As companies become increasingly aware of the importance of Environmental, Social, and Governance (ESG) issues, materiality assessments have become a crucial tool for identifying and prioritizing the most significant ESG risks and opportunities. Materiality assessments are structured processes designed to involve stakeholders and ascertain the level of importance of particular ESG issues. The insights acquired through this process can then be used to direct strategy and communication, and enable organizations to articulate a more impactful sustainability narrative.
To ensure a robust materiality assessment, it is crucial to adopt a rigorous process that includes engaging with stakeholders and following all nine principles of the BRSR which encompass areas such as climate change, labor practices, and human rights. Out suggestions to have a robust materiality
For example, Infosys, a leading global provider of consulting, technology, and outsourcing services, has incorporated ESG considerations into its business strategy and operations. Through its materiality assessment process, Infosys has identified the following ESG issues as most material to its business: climate change and energy efficiency, data privacy and cybersecurity, responsible sourcing and procurement, and employee well being and diversity. Infosys has set targets and strategies to a address these issues, including reducing its per-employee carbon footprint by 50% by 2030 and achieving 15% diversity in its workforce by 2025.
Another example is Tata Motors, where through its materiality assessment process, Tata Motors has identified the following ESG issues as most material to its business: climate change and greenhouse gas emissions, product safety and quality, labor practices and human rights, and supply chain sustainability.
To get a real insight into developing robust materiality assessment is, please feel free to reach out to Blue Sky Sustainable Business here (Contact us)