This thesis focuses on the application of Double Materiality Assessment in small and medium enterprises (SMEs): with particular attention to CW Lundberg AB, a Swedish company that produces and sells roof safety products and tools for installation of solar-panel systems. The research aims to examine the kind of learning and development that organisations undergo in order to support Double Materiality Assessment implementation,along with the changes and capacities needed for Double Materiality Assessment adoption.

Thus, adopting the qualitative case study research method, the study employs multiple interviews with the SME’s sustainability manager, analysis of CW Lundberg documents such as environmental product declarations that help in understanding the landscape of challenges and opportunities of SMEs when implementing the most sophisticated levels of sustainability reporting. The study identifies precursors that are crucial for effective Double Materiality Assessment implementation in SMEs which include leadership commitment, cross functional co-ordination in executing the plan, and the creation of new competencies in the sphere of sustainability.

The research emphasizes the ways in which Double Materiality Assessment has to be included in the current business practices and stresses on the importance of trying to implement Double Materiality Assessment in phases due to resource limitations. Moreover, the study also paints the picture on how Double Materiality Assessment can foster innovation, manage risks and develop competitive advantage for SMEs in the construction products industry. This thesis aims to fill literature gap by providing insight in the field of sustainability reporting in SMEs with specific focus on Double Materiality Assessment for the benefit of managers in firms who want to adopt the concept. The implications outlined in the study provide SMEs with guidance regarding the management of the risks and challenges relating to sustainability reporting and detail how Double Materiality Assessment can be used as a managerial tool that is capable of enhancing long-term organisational performance.