The materiality assessment is a process of identifying the relative impact of a range of environmental, social and governance (ESG) issues on the company’s performance, and categorising those issues into a hierarchy which can then be used to guide strategy and help the organisation provide a complete and accurate accounting of its sustainability to investors.

Aspects that are ‘material’ for a company means that they have a significant impact on the organisation.

In the next video, we will dive deeper into the concept of the materiality assessment.