Understanding the Sources in the Double Materiality Analysis

[Double Materiality module]

Datamaran's latest version of the data-driven Double Materiality incorporates AI technology to enhance the analysis of various sources, enabling a comprehensive assessment of your company's impacts, risks, and opportunities.

Here's an overview of the sources:

Risks:

  • Risks sections in Annual Financial Reports/ 10k SEC Filings: In their analysis of risks, the company reports play a crucial role in providing valuable insights. We specifically focus on the topics mentioned in the Risk section of Financial Reports and 10K SEC Filings. These provide a comprehensive overview of the potential risks that a company may face.
  • Mandatory regulations with sanctions: These are those regulations that have financial impacts and that are put in place by governing bodies to ensure that companies comply with certain standards and requirements. When a company fails to meet these, they may face penalties or fines, which can have significant financial impacts on their operations. 
  • Online News with negative financial impact, legal highlights, or adverse events: These provide valuable insights into the potential risks and challenges that a company may face.

Opportunities

  • Benchmark landscape gap analysis of Sustainability Reports: We conduct a benchmark analysis of Sustainability Reports, which helps identify gaps and areas for improvement. It also allows us to compare your company's sustainability practices with Peers, industry standards and best practices.
  • Voluntary initiative policies within opportunity topics: These policies provide valuable insights into the potential opportunities that a company may pursue. They outline specific actions and strategies that companies can take to capitalize on emerging trends and market demands. 
  • Positive news about the company and on opportunity topics: By analyzing positive news about the company and on opportunity topics, we can identify areas where companies can capitalize on their strengths and seize opportunities.

 Positive Impacts

  • Voluntary Policies from non-financial market issuers: These policies provide valuable insights into the potential positive impacts that a company can have. They outline specific actions and strategies that companies can undertake to create positive change and contribute to societal and environmental improvements.
  • Media Coverage with positive sentiments: This helps us assess the beneficial effects and outcomes created by the company's actions and initiatives.

Negative Impacts

  • Media Coverage with negative sentiment (excl. legal highlights, financial impact, adverse events): This helps us understand any adverse effects or consequences that may arise from the company's actions or initiatives.

Positive or Negative Impacts

  • Company Reports - Disclosures in Sustainability Reports: By examining these disclosures, we can gain a better understanding of the overall impact of the company's sustainability practices and their contributions to societal and environmental improvements.