Our Methodology

At CUBOS, our DMA methodology is designed to be flexible and framework-neutral, allowing us to adapt to any mandatory standard or voluntary framework. We help firms pinpoint their most material ESG issues by combining robust analysis with practical insights, supporting credible action and long-term value creation.

1. Baseline Mapping

We begin with a sector and value chain-specific review to identify ESG hotspots and data gaps. This may include a semi-quantitative Life Cycle Assessment (LCA) to determine upstream and downstream risks, socioenvironmental impacts, and resource inefficiencies.

2. Topic Scoping

We apply a top-down lens based on the nature of the business, strategy, and sectoral context, aligned with key mandatory standards and voluntary frameworks.

In parallel, we use a bottom-up approach engaging internal and external stakeholders to validate and refine the material topics.

3. Double Materiality Assessment (DMA)

Each ESG topic is evaluated for:

  • Impact Materiality: How the firm and its operations affect people and planet.

  • Financial Materiality: How ESG factors impact the business.

Topics are assessed for severity and likelihood using both qualitative and quantitative indicators, including regulatory exposure, sector dynamics, country risk, and operational dependencies.

4. Severity-Likelihood Matrix

Topics are mapped in a matrix that filters for country and commodity risk, and ranks severity by factors such as spend, environmental footprint, supply chain operations, and irremediability. This ensures prioritisation based on real or potential risks and opportunities. Expert insights and available data further refine this analysis.

5. Risk and Opportunity Mapping

We identify ESG-related risks and opportunities using a mix of literature, country risk datasets, and primary data from stakeholders or supply chain actors. Solutions include top-down governance enforcement or collaborative value chain engagement to address key thresholds.

6. Thresholds and IRO Strategy Development

We translate material topics into actionable qualitative and quantitative thresholds, supporting integration across sourcing, compliance, innovation, and brand strategy. This enables goal-setting and resource allocation around key Impacts, Risks, and Opportunities (IROs).

7. Documentation and Alignment

We deliver a robust, audit-ready report that includes:

  • Scope and methodology

  • Reference to standards, such as ESRS, GRI, and SBTN

  • Country and sector risk insights

  • Crosswalk tables for reporting and internal governance

This ensures alignment across CSRD, B-Corp, and other mandatory and voluntary frameworks.