Impact data company Upright has launched a new double materiality assessment (DMA) tool that provides companies with real-time assessments, offering clarity on key impacts, risks, and opportunities using merely a company URL. Upright offers this tool at no cost, with an option for organisations requiring advanced sustainability reporting assurance to upgrade for access to enterprise-level features.
The concept of “double materiality” is a pivotal aspect introduced by the EU’s Corporate Sustainability Reporting Directive’s (CSRD) European Sustainability Reporting Standards (ESRS). It mandates reporting on both the risks and impact of sustainability issues on an enterprise, as well as the enterprise’s impacts on the environment and society.
According to Upright, the new solution allows users to perform a comprehensive double materiality assessment “in minutes instead of months.” It provides an in-depth analysis across all 80+ ESRS topics, with capabilities to explore the impact and financial materiality of each product and service individually.
Annu Nieminen, Upright Founder & CEO, stated that the initial wave of ESG initiatives assumed sustainability issues would be resolved with increased reporting. However, this approach has proven insufficient, with many sustainability experts spending excessive time on data collection rather than driving change. Nieminen emphasised the need for a faster, more efficient method, utilising traceable, comparable impact data linked to financial risks and opportunities.
The process of creating sustainability assessments with Upright’s solution begins with the user entering a company URL. The tool retrieves product and service information from online sources, aligns this data with global scientific research, public databases, and value chain impacts, and processes it through the DMA framework, which includes hundreds of detailed sustainability questions. Users can then refine the results with company-specific details, such as detailed product information and revenue splits.
For those opting for the upgraded version, additional features include the ability to incorporate extra input data, collaborate with colleagues, benchmark against peers, and translate results into anticipated financial effects.
Upright indicates that this new solution is the first in a series of real-time applications it plans to release, with investor-focused versions currently in development. Nieminen added that the sustainability sector is questioning the assumption that companies are the best source of truth regarding their own impacts, as many impacts occur beyond the company’s immediate operations, across value chains and markets. With advanced technology and human insight, these impacts can be assessed objectively at a granular product and service level, ensuring full comparability across companies and industries.
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