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:

Companies:

Datamaran’s repository of corporate reports from 9k companies comes from multiple industries and geographies.

All report sources are included:

  • Annual Financial reports: include financial information, including financial statements, management discussions, and forward-looking statements.
  • Annual sustainability reports include information regarding environmental, social, and governance issues, as well as the results of initiatives related to those and future plans.
  • SEC filings (10K): are detailed financial statements and other related information that US-listed companies file to the United States Securities and Exchange Commission. 

Mandatory regulations

    Governments, parliaments, public administrations, and supranational and international entities issue mandatory regulations. These regulations are obligatory for legal entities to comply with and can be legally enforced in court.

    Datamaran collects mainly those regulations that apply to companies, i.e., regulations that establish rights and obligations for legal entities.

    Voluntary initiatives

    Voluntary initiatives can be issued by industry self-regulatory bodies, non-governmental institutions, scientific reports (IPCC and IEA reports), and others. They outline specific actions and strategies that companies can take to capitalize on emerging trends, market demands, and
    create positive change and contribute to societal and environmental improvements.

    News sources

    Datamaran uses Quantexa, one of the largest news databases on the market, to assess media coverage of certain topics.

    The news source represents the voice of the media stakeholders and can indicate emerging issues and trends. It is filtered according to the following criteria:

    • Trusted sources
    • "Business" related articles
    • Articles must mention a Datamaran Ontology topic(s)
    • One of the 9000 companies in the database must appear in the title

    This source is further refined with a machine learning model  specifically trained to detect False Positives and Disambiguity within company mentions

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

    Each of the datapoints from each of the sources mentioned above is then assembled in our scoring algorithm to produce a financial or impact score at the topic level. The individual sources have an individual scoring methodology based on the granularity and complexity of the data collected from that source.

    Reach out to the Implementation & Training team for more detailed explanations about our methodology.