What are the sources included in your Datamaran's double materiality analysis and what is their score methodology

In the table below, you'll have an overview of the sources used in the double materiality analysis (Financial and Impact), their description and the scoring methodology, related parameters in the platform, and weights for each source.



Typology 

Specific source

Scoring methodology

Rationale

Parameters

Dimension

Weight

Reports 

Latest companies' financial reports or 10-Ks, published within the past 3 years.


The financials reports are reports that include a significant amount of financial information including financial statements, management discussions and forward-looking statements.Certain companies publish a single document that contains both financial and non-financial information and clearly state in the report title that the document is “integrated” or indicate that the report is prepared according to the International Integrated Reporting Council (IIRC) Guidelines. Those documents are labeled as Financial reports in our database.


10K are detailed financial statements and other related information that US-listed companies file to the United States Securities and Exchange Commission.

The analysis assesses the level of emphasis  that each company puts on a specific topic in their corporate reports.

The level of emphasis is ranked on a four-level scale: 


High = 3 


Medium = 2


Low = 1


No mention = 0

Companies’  financial reports and 10K disclosures are used as a proxy of what could be relevant for investors and shareholders. 

Industry & peers details from input page.

Financial

25%

Regulations 

Mandatory regulations with sanctions

Mandatory initiatives include binding requirements and sanctions, issued by governments, parliaments, public administration, supranational and international entities. 

An inflation function is applied to each initiative based on the most recent date of its introduction, commencement or update. This function dramatically overweights initiatives from the past 2 years and tails out over the sliding 10-year window. 

Mandatory regulations with sanctions represent those regulations that have financial impacts. 

Regulators details from input page - filter on regulations with a sanction tag (new)

Financial

25%

Standards 

SASB 

Analyzes the total number of SASB unique sub metrics associated with each topic.

As SASB is looking at financial materiality, if an issue corresponds to a SASB metric, it is an indicator that financial markets and investors are interested, as these can have a financial impact. 

Industry/ies from the Industry & peers' input, unless there is no industry in it, takes the combination of industries defined in Policy Maker and Regulators stakeholders.

Financial

25%

Regulations

Voluntary and Conditionally Mandatory initiatives from financial institutions and authorities (Ex, central banks, SEC).

An inflation function is applied to each initiative based on the most recent date of its introduction, commencement or update. This function dramatically overweights initiatives from the past 2 years and tails out over the sliding 10 years window. 

Voluntary and Conditionally Mandatory initiatives from financial institutions and authorities represent what investors and capital markets are looking at and what might evolve into mandatory regulation in the future.

Policy-maker countries from input page will filter a predefined list of issuers (exchanges, financial market regulators).

Financial

25%

Reports

Latest companies' sustainability reports, published within the past years.


Sustainability reports: are reports that include a significant amount of information regarding environmental, social and governance issues as well as results of initiatives related to those and future plans.

The analysis assesses the level of emphasis  that each company puts on a specific topic in their corporate reports.

The level of emphasis is ranked on a four-level scale: 


High = 3 

Medium = 2

Low = 1

No mention = 0

Most recent sustainability reports reflect companies’ disclosure on  ESG issues and serve as a proxy of what could be relevant for all the stakeholders.

Industry & peers details from input page

Impact

33.3%

News

Datamaran uses Quantexa, one of the largest news database available on the market, as a provider for our Newsflow. 

Analyzes articles tagged with the company name and at least one topic that we track - the output will be the number of articles mentioning that company. 

The news represent the voice of the media stakeholders and can indicate emerging issues.

Media details from the input page

Impact

33.3%

Regulations

Voluntary and Conditionally Mandatory initiatives. Voluntary initiatives are not binding, they can be issued by industry self-regulatory bodies, non-governmental institutions and others. They can be issued by industry self-regulatory bodies, non-governmental institutions and others.

An inflation function is applied to each initiative based on the most recent date of its introduction, commencement or update. This function dramatically overweights initiatives from the past 2 years and tails out over the sliding 10 years window. 

Voluntary and Conditionally Mandatory initiatives indicates emerging regulatory issues

Policy-maker details from input page 

Impact

33.3%