July 15: Let's Talk About Scope 3: How It Works, and How to Make it Work For You
Materiality Assessment
"Our materiality assessment involved the input of 25 different stakeholders on a wide variety of ESG topics. Our results showed that air pollution is the most pressing issue for our company at this point in time."
Definition
An inclusive exercise where companies engage with stakeholders to identify the most significant ESG factors relevant to them. This process recognizes all key stakeholders to the company, such as investors, customers, employees, communities, ESG rating agencies, regulatory bodies, among others. Companies then compile material topics relevant to each stakeholder group and prioritize them based on their potential impact on the company's long-term performance and reputation.
Related terms
