Materiality Assessment evaluates how a company determines which ESG issues are significant enough to warrant attention in strategy, risk management and external disclosure. It covers:

• a structured process - stakeholder mapping, interviews/surveys, workshops, peer and standards benchmarking - that identifies and prioritises environmental, social, governance and economic topics;
• application of financial materiality (impact on enterprise value) and/or impact materiality (significance for people and planet), in line with frameworks such as ISSB/IFRS S1 – S2, EU ESRS and GRI;
• use of clear, transparent criteria (scale, scope, probability, stakeholder concern, regulatory trend) to score and rank topics, documented in a materiality matrix or heat map;
• board and executive involvement in validating results and integrating priority topics into strategy, risk registers, KPIs and reporting boundaries;
• periodic refresh cycles that reflect changing stakeholder expectations, emerging risks/opportunities and new regulations, with public disclosure of methodology, participants and outcomes.