VERSO Materiality Module – Approach to dual materiality analysis by auditors, audited in accordance with CSRD and IDW standards

Munich – With the launch of a novel AI-supported software module, sustainability pioneer VERSO has been offering ESG managers, consultants and auditors a groundbreaking solution since June 2024 for conducting double materiality analysis (DMA) in accordance with CSRD/ESRS in a legally compliant, audit-proof, comprehensive and time-saving manner. The legal and IDW compliance of the AI-supported approach was confirmed on 18 July 2024 by an independent conformity assessment carried out by IDW Sustainability Auditors, an auditing firm.

Identifying relevant topics according to double materiality is the first step in implementing the Corporate Sustainability Reporting Directive (CSRD), which will require around 50,000 companies in the EU to report on sustainability in the coming years. The AI-supported ‘IRO Assessment’, i.e. the assessment of impacts, risks and opportunities (known as ‘IROs’), forms the core of this process. Based on a proprietary project, research and benchmark database with around 60,000 different parameters and an encapsulated AI engine, customers receive individual, industry- and company-specific suggestions for sustainability impacts at the touch of a button, each with descriptions and potentially relevant stakeholders.

These are then supplemented, evaluated and finally assessed by customers in an intuitive process. The VERSO Materiality Module incorporates experience gained from many years of sustainability and risk management, auditing and more than 250 successful materiality analyses. The Materiality Module is offered and used by VERSO and selected consulting, auditing and technology licensing partners.

Customers of the innovative VERSO Materiality solution have already given consistently positive feedback: the manageability and efficiency of DWA processes are increasing significantly.

The reliability of the AI-supported process approach has now also been certified by IDW-certified auditors. When used properly, it guarantees a proper double materiality analysis. The process shown therefore complies with CSRD requirements and ESRS standards and is thus suitable for supporting companies in their due diligence processes (and thus their audits).

The conformity assessment was carried out in accordance with the international auditing standard ISAE 3000. In addition to the standards for sustainability reporting (ESRS), the assessment is also based on the IDW ESRS module statement IDW FAB 100. The latter serves as a guide for auditors for the uniform interpretation and application of the ESRS.

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