[Double Materiality module]
The materiality assessment of Impacts, Risks, and Opportunities (IROs) must be performed by each company based on their own knowledge of their business, operations, and value chain. This is typically led by Subject Matter Experts (SMEs), who may also need to engage with affected stakeholders in some cases.
Datamaran’s IRO Hub provides a structured way to assess, score, and calculate materiality at the IRO level using a default methodology.
Default Scoring approach
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IROs are scored on a 1–5 scale across specific criteria.
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Scores are combined to calculate the final IRO score, which determines the materiality threshold at the IRO level.
The default formulas are:
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Risks & Opportunities:
Magnitude × Likelihood / 5 -
Impacts:
Severity × Likelihood / 5
Where Severity is calculated as:(Average(Scale, Scope, Irremediability*) + Max(Scale, Scope, Irremediability*)) / 2
* Irremediability applies only to negative impacts.
Datamaran also supports custom scales and formulas.
Criteria for assessment
For Risks & Opportunities:
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Classification (current / anticipated)
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Time horizon
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Magnitude
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Likelihood
For Impacts:
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Classification (current / anticipated)
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Time horizon
- Scale
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Scope
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Likelihood
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Irremediability (only for negative impacts)
As you progress in the IRO assessment, the IRO view will reflect the latest progress.
You can also map IROs to ESRS-AR16 at this stage.
Viewing IROs
You can view your IROs in two formats:
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By criteria – showing the breakdown of scores across dimensions.
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By score – displaying the calculated IRO materiality score.
Reach out to our Implementation & Training team for additional information on the assessment scales used for the IRO dimensions.