Whether novice or leader, companies at all stages of their sustainability journeys face a vast universe of potential issues to focus on — but often possess limited resources to address them. In order to craft a successful ESG program, a company must first prioritize the issues that most impact its business, society, and stakeholders.
Materiality assessments engage key stakeholders to discover which ESG issues are most relevant to a particular business. While many companies continue to view materiality assessments as merely a required reporting exercise conducted every two to three years, if approached strategically, materiality can deliver key insights that catalyze business success.
In this Insights Paper, thinkPARALLAX provides ESG practitioners with strategies for crafting materiality assessments that lead to meaningful results. Engaging stakeholder groups with targeted questions, collaborating across teams, and methodically analyzing data are just a few ways to transform materiality from a requisite box-checking exercise to a key driver of business success. By leveraging an effort already required as part of reporting efforts, companies can better understand impact, risks, and opportunities from all angles. With an aligned, meaningful ESG materiality effort, a company can glean the insights to create a strategic advantage and best position itself for the future.