Materiality plays a key role in corporate social responsibility (CSR) and sustainability programs.
Materiality helps firms define and determine the business, social and environmental topics that matter most to its business and stakeholders, according to Intelex, an environmental, health and safety management software provider. Materiality is also something that 80 percent of the world’s largest 250 companies are already tracking and reporting on as part of their sustainability reporting efforts.
In a blog post, Intelex outlines four simple steps to a materiality assessment that companies should consider when developing a CSR or sustainability program.
- Identify stakeholders
- Identify your indicators
- Conduct a survey
- Ranking matrix
Check out the blog for more information about each step.
Earlier this year the Global Reporting Initiative and investment firm RobecoSAM have published a guide that explores materiality from a sustainability reporter’s perspective, as expounded in GRI reports, and compares this with the investor perspective of materiality, as formulated by RobecoSAM.