The World Business Council for Sustainable Development (WBCSD) in collaboration with the Erasmus School of Economics release a report diving into current ESG materiality assessment practice including some of the main challenges and opportunities for companies
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Although
stakeholders are asking for robust ESG information, practice in
assessing and reporting on material ESG topics remains varied in the
absence of consensus. This report aims to provide insights and clarity
around the main ESG materiality decisions and challenges based on an
analysis of over 550 company reports, 20 company interviews and existing
guidance and literature.
Set around six challenges and seven
major steps involved in conducting a materiality assessment, the key
takeaways include building understanding around the different
materiality perspectives, transparency in decision-making and using the
assessment to its full potential.
Prof Karen Maas, Impact Centre Erasmus, comments “Materiality
assessment is an important strategic tool for companies to get better
insights in the most relevant topics to reduce their negative impacts
and to enlarge their positive impacts. The insights provided by this
report how to execute a good materiality analysis are an essential help
for companies.”
“ESG impacts and dependencies can have a
material impact on the value creation abilities of companies, but
challenges remain in the management and reporting of pertinent ESG risks
and opportunities. The disclosure of material, decision-useful ESG
information by corporates, and the effective use of this information by
the financial markets, will be key enabler of the transitions towards a
world where over nine billion people are living well within planetary
boundaries.” shared Rodney Irwin, Chief Operating Officer at WBCSD.
full report
wbcsd
© WBCSD - World Business Council for Sustainable Development
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