Double Materiality Assessment
One materiality assessment for all ten ESRS topical standards (E1–E5, S1–S4, G1) – with AI and your team. Every impact, risk and opportunity is recorded once and assessed from both sides: its effect on people and the environment, and its financial effect on your company. The AI suggests IROs from your own data; you decide. Activating the assessment switches on exactly the disclosures your report has to contain.
ONE DMA FOR EVERY TOPIC
One page per topic and reporting period
Climate, pollution, water, biodiversity, circular economy, own workforce, workers in the value chain, affected communities, consumers and business conduct: every topic has the same materiality assessment. The matrix at the top shows every scored IRO; below it sit the standard's sub-topic areas with their status and the table of all impacts, risks and opportunities.
- All ten topical standards E1–E5, S1–S4 and G1 under the same rules
- Materiality matrix of impact and financial scores, exportable as a graphic
- Materiality threshold per reporting period, set separately for impacts and financial effects – default 12.5 on a scale from 0 to 25
- One assessment per topic, reporting period and CSRD reporting boundary
- Table with search and filters by type and outcome
AI SUGGESTIONS
Discover IROs with AI from your own data
Instead of starting with an empty table, the AI reads what you have already recorded in preeco: company profile and sector, sites and their water stress, products and markets, suppliers. From that it suggests up to ten impacts, risks and opportunities, each with the records it is based on. You accept a suggestion, adjust it first or discard it. The AI never scores and never decides materiality.
- Every suggestion names the records it comes from
- No repeats: IROs already recorded, in this or another topic, are not suggested again
- Only data from your own account, no internet search
- Suggestions in the language you work in
- Accepted IROs join the assessment unscored
ASSESSMENT
One record, two sides
An impact and the risk or opportunity it creates are one IRO – not two entries in separate registers. A five-step wizard leads through source, description, impact, financial effect and outcome. Each side is scored under ESRS 1 or decided by written reasoning; time horizon, actual or potential and human rights relevance are recorded per side.
- Severity from scale, scope and irremediable character, with likelihood for potential impacts
- For potential negative human rights impacts, severity alone counts (ESRS 1 §40)
- Financial side from magnitude and likelihood, with risk category and affected financial areas
- Prompt when a single dimension is high (ESRS 1 AR 22)
- Save unfinished IROs and finish them later
OUTCOME
Clear why something is material
Before saving, the last step shows the outcome with both scores against the threshold and what saving does: position on the matrix, effect on the sub-topic area and on the report. Stakeholder engagements are attached to the IRO, together with the stakeholders' feedback. Every change is written to the activity history – ready for your auditors.
- Outcome per side with score and reasoning
- Record stakeholder engagement directly on the IRO
- Check whether affected stakeholders under ESRS 1 AR 23 were consulted
- Archive with a reason instead of deleting, for next year
- Complete activity history
SUB-TOPICS
Every sub-topic area decided
The standard's sub-topic areas appear as cards showing the number of IROs, material IROs, the highest score and what is still to do. An area is material as soon as one of its IROs is material. If an area clearly does not apply to your business, you define it not material with reasoning – the reasoning is kept as evidence.
- Status of every sub-topic area at a glance
- Define not material only with reasoning
- An area with a material IRO cannot be ruled out
- Areas not material are left out of the report with their basis (ESRS 2 IRO-2)
ACTIVATION
Validate, activate, report
The completeness check lists what is still missing before activation and jumps to the right place in one click. Once all blocking checks pass, you activate the DMA: the scores lock and the disclosures of the material sub-topic areas switch on in the topic modules and report generators. If a topic as a whole is not material, activation asks for the basis your report must state under ESRS 2 IRO-2.
- Blocking checks and advisory checks shown separately
- Jump from every open check straight to the fix
- Activation locks the scores and switches on the disclosures
- Revert to draft at any time, logged
- Each topic on its own: climate active, water still in draft
FAQ
Frequently asked questions
Each side of an IRO is assessed with scores or a written justification. The software calculates materiality against the threshold of the reporting period; until you set one, the default of 12.5 out of 25 points applies. Separate thresholds for impacts and financial effects can be set with a justification. Severe negative impacts become material even if the average falls below the threshold.
No. The AI suggests impacts, risks and opportunities from the data you have already recorded, each with a short rationale and in your team's working language. Every suggestion can be reviewed and edited before you accept it; accepted suggestions count as unreviewed and must be checked before activation. The assessment is built with AI and your team, and the decisions are yours.
You maintain stakeholder groups once for the whole company in a shared register – as affected by the business, as users of the sustainability statement, or both. Engagements in all ten materiality assessments select their group from this register and record what came out of them. For each group, a dedicated page shows its engagements and which matters became material.
If a topic is obviously not material given your business model, you record the justification directly in the decision dialogue on the dashboard; it is stored in that topic's materiality assessment. In the report the sections do not simply disappear: sub-topics assessed as not material automatically receive an omission note naming the reason and the underlying decision.
Every material matter from all ten assessments is automatically carried into the strategic response under ESRS 2. There you describe the link to strategy and your response, and for risks and opportunities also the financial effects by time horizon – as a range, or with a justification if you do not give figures. Oversight responsibilities of governing bodies can be linked directly to the material matters.
The scope of the report follows the materiality assessment. When an assessment is activated or revised, the related sections in the disclosure report are added or removed without regenerating the report. You can also create a report before activation; until the decision is made, all topics stay in scope and a notice makes this visible.
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