Harmonizing financial and environmental integrated reporting: A transdisciplinary framework for public companies

Abstract

Increasing global environmental risks challenge businesses, prompting the integration of sustainability into decision-making. Frameworks like the CSRD and ISO standard emphasize transparent reporting. The shift from financial materiality to Double Materiality (DM) highlights the need to consider financial and social/environmental impacts. This study proposes a framework combining Life Cycle Sustainability Assessment (LCSA) and DM to evaluate environmental projects' performance, KPIs, and Return on Sustainable Investment (ROSI). A case study of a Wastewater Treatment Plant in Mexico City examines three sustainability scenarios amid water scarcity, with Scenario 1 being the most sustainable, as it reduces wastewater, costs, and energy. DM identifies six key issues: infrastructure, biodiversity, emissions, energy, human capital, and community impact. This tool helps stakeholders align their financial and ESG goals to foster sustainable value and resilience.