[Legacy Double Materiality in Analysis module]
There are two types of visualizations displayed on the Legacy Double Materiality tab of the Analysis module.
The Tornado view presents the results of your data-driven materiality analysis in a tornado graph that compares the financial and impact results for each analysed issue.
In the graph, each score is classified on a scale from low- (very low) to high+ (very high). Each side of the tornado represents the financial and the impact materiality perspectives. Both perspectives use a 0 to 1 scoring system.
The graph allows you to identify issues likely to materially affect your business (financial) and those areas that your business may materially affect (impact).
You are able to see the results ordered by:
- Issue relevance: the overall relevance in your materiality analysis. This is the product of the normalized x and y scores in the materiality analysis.
- Financial materiality: areas more likely to affect your business.
- Impact materiality: areas that your business affects.
- Alphabetically ordered.
The Detailed data view presents a detailed breakdown of the normalized scores of each of the different sources used to calculate the Legacy Double Materiality scores. It allows you to deepen the results of your analysis and sort them by issue name, issue relevance or by source.
For the scoring system, the platform searches for evidence across our data sources. Utilizing Datamaran topics, it evaluates the extent to which they have a financial impact (financial materiality) and an environmental and social impact (impact materiality).
In terms of scoring for financial materiality, the system takes into consideration sources such as:
- Annual financial reports
- Mandatory regulations with sanctions
- Voluntary initiatives, introduced by institutions representing the financial markets, such as stock exchanges and central banks
- SASB accounting metrics - as a proxy for financial markets and investors' priorities
For impact materiality, we take into consideration coverage within:
- Sustainability reports
- Coverage in the news
- Voluntary initiatives and regulations
You can also read more details on the methodology used to analyze each source.
The second visualization is in the "Summary" tab of each issue (from the "Matrix view" tab of the Analysis module).
The data presented here is the same as the data from the tornado graph, but it is highlighted individually and only at the issue level. The scores and the scale assigned to financial materiality and impact materiality reflect the scores from the tornado graph.
If you have started the monitoring process of your materiality analysis, you will also see the dynamic Legacy Double Materiality view. This view allows you to see the issue rank changes in your Double Materiality analysis at the Financial and Impact level, as well as the underlying sources. The rank change is displayed in bolded numbers, and the current rank is the number next by. The green shading indicates issues that have increased in importance, while the orange shading is those that have decreased in importance.
By default, issues are sorted by Issue Relevance. The relevance is the product of the materiality analysis's normalized x and y scores. You can also sort your issues alphabetically.
