ESG Materiality Assessment Step by Step

ensogo supports the process of conducting a materiality assessment with our AI-enabled platform. Identify, prioritize, and manage your organization’s most relevant ESG issues.

Leverage Our ESG Topics Library

ensogo’s library of more than 100 ESG topics allows you to make an easy first pass at potential material issues. Our database includes a comprehensive collection of relevant ESG issues. Each issue is mapped back to the applicable SDG and can easily be mapped to other popular frameworks and regulations.

Survey Your Stakeholders

ensogo facilitates the surveying of internal and external stakeholders, including employees, customers, investors, and community partners. Easily gather feedback to support the identification of material issues. Build trust, gain insights, and ensure your ESG program aligns with your stakeholders’ expectations.

Define and Monitor Issues

Define and track your material issues with ease. Concerned that a non-material issue may be material in the future? Will an upcoming acquisition or divestment impact what’s material to the business? Monitor and adjust your issues as needed in ensogo’s easy-to-use interface.

Benchmark Against Your Peers

ensogo’s ESG-trained, artificial intelligence allows you to see where your material issues stand against your peers. Get industry-specific and actionable insights, recommendations, and comparisons.

Frequently asked questions

What is materiality in sustainability?

Materiality is the evaluation and prioritization of Environmental, Social, and Governance (ESG) factors that significantly impact a company. Factors are assessed for their impact on the company and their importance to its stakeholders. This process helps organizations identify the issues that truly matter in the broader context of sustainable business practices.

Materiality in sustainability includes considerations like climate change, social responsibility, and ethical governance. By understanding and addressing material ESG factors, companies can enhance transparency, build stakeholder trust, and contribute to long-term environmental and societal well- being.

What is double materiality?

Double materiality is a process that evaluates impact and financial materiality. Financial materiality assesses the significance of sustainability factors that affect a company’s financial performance. Impact materiality extends the scope to non-financial aspects, emphasizing the broader societal and environmental impacts of a company’s operations. The results are often displayed in a materiality matrix.

Together, double materiality helps businesses to align business practices with sustainable outcomes which fosters a holistic approach to decision-making and reporting.

How do you conduct a materiality assessment?

There are many paths to a materiality assessment. Some companies conduct materiality assessments in- house, while others rely on external resources like software or consultants. Factors driving the approach include the expertise of those participating in the assessment, their bandwidth, and budget. Consultants are often hired and can offer valuable assistance in ensuring a comprehensive analysis.

Approach aside, the most common steps in a materiality assessment are:

  1. Define the scope
  2. Identify stakeholders
  3. Select potential material topics
  4. Survey stakeholders and analyze feedback
  5. Define and prioritize material topics
  6. Integrate material topics into ESG strategy
  7. Communicate results

Request a demo today to discover how ensogo can help you collect and manage ESG data more efficiently and advance your sustainability initiatives.