A structured Materiality Assessment is the essential foundation for effective sustainability strategies and for setting goals that are relevant to a business and its stakeholders. A structured Materiality Assessment also supports internal communication within an organization and serves as a tool for risk assessment and trend spotting. It is a cornerstone of the most widely recognized reporting frameworks, such as the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) and ISO26000. A materiality assessment should be used as a strategic business and risk assessment tool, with implications beyond corporate responsibility (CR) or sustainability reporting. Leading companies embed sustainability within existing business processes and their overall business strategy.
Organizations face a wide range of topics on which they could report. Relevant topics are those that may reasonably be considered important for reflecting the organization's economic, environmental and social impacts, or influencing the decisions of stakeholders and, therefore, potentially merit inclusion in the report. Materiality is the threshold by which aspects become sufficiently important to be reported.
Materiality can be used for any combination of the following:
Our sustainability experts will guide you through the process of selecting the most material topics for your organization, as well as identifying relevant risks and opportunities for your company.
KPMG professionals can provide the following services to help you develop and implement your ESG Strategy: