Overview
Every impact, risk, and opportunity (IRO) gets a Materiality Score from 0 to 100. A threshold profile sets the bar that score has to clear to count as material. You choose one profile for impact materiality and one for financial materiality, independently, and you can see the effect of each choice on your results before confirming it.
Key benefits / use cases
Set your materiality bar as an explicit strategic choice instead of guessing at a cutoff
Use a different posture for impact materiality than for financial materiality
See exactly how a profile change affects your results before you confirm it
Where you set your threshold profiles
Threshold profiles are chosen in the Results step, directly beneath the materiality matrix, after scoring is complete. Every assessment starts on the Balanced profile by default, for both impact and financial materiality. You can change either one at any time, and the matrix updates immediately so you can see the effect before confirming.
The five profiles
For each profile, select one threshold from the five options provided. An IRO is material on a given dimension if its score is greater than or equal to the threshold for that dimension.
Comprehensive - 31.6/100
A 1-in-100 chance event at maximum severity clears this bar. Suited to high-scrutiny sectors or a first assessment.Inclusive - 47.3/100
A 1-in-20 chance event at maximum severity clears this bar. Excludes only the most negligible items.Balanced (recommended default) - 56.2/100
A 1-in-10 chance event at maximum severity clears this bar. Grounded in conventional accounting materiality (SEC SAB 99, IAASB ISA 320).Focused - 66.9/100
A 1-in-5 chance event at maximum severity clears this bar. Suited to mature programs prioritizing substantial exposures.Strategic - 74.0/100
A roughly 1-in-3 chance event at maximum severity clears this bar. Suited to executive-level strategic reviews.
A more demanding profile raises the threshold, so fewer IROs clear the bar.
Impact and financial thresholds are set independently
You pick one profile for impact materiality and a separate one for financial materiality. A company can, for example, use Comprehensive for financial materiality while using Focused for impact materiality, reflecting its own risk appetite on each dimension.
💡 Today, one profile applies to the whole assessment per dimension. Setting a different threshold per ESRS topic isn't available yet.
Changing a profile never changes a score
The Materiality Score for each IRO is fixed once you've entered your severity and likelihood inputs. Changing the profile only moves the threshold line, it never recalculates or changes the underlying scores. This is why a score of 65 always means the same thing: what changes is only whether 65 clears the bar you've set.
FAQs
What's the default threshold profile?
Balanced, for both impact and financial materiality. Its threshold number 3 out 5, with a score of 56.2/100 and it is grounded in conventional accounting materiality standards.
Can I use a different profile for impact than for financial materiality?
Yes. The two are chosen independently.
Does changing my profile change my scores?
No. Scores are fixed once you've scored severity and likelihood. Changing the profile only changes the threshold your scores are compared against.
Can I set a different threshold for each ESRS topic?
Not yet. One profile currently applies to the whole assessment, per dimension.