What is an ESG Materiality Assessment?
An ESG Materiality Assessment is a process companies go through in order to identify and prioritize their most pressing ESG issues. The process involves surveying both internal and external stakeholders and mapping their results onto a Materiality Matrix. This makes it clear which ESG issues should be acted on now and which should be managed and monitored next.
ESG stands for ‘Environmental, Social and Governance’. Traditionally, investors would rely on financial data to determine the suitability of a company for investment. Today however, ESG metrics are also being used to assess the responsible values of an organization, its long-term prospects, and investment viability. These criteria relate to sustainability, community, and the responsible administration of the organization.
ESG disclosure and reporting is becoming increasingly important for corporations, from both a regulatory standpoint as well as a means to improve their positive impact on people, planet and society, and generate more long-term value for their business.
Learn more: What is a Materiality Assessment?
Why have I been asked to complete this survey?
The organization that sent you the invitation has identified you as a key stakeholder. This means your input is invaluable in helping them identify the ESG issues that matter most within their organization’s microenvironment.
Your engagement with the Materiality Assessment survey will allow them to gain a deeper understanding of which environmental, social and governance issues you deem are most important, with respect to the organization, so that they can create a sustainability strategy and action plan for their business that aligns with stakeholder expectations.
Why is this important to the organization?
The organization is completing this Materiality Assessment with help from their internal and external stakeholders because they recognize the importance of transparency and accountability. Your contribution will be crucial to helping them design a comprehensive roadmap for their ESG strategy and make meaningful progress towards their organizational sustainability goals.
Interested in running your own Materiality Assessment?
Sign up for your own Materiality Assessment to start identifying and prioritizing your organization’s critical ESG issues today. Get started for free here.