Conducting an Impact Materiality Assessment

Conducting an Impact Materiality Assessment

The Impact Materiality Assessment adheres to the Double Materiality conceptual guidelines for standard-setting outlined in the European Sustainability Reporting Guidelines by the European Financial Reporting Advisory Group (EFRAG).

A step-by-step guide for your Impact Materiality Assessment

  1. Go through the list of issue(s) defined in the preliminary list and navigate to the materiality of Actual and Potential impacts.

  2. Identify if the impact is Negative or Positive.

  3. Based on your selections, a different set of questions will be surfaced.

    1. For Actual Positive impacts, determine Scale and Scope

    2. For Actual Negative impacts, determine Scale, Scope, Remediability and Impact on Human Rights

    3. For Potential Positive impacts, determine Scale and Scope

    4. For Potential Negative impacts, determine Scale, Scope, Remediability and Impact on Human Rights

  4. Indicate what part of the value chain creates the biggest impact on the environment and society based on the following options. (You can select multiple options.)

    1. Upstream

    2. Direct Operations

    3. Downstream

    4. To be confirmed

  5. Indicate when the impact is going to materialise in terms of timeframes based on the following options.

    1. Short Term

    2. Medium Term

    3. Long Term

    4. To be confirmed.

Empty state of an Impact Materiality Assessment

Example of a set of questions to determine Impact Materiality

How we calculate your Impact Materiality Assessment results

Each option you select in the questionnaire should equal to a numeric value as follows:

  1. Scale of impact

    1. Absolute: 5

    2. High: 4

    3. Medium: 3

    4. Low: 2

    5. Minimal: 1

    6. None: 0

  2. Scope of impact

    1. Global/Total: 5

    2. Widespread: 4

    3. Medium: 3

    4. Concentrated: 2

    5. Limited: 1

    6. None: 0

  3. Remediability

    1. Non-remediable/Irreversible: 5

    2. Very difficult: 4

    3. Difficult: 3

    4. Remediable with effort: 2

    5. Relatively easy: 1

    6. Very easy: 0

All the value(s) will be combined once you have completed the assessment. This will generate a result based on the following formula: 

PreliminaryImpactMateriality = Scale of Impact + Scope of Impact + Irremediability(Optional)

Preliminary Impact Materiality

Material result

>= 12

Critical

Trigger materiality

[10,12)

Significant

Trigger materiality

[8, 10)

Important

Trigger materiality

[5,8)

Informative

< 5

Minimal

Important Note: If Impact on Human Rights is Y, the matter is recommended to be Material, regardless of the scores for Scope, Scale and Irremediability.

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