Materiality Assessment in the Context of ESG
(Environmental, Social, and Governance) is a process that helps companies determine which ESG issues are most material and significant to their business and stakeholders. Here are the key steps in the materiality assessment:
IDENTIFYING ESG ISSUES
Gathering a wide range of potential ESG issues that can impact the company and its stakeholders. This includes issues related to the environment, social responsibility, and governance.
STAKEHOLDER CONSULTATION
Conducting a dialogue with internal and external stakeholders to understand their views on the significance of various ESG issues. Stakeholders may include employees, customers, investors, regulatory bodies, non-governmental organizations, and local communities.
IMPACT AND RELEVANCE ANALYSIS
Assessing the extent to which each ESG issue can impact the company’s financial condition, operations, and reputation, as well as its relevance to stakeholders.
PRIORITIZATION
Classifying ESG issues according to their significance and priority. This typically leads to the creation of a materiality matrix that visualizes the issues according to their impact and importance.
INTEGRATION INTO STRATEGY AND REPORTING
Using the results of the materiality assessment to guide the company’s strategic planning and reporting. This includes focusing efforts and resources on the most material ESG issues.
MONITORING AND UPDATING
Regularly reviewing and updating the materiality assessment to reflect changing business conditions and stakeholder interests.
Horizons Bulgaria is a consulting company with 20 years of experience and presence among leading business practices
Our ESG consulting services will support the development of a corporate ESG strategy, action plan, and implementation of changes, monitoring, and automated monitoring through software appropriate for your business. Analysis, reporting, and public sharing of results.