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Materiality Assessment

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Elements

A materiality assessment is a strategic process used by organizations to identify, prioritize, and assess environmental, social, governance (ESG), and economic issues that are most significant or "material" to their business and stakeholders. These issues are those that could affect an organization’s ability to create value in the short, medium, and long term.

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Impact materiality looks into the Scale Scope & Remedial character of an Impact, it helps organization to identify and focus on ESG issues that have the most significant effects on their stakeholders and long-term viability

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Double materiality broadens this perspective by looking at both financial and non-financial impacts. It not only considers how external factors (like environmental or social trends) affect a company’s financial health but also how the company’s actions impact the broader environment, society, and economy. This dual focus recognizes that a company’s success is interconnected with societal well-being and ecological sustainability.

Approach

We take into consideration various global frameworks and rating agency requirements such as GRI, SASB, DJSI & EU-CSRD to align with the evolving sustainability landscape.

Double Materiality

Impact Materiality

  • Understanding the Organization Context

  • Identifying significant ESG issues for the organization

  • Analyzing the significance of ESG Material topics

  • Prioritization of Material topics

Financial Materiality

  • Continuation use of resources

  • Reliance of relationships

  • Analyzing Sectoral ESG landscape Vision, and sustainability strategy of organization

  • Incorporating Rating agencies sectoral materiality map (MSCI) , DJSI and sectoral topics (SASB) including standards as GRI, EU-CSRD to identify potential material issues for the business

  • Meaningful leadership discussions to Collate responses from internal stakeholders

  • Collation of responses from External Stakeholders to rate the potential material topics

  • Computation of scores for ranking of ESG impact areas

Process

Materiality in a corporate context refers to identifying the issues that significantly impact a company’s financial performance and long-term value. It involves determining which factors, such as economic, social, or environmental aspects, could influence the decisions of investors and other stakeholders. These issues are considered "material" because they can affect a company’s profitability, reputation, and regulatory compliance

1

Identifying relevant issues

Organizations research and gather potential material issues from internal and external sources, such as sustainability reports, regulations, industry trends, stakeholder feedback, and global sustainability standards.

2

Engaging stakeholders

Stakeholders, including employees, investors, customers, suppliers, NGOs, and regulators, are consulted to understand their views on what issues are most important.

3

Prioritizing material issues

Issues are ranked based on their potential impact on the company’s performance and the level of stakeholder concern. This is usually done using a matrix, where one axis represents the significance to stakeholders, and the other axis represents the impact on the business.

4

Integrating into decision-making

The results of the materiality assessment are used to guide strategic planning, risk management, sustainability reporting, and communication with stakeholders

Impact Materiality

Double Materiality

  • Understanding the Organization Context

  • Identifying significant ESG issues for the organization

  • Analyzing the significance of ESG Material topics

  • Prioritization of Material topics

Financial Materiality

  • Continuation use of resources

  • Reliance of relationships

  • Analyzing Sectoral ESG landscape Vision, and sustainability strategy of organization

  • Incorporating Rating agencies sectoral materiality map (MSCI) , DJSI and sectoral topics (SASB) including standards as GRI, EU-CSRD to identify potential material issues for the business

  • Meaningful leadership discussions to Collate responses from internal stakeholders

  • Collation of responses from External Stakeholders to rate the potential material topics

  • Computation of scores for ranking of ESG impact areas

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