[Double Materiality module]
Following the ESRS standards directives, when assessing human rights related IROs, the severity of the impact takes precedence over its likelihood for human rights related (potential) negative impacts. This is different from the way Datamaran normally calculates IRO scores.
Furthermore, any potential negative impact can be marked as related to human rights. When creating or modifying an IRO related to human rights, an optional checkbox will appear in the IRO assessment modal. When selected, the calculated IRO score will be the same as the severity score.
Only potential negative impacts (likelihood <5) can be marked. When classification is actual (likelihood = 5) the checkbox will disappear.
Because ESRS does not specifically identify which AR-16 sub-topics or sub-sub-topics are “human rights related,” it is the user’s responsibility to identify those IROs that are human rights related; as it will depend on how the IROs are worded and interpreted within the context of the company’s operations and value chain.
By the nature of their topic, it is reasoned that IROs linked to the following Datamaran topics would need to follow this human rights rule:
- Human Rights,
- Children Rights
- Other topics like “Supply chain management” in relation to suppliers’ practiceses
Similarly, AR-16 sub-sub-topics like “Forced labor” or “Child labor” would also be reasonably linked to the human rights expected ruling. Other Datamaran topics or ESRS sub-topics and sub-sub-topics might also fall under this rule. Thus, user discretion within their unique company context shall be required to ensure compliance with this rule.