Climate first…or last?
A new study on sustainability reporting across Asia-Pacific finds that in many cases, companies disclose long lists of ESG risks without truly understanding which ones are strategic, financially material or reflective of stakeholder concerns
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.
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