in existing guidance.

The Results

The project successfully delivered a Double Materiality Assessment for the wood and furniture industry, providing Fedustria's members with a valuable roadmap for their sustainability reporting. By relying on international frameworks and rigorous desk research, Sustenuto helped clarify the key sustainability impacts, risks, and opportunities that companies in this sector should prioritize. The project also set the stage for future sustainability efforts, offering insights into how these issues could affect the financial standing of companies in the industry. Although some conceptual challenges persisted due to a lack of clear methodology, the collective expertise of the Sustenuto team allowed for effective navigation of these complexities.