What are the top material sustainability issues for your business?

1 What are material sustainability issues?

Material sustainability issues are those that have a significant influence on your business performance and stakeholder expectations, as well as on the environmental, social, and economic systems that you depend on and affect. They are not static, but change over time as the context, risks, opportunities, and standards evolve. Material sustainability issues can be internal or external, positive or negative, present or future, and cover topics such as climate change, human rights, diversity, waste, innovation, governance, and more.

2 Why are they important?

Identifying and prioritizing your material sustainability issues can help you focus your efforts, resources, and communication on the areas that matter most for your business and stakeholders. By doing so, you can enhance your reputation, trust, and loyalty, reduce your costs and risks, improve your efficiency and innovation, and create value for yourself and society. Moreover, you can align your sustainability strategy with your core purpose and values, and demonstrate your leadership and commitment to the sustainable development goals (SDGs).

3 How to assess them?

To assess your material sustainability issues, you need to conduct a materiality analysis, which is a systematic and stakeholder-informed process that evaluates the importance and relevance of various sustainability topics for your business and society. A materiality analysis typically involves four steps: defining the scope and objectives, identifying and mapping the potential issues, engaging and consulting with your stakeholders, and validating and prioritizing the results. The outcome is usually a materiality matrix that plots the issues according to their significance for your business and stakeholders.

4 How to use them?

Once you have your materiality matrix, you can use it to inform and guide your sustainability strategy, reporting, and action. For instance, it can help you set your sustainability vision, mission, and goals that are aligned with the SDGs and other frameworks. Moreover, it can be used to define your key performance indicators (KPIs) and targets, so that you can measure and monitor your progress and impact. Furthermore, the materiality matrix can be used to communicate your sustainability story and achievements to stakeholders, as well as identify and manage sustainability risks and opportunities. Lastly, it can aid in innovating and collaborating on solutions that create shared value for your business and society.

5 How to update them?

Your material sustainability issues are not static, but constantly changing. Consequently, you must update them regularly to accommodate the shifts in your business environment, stakeholder perspectives, and sustainability standards. To do so, you should review your materiality matrix periodically and adjust it as needed. Additionally, tracking the emerging trends, issues, and best practices in your industry, sector, and society is necessary. Engaging with your stakeholders continuously and soliciting their input and feedback is also essential. Furthermore, evaluating your sustainability performance and impact will help you learn from your successes and failures. Finally, reporting your sustainability results and outcomes as well as seeking external assurance and recognition is important.

6 How to get started?

If you are new to sustainability or want to improve your current practice, here are some tips to help you get started with your materiality analysis and strategy. You should benchmark your sustainability performance and disclosure against peers, competitors, and industry standards. Additionally, it's important to consult with stakeholders and analyze sustainability data. Furthermore, you should prioritize material sustainability issues and use a materiality matrix or other visual tool to present and communicate them. Finally, use the matrix as a basis for your sustainability strategy, reporting, and action, and ensure that it is aligned with your business purpose and values.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?