Materiality assessment

A materiality assessment is a process used to identify and prioritize key environmental and social issues that are most relevant to a business. These issues are critical either due to the company’s reliance on them or because of the significant impact or interaction between the business and those issues. For example, a paper company would focus on deforestation. This tool helps organizations direct their sustainability efforts and resources towards the most important environmental and social concerns for both the company and its stakeholders, improving decision-making and risk management.