Materiality Assessment

A materiality assessment is a process used by organisations to identify and prioritise the environmental, social, and governance (ESG) topics that are most significant to their business and stakeholders. Under the EU CSRD and European Sustainability Reporting Standards (ESRS), companies must conduct a double materiality assessment - evaluating both how sustainability issues affect the company financially (financial materiality) and how the company impacts people and the environment (impact materiality).