Completing a Double Materiality Assessment with Inclus (Option B)

Created by Julie Olesky, Modified on Wed, 28 Aug at 1:02 PM by Julie Olesky

With Inclus’ software and support from our Customer Success team, you can quickly and easily conduct the Double Materiality Assessment. We offer two different approaches, the first of which is explained below.

1. Identification session

Using our readily made template, begin the process by reviewing the CSRD’s sub-topics and sub-sub-topics that we have compiled for you to determine which ones are material for your company and should be assessed from an impact materiality or financial materiality perspective.

We suggest you gather a small team of colleagues, possibly consultants or advisors, who can support you in selecting the topics.

You can either:

a) review the topics together in the Inclus platform, or

b) send out an Inclus Identification Assessment to your team, where they will vote on the topics that they think are material for the company. Make sure they write in the comments if the topic is actual or potential, negative or positive impact and specify whether it is material from an impact perspective, financial perspective, or both. This will be essential for accurately setting up the next stage of the process.

You can also suggest new topics to be added to the assessment if there are relevant ESG-related topics to be reported by your company that are not mentioned in the CSRD Standard.

2. Assessment

Once you have determined which topics are material for your company and from which perspectives, you are ready to begin the double materiality assessment. Based on the results of the identification session, you must tag the topics identified as material using the following tags: For impact materiality, tag the items as either Negative impact or Positive impact, and as Actual impact or Potential impact. For financially material topics, tag them as either Financial risk or Financial opportunity. This sorting process is very important for accurate reporting of your methodology. Your Inclus CSM will help you through these steps.

We have provided you with two options to conduct the assessment. You can either assess both Impact materiality and Financial materiality in the same assessment, or, if you want stakeholders to assess from one perspective only, this can also be done. Your Inclus CSM will help you set up the assessment correctly according to your needs.

Impact materiality topics are assessed according to Impact Severity and Likelihood, and Financial materiality topics are assessed according to Magnitude and Likelihood. You can adjust the criteria parameters as needed – for example, you may want to add a monetary value to the Magnitude parameters to be more concrete about the financial impact the topics have.

To begin the assessment, participants will first have to choose their Team, then they will begin by assessing the topics based on the impact type that has been determined in the identification phase.

3. Results

Once the assessment is complete, the results will be compiled in the Visualizations page. You can use the tags on the right hand side of the screen to filter by Actual or Potential Impacts.