Climate first…or last?

AS SUSTAINABILITY disclosures edge towards becoming mandatory in many jurisdictions rather than an optional public relations tool, a critical question arises: How do companies decide what really matters?

The answer lies in a term central to every sustainability report yet often poorly understood: “materiality assessment”.

Materiality assessments are intended to help companies identify the most significant sustainability-related risks and opportunities (SROs) – those that can affect business performance or impact people and the planet. If done well, a materiality assessment should be the backbone of a sustainability strategy. Done poorly, it can mask risks, mislead stakeholders and derail corporate efforts to contribute meaningfully to the climate transition.