Valuing Impact Materiality Report

The Valuing Impact Materiality Report explores the role of thresholds and benchmarks in materiality assessments under the CSRD and beyond, focusing on usability, comparability, and entity-specificity. Based on a Sprint involving several leading institutions, the report proposes a framework to evaluate threshold-setting methods and their application in decision-making.

Findings include:

• Application in Materiality Judgments: The highest entity-specificity and comparability are achieved by integrating scoring, rating, and valuation approaches with measured data (Type 4 methods).
• Usability Matrix & Integration: Companies must navigate cost-benefit constraints, ensuring the aggregation and disaggregation of impact data while aligning with sustainability reporting obligations.
• Threshold Construction: Different impact drivers require tailored approaches based on maturity levels, including Value Factors and decision-useful thresholds.

Additionally, the connectivity between financial, natural, social, and human capitals underscores the need for structured data governance and sector-specific benchmarks to drive enhanced sustainability performance and long-term value creation.

The Value Balancing Alliance Financial Market Chapter extends its sincere gratitude to all participants for their invaluable contributions and eagerly anticipates the ongoing advancements in how benchmarks and thresholds will continue to shape and elevate sustainability practices and long-term value creation.