How can you ensure the relevance of materiality assessments in a rapidly changing world?

Materiality evolves alongside stakeholder agendas, geopolitical realities and policy or government changes. Materiality - or the order of precedence of what is material - also changes regularly, and what your organisation rallies behind depends on what commercial imperative can be realised by engaging or addressing what is material. It’s not static and must be reviewed regularly. As you note a change that impacts your market, your customers or your ability to do business, you need to be able to adapt your stakeholder strategy accordingly.

To ensure materiality assessments remain relevant in a rapidly changing environment, adopt an adaptive strategy by regularly updating assessments to align with industry trends and stakeholder feedback. Incorporate scenario planning, integrate assessments with risk management, and leverage technology for real-time monitoring. Adopt an agile reporting approach, benchmark against industry peers, and include future-oriented metrics. Educate teams on emerging trends, establish an adaptive governance structure, and communicate changes transparently with stakeholders. These measures collectively enhance the agility and relevance of materiality assessments in a dynamic business landscape.

Para garantir a relevância das avaliações de materialidade em um mundo que está sempre mudando, é essencial revisar e atualizar regularmente a matriz de materialidade. Isso envolve acompanhar as tendências emergentes, mudanças nas expectativas dos stakeholders, novas regulamentações e avanços tecnológicos que podem afetar as prioridades de sustentabilidade de uma organização. Realizar essas revisões de forma periódica permite que a organização se adapte e responda proativamente às novas demandas e desafios, mantendo suas estratégias de sustentabilidade alinhadas com os objetivos de longo prazo e as expectativas dos stakeholders.

Highlighting the critical need for physical flow analysis (mass and energy) alongside traditional economic accounting is essential for a comprehensive sustainability evaluation. The Carbon Balance approach in France exemplifies tracking sectoral progress in reducing environmental impacts. This insight underscores the importance of integrating environmental and economic aspects in sustainability assessments. Moreover, accelerating higher education to move beyond awareness to equipping leaders with the necessary tools and methodologies is crucial. This dual focus ensures that decision-makers are well-prepared to incorporate sustainability into strategic planning, reflecting a holistic approach to environmental challenges.

Isso significa estabelecer canais de comunicação abertos e regulares para coletar feedback, entender as preocupações emergentes e identificar novas oportunidades ou riscos. Ao envolver-se continuamente com stakeholders, incluindo clientes, funcionários, fornecedores, comunidades locais e investidores, uma organização pode obter insights valiosos que ajudam a refinar e atualizar sua matriz de materialidade. Esse processo dinâmico assegura que as prioridades de sustentabilidade da organização permaneçam alinhadas com as expectativas externas e internas e com o ambiente operacional em constante evolução.

Stakeholder engagement is crucial for ensuring the accuracy and relevance of a materiality assessment. Engaging stakeholders can provide valuable insights into the sustainability issues that are most important to them and the organization, which can help prioritize sustainability efforts. To engage stakeholders effectively, organizations should identify and prioritize stakeholder groups, develop clear communication strategies, and provide opportunities for feedback and input. Engagement can also help build trust and credibility with external stakeholders, which can contribute to the organization's long-term sustainability. Overall, stakeholder engagement is essential for ensuring the accuracy and relevance of a materiality assessment.

struturas como os Objetivos de Desenvolvimento Sustentável (ODS) da ONU, os Princípios Orientadores sobre Empresas e Direitos Humanos, e as diretrizes da Global Reporting Initiative (GRI) fornecem um conjunto de critérios e expectativas amplamente aceitos para a sustentabilidade corporativa e a responsabilidade social.

Frameworks provide a good starting point but they are by nature not suitable for consistent use for companies. Materiality is unique to each company based on the impact it has across the value chain. There is no universal set of criteria that can be applied. Frameworks can provide a "long list" of topics but any assessment of worth must drill down into the detail of operations and find where real impact lies.

Crie cenários variados baseados em possíveis desenvolvimentos futuros, como mudanças tecnológicas, tendências econômicas, alterações regulatórias e transformações sociais. Esses cenários devem refletir uma gama de possíveis futuros, desde os mais prováveis até os mais disruptivos. Identificar Implicações: Avalie como cada cenário poderia impactar a organização e seus stakeholders. Isso envolve identificar quais questões de sustentabilidade e responsabilidade social podem se tornar mais significativas em cada contexto.

The need for precise, quantified data before scenario analysis is crucial. Moving beyond intuition to a solid empirical foundation ensures that sustainability strategies are evidence-based. Accurate physical data on inputs and outputs before modeling are crucial. Informed decisions require a deep understanding of real environmental and social impacts. Deterministic modeling, identifying correlations and causality, sets the stage for complex but essential systemic analysis. This approach to Corporate Social Responsibility (CSR) for choosing action scenarios emphasizes informed decision-making to minimize negative consequences while maximizing benefits for all stakeholders. => analytical rigor for future uncertainties.

Materiality once established should form the basis of company strategy. Once the impact areas are discovered, this should be translated into an advantage in terms of tackling negative impacts but also leveraging opportunities. Leadership ultimately owns the strategy so must be involved in the materiality process itself but also the resulting delivery.

arantir que a liderança sênior compreenda a importância da sustentabilidade e da responsabilidade social para o sucesso a longo prazo da organização. O comprometimento no topo facilita a integração da sustentabilidade nas estratégias de negócio centrais. A liderança deve estar envolvida na definição de prioridades de materialidade para assegurar que elas estejam alinhadas com a visão e os objetivos estratégicos da empresa. Isso também garante que as decisões estratégicas considerem questões de sustentabilidade. Incluir equipes de diferentes funções (como finanças, operações, marketing, RH, e R&D) no processo de avaliação de materialidade.

There is huge room for error in materiality by taking a generic approach. Any attempt at a one size fits all method won't create any insight of value. Creating an echo chamber by limiting stakeholder engagement or over reliance on frameworks is easy to do but critically dangerous for companies as it does not give a real world view of impact, risk or opportunity.

A static, one-size-fits-all method falls short. Instead, organizations should adopt a dynamic, forward-looking approach that incorporates strategic foresight and continuous monitoring. Engagement with stakeholders shouldn't be superficial but deep and ongoing, drawing on a wide range of scenarios Using existing frameworks and tools is not enough => Organizations must integrate these with strategic thinking that aligns with their unique objectives. This strategic alignment ensures that sustainability efforts are not just reactive but will be proactive to of course to positive societal and environmental impact ( in line with the Paris' Agreement, around 2°C ) but also with the economic strategies of the company

To ensure the relevance of materiality assessments in a rapidly changing world, regularly review and update assessment criteria to reflect evolving stakeholder expectations, industry trends, and emerging sustainability issues. Engage diverse stakeholders for insights on emerging concerns. Stay informed about global sustainability trends, regulatory changes, and technological advancements. Use scenario planning and risk assessment techniques to identify blind spots and ensure agility. Continuously monitor and reassess material issues to maintain the effectiveness of your sustainability strategy.