Materiality Assessment

A materiality assessment is the process of identifying and prioritizing the ESG issues that are most significant to an organization and its stakeholders. It helps focus reporting and strategy on what matters most.

Typical Process

1. Identify potential ESG topics (from standards, peers, media)
2. Engage stakeholders (surveys, interviews, workshops)
3. Assess significance (impact severity and likelihood)
4. Create materiality matrix (importance to stakeholders vs. business)
5. Validate and prioritize topics
6. Report on material topics in sustainability disclosures

Related Terms