planning isn’t enough: why strategic thinking is essential for double materiality
published 1.10.25
Businesses often confuse strategic planning with strategic thinking. While both are essential, they serve very different purposes—and when it comes to double materiality assessments, one is far more critical than the other.
Strategic planning is about setting goals, creating timelines and determining steps to achieve them. It’s concrete, linear and action-oriented. Strategic thinking, on the other hand, is abstract. It’s about asking big questions, considering long-term possibilities and reflecting on what truly matters before deciding how to act.
In the often hurried pursuit of completing double materiality assessments, organizations will rely too heavily on strategic planning—meeting deadlines, compiling data and producing reports. Yet, without the space for strategic thinking, double materiality efforts risk falling short of their potential.
So here’s my case for why strategic thinking is essential for double materiality.
Double materiality assessments require a deep understanding of both:
Impact Materiality: How your organization affects the environment and society (e.g., a food company’s plastic packaging contributes to ocean pollution).
Financial Materiality: How environmental and social factors affect your organization (e.g., a utility company anticipates financial strain from stricter carbon regulations).
This dual perspective goes beyond surface-level metrics. It demands a holistic view of a business’s role in a rapidly changing world. Without strategic thinking, organizations are vulnerable to:
Missing Hidden Risks: Rushing through assessments often means overlooking emerging issues like biodiversity, water scarcity or plastic pollution.
Reinforcing Echo Chambers: Relying on familiar stakeholders or solely internal perspectives stifles fresh insights and hinders the discovery of innovative solutions.
Inaction or Misaction: Collecting data without taking the time to reflect can lead to reactive rather than strategic decisions.
Strategic Thinking Creates Better Outcomes
Strategic thinking adds depth, clarity and direction to double materiality assessments. Here’s how:
Broadens Perspectives: Strategic thinking encourages leaders to look beyond their immediate concerns. It asks: How will global trends shape our business over the next decade? What overlooked areas in our value chain might create risks or opportunities? This reflection ensures no stone is left unturned.
Incorporates Diverse Voices: Strategic thinking values input from a variety of stakeholders, from supply chain partners to local communities—and all your employees). This diversity challenges assumptions and leads to richer, more actionable insights.
Connects the Dots: By stepping back and reflecting, organizations can identify patterns, align findings with their purpose and prioritize actions that create long-term value.
Building Reflection into Double Materiality Assessments
To integrate more strategic thinking into your materiality process, consider these steps:
Carve Out Time for Reflection: Build intentional pauses into the assessment process. After gathering data, ask your team: What patterns do we see? Are we considering both short- and long-term risks? How do these findings align with our purpose and strategy? At qb., my team and I do this through four milestones, the most significant being the Stakeholder Readout (a meeting with key decision-makers and all internal stakeholder participants to digest and reflect on findings).
Engage a Wider Range of Stakeholders: Go beyond your core team to include voices from all your employees, across the value chain, impacted communities and even external critics.
Focus on Actionable Insights: Strategic thinking isn’t just about reflection; it’s about identifying where to act. Prioritize actions that drive business outcomes while addressing societal needs.
More Thinking, Less Rushing
Double materiality isn’t a compliance exercise—it’s a tool for building resilience and driving innovation. But its value depends on how well it's used. By creating space for reflection and embracing diverse perspectives, businesses can turn double materiality from a report into a roadmap for long-term success.
Are you ready to think strategically about your double materiality efforts? Let’s start a conversation.
by Sam Hartsock
Cofounder + Partner
