Performing Double Materiality Assessment
Last updated on 2024-12-20
Overview
Double materiality assessments (DMA) provide a foundational analysis of your organization's impact on sustainability and consist of impact materiality and financial materiality. By combining these two factors, it is possible to assess which sustainability risks and opportunities are material for your organization and, thus, should be included in your ESG report.
As an ESG Data Collector, you can specify in the DMA report which sustainability topics are relevant for your reporting entity and submit the report. This information will be used to determine the part of the ESRS questionnaire that your organization has to report on.
This article contains the following sections:
Prerequisites
To perform the DMA for an ESG report, please ensure the following:
- You have purchased the Advanced or Professional license package.
- The users that will configure the DMA report are licensed for the user role ESG Data Collector or ESG Master (see Creating and Editing Users for the Lucanet CFO Solution Platform) and are assigned in the master data (see Creating an ESG Report).
Navigating to the DMA Report
To start the DMA report for your reporting entity, navigate to the Double Materiality Assessments workspace and click the reporting entity that you have been assigned to:
View of the 'Double Materiality Assessment' workspace for ESG Data Collectors
Configuring the DMA Report
The DMA report for a reporting entity is a list of sustainability topics containing various standards, sections, and disclosure requirements from the ESRS questionnaire. In the DMA report, these elements correspond to topics, sub-topics, and sub-sub-topics. A DMA report is displayed as follows, for example:
Structure of a DMA report
Activate the check boxes in the columns Impact and Financial to specify whether one or more sustainability topics have an impact materiality, a financial materiality, or both.
The following icons are used:
Icon
Description
- In the case of a topic: The topic including its sub-topics and sub-sub-topics has an impact materiality or financial materiality.
- In the case of a sub-topic: The sub-topic including its sub-sub-topic has an impact materiality or financial materiality.
- In the case of a sub-sub-topic: The sub-sub-topic has an impact materiality or financial materiality.
- In the case of a topic: The topic has at least one sub-topic or sub-sub-topic with an impact materiality or financial materiality and at least one sub-topic or sub-sub-topic without an impact materiality or financial materiality.
- In the case of a sub-topic: The sub-topic has at least one sub-sub-topic with an impact materiality or financial materiality and at least one sub-sub-topic without an impact materiality or financial materiality.
The topic, sub-topic, or sub-sub-topic does not have an impact materiality or financial materiality.
Submitting the DMA Report
Once you have completed the DMA report for your reporting entity, click the Submit button on the top right-hand side of the DMA report page.
You can also navigate to the DMA report in the Double Materiality Assessments workspace and select Submit from the context menu:
Submit DMA report in the Double Materiality Assessment workspace
After the DMA reports have been submitted by all assigned reporting entities, the ESRS questionnaire can be configured. The scope of the ESRS questionnaire and the assignment of reporting entities to specific questionnaire parts will automatically be adapted according to the information obtained from the DMA reports (see Configuring the ESRS Questionnaire).