• Novisto Materiality brings double materiality assessments, sustainability data and disclosures into one enterprise platform.
• The solution uses GIST Impact’s methodology and AI-powered analysis to score financial and impact materiality.
• Companies can update assessments after acquisitions, regulatory changes or emerging risks instead of relying on static reports.

Novisto digitizes double materiality assessments

Novisto has launched an integrated platform designed to turn double materiality assessments into an ongoing, auditable business process.

Novisto Materiality allows sustainability teams to identify, assess and document material impacts, risks and opportunities within the company’s sustainability management platform. Novisto describes it as the industry’s first on-demand materiality solution fully integrated into a core sustainability platform.

The launch responds to a persistent challenge for corporate sustainability teams. Materiality assessments have traditionally relied on consultant-led projects, stakeholder surveys and manually consolidated data. The result is often a static report that becomes outdated as business conditions change.

Novisto aims to replace that model with a system companies can update when new risks, transactions or reporting requirements emerge.

Regulatory demands raise the stakes

Companies reporting under the European Union’s Corporate Sustainability Reporting Directive are a key audience for the solution. Under the accompanying European Sustainability Reporting Standards, double materiality forms the basis of sustainability reporting.

This approach considers two perspectives. Financial materiality examines how sustainability-related risks and opportunities could affect the business. Impact materiality evaluates how the company affects people and the environment.

Beyond the EU, the concept also has global relevance. The International Sustainability Standards Board focuses on financially material information for investors, while GRI Standards address an organization’s most significant impacts.

Data replaces subjective scoring

Historically, companies have struggled to compare different sustainability issues through a consistent methodology. Emissions, land use, human rights and workforce risks can involve different evidence, time horizons and stakeholder priorities.

Novisto Materiality uses GIST Impact’s science-backed methodology to apply standardized scoring logic to those issues. Guided workflows collect qualitative and quantitative information, while AI-powered analysis generates financial and impact scores for each sustainability topic.

Companies can invite internal and external stakeholders to validate the findings through in-platform surveys. Teams can then review the results and record the reasoning behind each materiality decision.

The platform may also support advisory firms conducting assessments for corporate clients.

“Materiality assessments involve a significant amount of stakeholder input, analysis and judgement,” says Katherine Bruce, ESG Reporting Lead at Emirates Group. “Embedding materiality directly within Novisto will help us maintain a clear connection between those decisions and the resulting disclosures, improving transparency, traceability and consistency throughout the reporting process.”

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From periodic exercise to management tool

Because the assessment sits within Novisto’s broader sustainability platform, companies can move from identifying material issues to preparing disclosures in the same system. That connection could reduce duplicated work and improve data lineage between assessments, reported metrics and narrative disclosures.

Organizations can also rerun an assessment when their risk profile changes. A potential acquisition, divestment, new market entry or regulatory development could trigger an update.

The platform may also support advisory firms conducting assessments for corporate clients.

“Materiality should not be treated as a box to check once every two years,” says Charles Assaf, CEO and Co-Founder of Novisto. “We believe the effectiveness and reliability of ESG and risk programs depend on the integrity of its starting point. This launch reflects our vision of giving organizations the confidence to manage sustainability information with the same discipline as financial information.”

For executives and investors, that discipline is becoming increasingly important. Materiality decisions determine which sustainability issues enter corporate reporting and which risks reach senior management.

As disclosure regimes evolve, companies will need systems that can preserve evidence, explain management judgments and respond to changing conditions. Novisto’s launch reflects a broader move toward embedding sustainability information within the governance infrastructure used to manage enterprise risk worldwide.