Materiality is an important cornerstone of an effective sustainability strategy and one of the most important pillar of SASB and GRI disclosure frameworks. Determining the materiality of sustainability issues is a key step in identification of risks and available opportunities to be addressed by the organization.
Assessment of material issues helps corporate leaders to develop a sound and actionable ESG strategy that maximizes returns. The focus helps in concentrating company’s resources, tactics, training and team-building in alignment with the issues that matter the most.
Without an effective materiality assessment process (and mapping) leaders waste time, resources and money on issues that not only provide little or no benefit in sustainability reporting, but also confuse the company’s stakeholders’ analysis.
Guidance on identification of key issues and stakeholder groups. Specify and cluster your internal and external stakeholders based on their business approach for sampling.
Manage survey through a guided & interactive process. Launch survey campaign and balance control of submission with interactivity between stakeholders while maintaining a closed loop.
Customize survey questionnaire from templates on performance, supply chain, energy, emissions, water, waste management, materials, diversity, human rights and more
Analysis and Presentation
Visual analytics tools allow analysis and presentation of material input, output, process, outcome and context KPIs. Bring out the insights from materiality assessment through powerful charts.
Key Steps for Materiality Assessment
Materiality Assessment exercise for risk identification and assessment, typically is conducted in the following four steps:
- Issue identification: a comprehensive list of issues is identified based on peer approach analysis, review of communications, performance rankings and other sources. From the list, significant issues are identified for further analysis.
- Assessment of stakeholder concerns: Stakeholder groups are identified and their concerns regarding sustainability challenges are assessed through dialogue.
- Assessment of impact: The magnitude and likelihood of the identified risk issues is assessed based on the risk analysis tools and experts.
- Presentation: The results are captured and presented in form of a materiality matrix
Materiality assessment is an exercise of identifying material economic, environmental, social and governance issues, of substantive importance for its stakeholders or have a significant impact on the company’s business performance.
Materiality assessment is situation and party specific. What is important to the individual stakeholder or group of stakeholders may vary from the company’s internal view of materiality regarding issues that matter to each party.
Materiality matrix is a visual representation of significance and impact of key sustainability issues concering the reporting company. The matrix typically plots ESG issues in two dimensions: the importance of the issue to stakeholders and the importance of the issue to the company.