The industry materiality analysis determines material sustainability topics by industry. Based on the results, topics are included in different variants of the score4more company profile, e.g. in a company industry short profile with few material topics or a long profile with more extensive topics material for the industry. The materiality analysis scope covers

• 11 sustainability (ESG) topics, see topics
• 100 industries, see industries

Double materiality analysis criteria for an industry with

• Financial materiality (outside-in): how sustainability topics affect financial performance of the industry through revenue and cost impacts; materiality evaluation criteria:
  • 5 = Critical: >30% revenue or cost impact; existential risks or transformative opportunities
  • 4 = Significant: 10-30% revenue or cost impact; major opportunities or substantial exposure
  • 3 = Moderate: 5-10% revenue or cost impact; growing markets or increasing regulatory costs
  • 2 = Minor:** 1-5% revenue or cost impact; niche opportunities or indirect effects
  • 1 = Insignificant: <1% revenue or cost impact; minimal financial implications
• Impact materiality (inside-out): how industry operations affect sustainability topics through positive or negative impacts; materiality score definitions: materiality evaluation criteria:
  • 5 = Critical: Top 3 global contributor; severe effects exceeding scientific/social thresholds
  • 4 = Significant: Substantial measurable impacts; major stakeholder concern
  • 3 = Moderate: Relevant with growing importance; measurable but manageable impacts
  • 2 = Minor: 1-5% contribution; indirect value chain effects; localized scope
  • 1 = Insignificant: <1% contribution; minimal connection; no material stakeholder concern

Materiality analysis process

1. Determine overall financial and impact materiality of a topic across all industries (global topic materiality)
2. Analyze financial and impact materiality of a topic for one industry (industry topic materiality)
3. Add financial and impact materiality rationals with industry-specific explanation and quantitative data taken into account regulatory and standards (backed up by 1-2 sources e.g. from scientific journals, international organizations, thinktanks, NGOs, industry organizations, market data provider, etc.)
4. Determine overall materiality score and rank topics for an industry

Materiality score and rank determination by topic:

1. Industry materiality topic score [1..25] = financial materiality [1..5] x impact materiality [1..5]
2. Topic rank [1..11] = rank (industy materiality score [1..25] by topic)

Note: to determine unique ranks in case of equal materiality score by topic, increments of global topic financial and impact materiality score are added to industry financial and impact materiality score leading to incremental differences in overall materiality of a topic and allowing clear rank determination.

The materiality scores and ranks determine later if a topic is included e.g. short and long profiles.