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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:

  • To support the development of a vision and strategy on CSR and to identify the risks and opportunities related to CSR.
  • To generate content for the CSR report in accordance with global standards and to identify strategies and initiatives to capitalize on CSR.
  • To facilitate high-level communication about the most material topics inside and outside of the organization.
  • To identify new assumptions and trends that may become relevant to the company in the future and prepare for new expectations from stakeholders.

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. 

Materiality analysis

Materiality analysis

How we can help

KPMG professionals can provide the following services to help you develop and implement your ESG Strategy:

  • ESG risk management: Identifying and mapping of an organization’s ESG-related current and emerging risks and material topics. Providing assistance in managing these risks and opportunities. Implementing an appropriate governance model enabling organizations to build a sustainable business in the long term.
  • Materiality assessment workshop: Facilitate and prepare a structured internal Materiality assessment workshop with key representatives of the company, supported by knowledge tools and experiences. The result will be a comprehensive materiality matrix comprising all materials topics, serving as the basis for the company’s Sustainability Strategy, aligned with its overall business strategy.
  • Materiality assessment benchmark analysis: A peer analysis and desk research will be used to prepare and facilitate an external benchmark materiality assessment to understand the relevant sustainability aspects and ambitions of the company. The analysis will serve as a critical assessment and benchmark of the existing analysis of the company, which will focus on providing guidance by sharing our insight and experiences from other companies. This external benchmark analysis can also be combined with the internal Materiality assessment workshop, providing external views and insights, thereby resulting in an integrated materiality matrix.
  • Stakeholder engagement: Provide assistance and guidance in prioritizing and mapping stakeholders, developing stakeholder surveys and interviewing key stakeholders, as well as capturing and processing the results of the stakeholder engagement and integrating it into the materiality assessment.
  • CSR Roadmap: Development of a roadmap for future actions, including improvement observations. We will accompany management in its development of this general roadmap on the way forward. This entails a visible evolution from efforts, which will enable the company to decide on what targets to achieve, who will be responsible and by when. We will provide recommendations regarding the sustainability strategy and reporting.

Explore more on your sustainability journey