Materiality Assessment Is an Art, Not a Science: Selecting ESG Topics for Sustainability Reports



Published
Materiality assessments play an important role in helping firms to select the environmental, social, and governance (ESG) topics to include in their sustainability report. This article presents the six main steps of materiality assessments, the methods used, and how the complexity, uncertainty, and evaluative nature of sustainability issues complicate them. This article draws two conclusions: the selected materiality perspective influences how the other steps are conducted, and assessment results should not only focus on selecting win-win scenarios, but also on "tensioned topics," which indicate material societal impact but lack a business case.

Based on the article: "Materiality Assessment Is an Art, Not a Science: Selecting ESG Topics for Sustainability Reports" by Jilde Garst, Karen Maas, and Jeroen Suijs


Read the full article:
https://doi.org/10.1177/00081256221120692

California Management Review
Volume 65, Issue 1 (Fall 2022)
https://cmr.berkeley.edu/browse/issues/65_1/

Video production: David Salisbury
Category
Management
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