Materiality, in this context, relates to identifying and prioritizing the most relevant sustainability issues, taking into account the effect each issue has on the organization and on its stakeholders.
Traditionally Materiality was defined through the lens of financial reporting. It now includes the disclosure of risks and opportunities posed by sustainability issues affecting environmental, social and governance (ESG) domains that have impacts on corporate performance and on stakeholders in the long term.
- Identification and fair representation of issues
- Development of clear and replicable assessment criteria
- Integrated assessment approach
- Stakeholder outreach and engagement
- Risk and opportunity assessment
- Alignment with reporting standards and frameworks
- Balanced and transparent disclosure of progress and impacts