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Decide on undecided topics

Goal

Turn every undecided result into a documented decision that your governance body signs off.

Introduction​

The calculation gives a verdict, but materiality is your decision. Subtopics in the undecided band, from the threshold minus the margin up to the threshold, need a considered call: material or not. The margin is 0.5 by default and is set per assessment; with a margin of 0 there are no undecided subtopics. The same applies when you want to deviate from the calculation elsewhere, for example to keep a topic material because of a contractual commitment even though stakeholders scored it low.

Karomia keeps the two apart: the calculation is what the numbers say; the conclusion is what you decide. Both appear in your report.

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A subtopic in the undecided band with its calculation, the conclusion control and the rationale field.

Steps​

Step 1: Review the undecided subtopics one by one​

For each one, look at:

  • the IROs that carry the score and the groups that scored them,
  • the comments,
  • the AI view and the sources,
  • external signals: regulation, customer requirements, your strategy.

Decide at subtopic level. A topic is material when at least one of its subtopics is. Under the simplified ESRS you report on the material subtopics only, so a precise decision at subtopic level saves you work in your sustainability report.

Step 2: Record the conclusion and the rationale​

Set the conclusion to material or not material and write the rationale. A few sentences are enough: what the calculation said, what you decided and why. This text goes into your DMA report.

Coming soon

Setting the conclusion and its rationale in the platform is part of the results step rework. Until then, record your decisions in the discussion section of the Word report and tell us through the chat so we align the platform.

Step 3: Err on the safe side​

Promoting a topic to material that the calculation called not material is easy to defend: you do more than required. Demoting a topic the calculation called material means overriding your stakeholders and invites challenge. When you do it, make sure the rationale is solid.

Step 4: Get sign-off​

Present the results and your decisions to the body responsible for sustainability. Send a pre-read with the draft report, hold the session, keep the minutes. That record is what an auditor will ask for first; see How to prepare for the audit.

Do not touch​

Do not re-score answers, delete responses or change weights to move a topic across the line. Decide, document and move on. Your audit trail is worth more than a tidy matrix.

Output​

  • A documented conclusion, material or not material, for every subtopic, including the ones the calculation left undecided.
  • The rationale behind each decision, which goes straight into the Discussion section of your DMA report.
  • Sign-off by your governance body, with the pre-read and the minutes kept as evidence.

Next: Review your DMA report.