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← Back to Insights Worked example · DMA · 2026

Double Materiality Assessment — AI potential, assessed

Eight sub-tasks, four perspectives, one recommendation per step. The five-stage methodology applied to a concrete workflow.

Medium-to-high · 50–65 % time saved
Aggregate across all eight sub-tasks, assuming an established methodology and clean operationalisation.

The DMA is the hardest piece of the CSRD workflow — and at the same time the biggest opportunity for AI support. This assessment breaks it down into eight sub-tasks and runs each one through the full methodology (Stages 0–4). The point is to land on a differentiated recommendation per task, not a blanket "DMA number".


Per-sub-task assessment

T1
Context analysis · business model, value chain, regulatory framing
AI as Consultant50–70 % time saved
T2
High-level topic screening · pre-relevance check across the ESRS topic list
AI as Collaborator65–80 % time saved
T3
IRO identification · impacts, risks, opportunities per topic field
AI as Consultant50–70 % time saved
T4
Threshold setting · calibrate materiality thresholds per IRO type
AI as Tool30–50 % time saved
T5
Initial scoring · score IROs along scale × scope × remediability
AI as Consultant50–70 % time saved
T6
SME review · subject-matter expert validation of the initial scoring
AI as Tool30–50 % time saved
T7
Stakeholder validation · external stakeholder consultation
Human only0 % time saved
T8
Board presentation · top-level conclusions & decision memo
Human only0 % time saved
Aggregate across all eight tasks: medium-to-high · 50–65 % time saved (weighted by typical effort across the workflow).

Stage 0 — operationalisation per sub-task

Before the assessment runs, every sub-task gets a concrete setup: which inputs feed it, which rubric structures the work, which tools come in, what shape the output takes, what gets reviewed and how.

For context analysis, for example: the inputs are the current annual report, the org chart, a list of sites, and the sector profile. An LLM works them against the EFRAG IG 1 checklist. The output is a structured context note — the foundation for the topic screening that follows.

Each of the eight sub-tasks gets the same treatment before scoring. Skip it — go in with intuitive AI use and no defined setup — and the savings drop sharply while the error risk climbs.


Model capabilities — Stage 2

Scored against today's frontier models (Claude / GPT / Gemini, 2026).

CAPAB coverage
~75 %

Strong:

Weak:


Deployment readiness — Stage 3

Default — mid-sized company with a compact sustainability function
~65 %

The default reflects a typical setup: documents are digital, an ERP/DMS is in place, the sustainability team is 1–3 people, and IT has a clear EU-cloud policy.

What the client needs to bring:

For more mature setups — an in-house LLM-ops team, established ground-truth pipelines, a dedicated assurance function — readiness rises to 85–90 %, and the recommendations rise with it.


Governance — Stage 4

Governance sets the controls that AI use brings with it — independently of whether the task is technically automatable.

What matters most for the DMA:

Less critical here:

Recommended controls:

  1. Four-eyes review on every materiality decision and threshold — a second qualified person signs off.
  2. Method documentation covering model version, inputs, prompts, and reviewer decision per step — the basis for reperformance by the assurance provider.
  3. DPA + EU cloud setup for any personal data from stakeholders (GDPR Art. 28).

Where to go from here

Three takeaways from the DMA as a workflow.

The lever sits in the AI-friendly middle. T2 (topic screening) and T3 (IRO identification) usually account for 30–40 % of total effort, and they're exactly where the 65–80 % and 50–70 % savings live. A lean pipeline for those two tasks pays off more than any attempt to "automate" T7 or T8.

Stage 0 is the condition, not the consequence. The ranges above don't hold for casual chat use. They assume inputs, rubric, tools, and review are defined per sub-task — and that setup work is what a first diagnostic engagement covers.

Stage 4 is binding, not optional. T7 and T8 stay human-only by design. That isn't a weakness of the methodology — it's a property of the task. Negotiation, mediation, and non-delegable accountability are activities of a different kind.

Caveat: the time-saved figures all assume professional operationalisation per sub-task. Without a clean Stage 0 (inputs, rubric, tools, output, review), they drop sharply — typically to 0–30 %, with the error risk climbing.

The methodology in detail

View the full methodology →

The assessment framework used here (5 stages, 42 dimensions, 41 institutions) is documented on the methodology page — including Stage 0 operationalisation, the full source matrix, and the recommendation logic on the autonomy scale.

Get an assessment for your own context

This walk-through reflects a typical client. For your real situation — your data setup, your workflows, your assurance requirements — you'd want a tailored read. 3 weeks of diagnostic work, fixed price, no lock-in.