Overview
IFS, the leading Industrial AI provider serving six hard-core industries, including manufacturing, aerospace & defense, energy, and service management, has rapidly advanced its sustainability journey in recent years. In 2022, the company launched its multi-year sustainability strategy with multi-year targets, taking the governance approach of “sustainability embedded” across the business. It published its first annual Sustainability report and factsheet.
To integrate sustainability into its long-term strategy, IFS needed a solution to help identify and prioritize the initiatives that would have the greatest impact. Partnering with Datamaran provided a data-driven approach that leveraged AI to do this while reducing manual workload. With these insights, IFS has been able to confidently pinpoint the Sustainability topics that are most relevant and high impact, shaping strategy and dedicating resources accordingly.
Challenges
Before adopting Datamaran, IFS’s materiality process faced several challenges:
- Subjectivity in materiality assessments: Traditional stakeholder-driven assessments often reflected issues with high public visibility (e.g., climate change), regardless of their direct relevance to IFS’s business.
- Manual processes: Gathering and analyzing stakeholder input was time-consuming and lacked automation.
- Limited insights on risks and opportunities: The earlier approach focused only on topics deemed material, without a deeper assessment of risks and opportunities.
- Evolving requirements: With CSRD on the horizon, IFS needed to strengthen reporting processes, assurance readiness, and internal alignment on sustainability priorities, while keeping abreast of fast-moving regulations.
Solution
IFS adopted Datamaran to introduce objectivity, automation, and deeper insights into priorities. Key requirements included:
- Data-driven double materiality assessment (DMA): Automated analysis provided a more objective view of sustainability topics, removing overreliance on stakeholder subjectivity.
- Stakeholder engagement integration: Datamaran’s built-in survey tool streamlined stakeholder input without requiring external platforms.
- Risk and opportunity insights: Datamaran has enabled IFS to identify and analyze risks and opportunities, laying the foundation for integrating sustainability risks into enterprise risk management.
- Benchmarking and regulatory monitoring: Access to peer disclosures and in-depth insights into evolving regulations in one platform improved reporting quality and efficiency.
- Audit and assurance support: Auditors used Datamaran’s workflow and documentation, smoothing assurance processes and increasing credibility.
Platform Users and Beneficiaries
- Sustainability Team: Direct users of the platform, responsible for reporting, DMA, and regulatory alignment.
- Sustainability Steering Committee & Leadership: Receive regular updates, including assessment findings and regulatory insights, for strategic decision-making.
- Board of Directors: Updated on CSRD and double materiality insights via the CSO’s direct reporting at board meetings.
- Risk & Audit Teams: Integration of insights from Datamaran into the internal risk register and ongoing assessments.
- Employees: Benefit from the company’s enhanced sustainability story, embedded into business strategy.
Impact
Datamaran provided an efficient, evidence-based way for IFS to focus on what matters most, driving closer alignment between sustainability strategy and business objectives while staying ahead of evolving regulation.
- Clarity and objectivity: Replaced subjective stakeholder-driven assessments with data-driven, evidence-based insights.
- Efficiency gains: Use of AI and automation in Datamaran’s platform for Impact, Risk, and Opportunity assessment reduced manual effort, resulting in a 72% productivity gain year-over-year compared to a manual approach.
- Enhanced reporting: Provided structure and credibility for CSRD-aligned sustainability reporting, while tracking other fast-moving regulatory frameworks to help the IFS Sustainability team stay on top of these.
- Assurance readiness: Auditors validated the robustness of the DMA process, with positive feedback and no major concerns.
- Leadership alignment: Datamaran outputs inform board-level discussions and underpin IFS’s 2029 vision.
Results
Success metrics using Datamaran include:
- First double materiality assessment completed with Datamaran, integrated into IFS’s Sustainability report.
- Strengthened assurance processes with data-driven documentation supporting auditor review.
- Provided a solid foundation for updating sustainability KPIs and targets.
- Enabled IFS to clearly understand and prioritize sustainability issues, ensuring strategic focus and efficient resource allocation.
Testimonial
“Datamaran has given us a deeper understanding of our sustainability priorities. It’s an efficient, data-driven way to confidently assess where we can make the most impact, as well as our key risks and opportunities. The platform helps us stay ahead of the curve on fast-moving regulation while allowing the team to focus on strategy development, rather than manual reporting processes."
— Sophie Graham, Chief Sustainability Officer (CSO), IFS