Assessing the Materiality of Impacts

The most recent developments in the GRI and EFRAG [draft] Standards demand organizations to assess the materiality of their impacts.

Both GRI and EFRAG standards refer to multiple sources of information - quantitative monetary, quantitative non-monetary, and qualitative - to identify and assess impacts. This is the same approach that Datamaran applies using different sources for its assessment.

Datamaran's data-driven approach considers positive and negative, actual and potential, impacts, risks and opportunities. Scale, scope, and likelihood dimensions are "baked in" Datamaran's analysis. For example, scale refers to how "grave" an impact is. An impact may lead to non-compliance to certain mandatory or voluntary regulations, which is a graver impact. Datamaran analyzes regulations and attributes higher evidence of materiality to those subject matters that are addressed by a larger number of mandatory regulations.

Finally, Datamaran analyzes triggers of actual and potential financial effects. This can range from new regulations and policies by financial market institutions to sustainability matters addressed by peers in their financial disclosures.