Sustainability materiality involves determining and prioritizing the economic, environmental, social, and governance issues that are most relevant and impactful to an organization and its stakeholders. This assessment can influence a company’s sustainability strategy and is often disclosed as well in sustainability reports.
The main purpose of conducting a sustainability materiality assessment is to ensure that an organization focuses its efforts and resources on the sustainability issues that are most critical to its operations and stakeholders. This helps integrate sustainability into core business strategies by highlighting areas that offer the greatest potential for impact and guiding businesses in setting goals and performance measures.
Materiality assessments also aid in identifying and mitigating sustainability risks that could affect the organization's reputation, legal compliance, and operational efficiency. This also helps strengthen relationships with key stakeholders by addressing their concerns and expectations regarding sustainability.
Materiality is used to determine which environmental, social, and governance (ESG) issues are significant enough to warrant attention and disclosure based on their potential impact on the company and its stakeholders.
On the other hand, double materiality considers both the financial implications of sustainability and ESG on a business and the impact the organization has towards the environment and society.
Keslio is an international sustainability advisory that helps companies and investors navigate their sustainability journey. We support our clients through various services, such as strategy development and implementation, reporting and communications, and greenhouse gas emissions calculations.
We’re passionate about supporting business leaders and their companies with sustainability and ESG and we’d love to help you. To talk to us and find out what Keslio can do for you, please use the section below to contact us, or email us at hello@keslio.com.
