Calculate Results
Once data collection is complete, Karomia calculates materiality scores for each IRO. This page explains how the calculation works.
Score formulas
Each IRO type has its own subscore formula based on the dimensions stakeholders scored:
| IRO type | Formula |
|---|---|
| Positive impact | Likelihood × (Scale + Scope) ÷ 2 |
| Negative impact | Likelihood × (Scale + Scope + Irremediability) ÷ 2 |
| Financial opportunity | Likelihood × Magnitude |
| Financial risk | Likelihood × Magnitude |
Weighting layers
Four layers of weighting are applied before the final materiality score is produced:
1. Expertise weight
Respondents declare their expertise level for each topic. Higher expertise gives their scores more influence:
| Expertise level | Weight |
|---|---|
| Low | ×1 |
| Medium | ×2 |
| High | ×3 |
2. Data collection method weight
Responses collected through more intensive methods carry more weight:
| Method | Weight |
|---|---|
| Survey | ×1 |
| Interview | ×3 |
| Focus group | ×6 × number of participants |
For focus groups, it is important to log every participant — including those who do not share an email — so the participant count is accurate for the calculation.
3. Stakeholder group topic weight
The weight you assigned to each stakeholder group for each topic (Low/Normal/High) is applied:
| Weight level | Multiplier |
|---|---|
| Low | ×1 |
| Normal | ×3 |
| High | ×6 |
4. Normalization
After weighting, scores are normalized using min-max normalization so that all topics are expressed on a comparable scale regardless of how many responses were collected for each.
Positive and negative impacts
Positive impacts and negative impacts are scored and calculated independently. A high positive impact score does not offset or reduce a high negative impact score — they represent different materiality dimensions.
Per-subtopic aggregation
For each ESRS subtopic, Karomia takes the highest-scoring IRO of each type (positive impact, negative impact, financial opportunity, financial risk) to represent the subtopic's materiality score. Individual IRO scores do not average out — the strongest signal within a subtopic determines its score.
