How to Conduct a Materiality Assessment

Oct 26, 2023

A materiality assessment identifies the most critical ESG impact and focus areas, along with associated risks and opportunities for the company. Mapping and prioritizing these impact areas should be done in collaboration with various key internal and external stakeholders - such as the such as the management team, key experts in the company, employees, owners, main partners, and customers. 

View EU guidelines for double materiality assessment

Steps for conducting a materiality assessment

  1. List key internal and external stakeholders to be involved in the assessment

Consider for example: ESG or sustainability specialist or team if you have one; investor relations; finance department; top management and board; key partners and customers. 

  1. Have discussions with identified key stakeholders

Consider formats such as interviews, workshops, focus groups, and surveys to understand their perspectives on ESG issues and how they perceive your company's impact. 

  1. Review industry standards, peer performance, and statements (reporting, messages, disclosures), topical legislation, and existing frameworks

Use, for example, SASB (Sustainability Accounting Standards Board) to help determine which sustainability issues might affect financial and operating performance within your industry. 

  1. List material topics for your organisation based on your research

  2. Make a priority list of key impact topics/areas

These are the ESG factors most significant to the company and most relevant to its stakeholders and set key focuses for your ESG agenda and reporting.  

  1. Track and measure

Give your organization a way to track and measure results by agreeing upon key performance indicators (KPIs).