What's your process for prioritizing material issues?

1 Define your purpose and scope

The first step in your materiality process is to clarify why and how you want to assess your material issues. What are your objectives and expectations? Who are your target audiences and decision-makers? How will you use the results to inform your strategy, actions and communication? You also need to define the scope and boundaries of your analysis. What are the relevant aspects of your business activities, value chain and stakeholders? What are the time frames and geographical areas you want to cover? By answering these questions, you will set the direction and criteria for your materiality process.

2 Identify potential issues

The next step is to generate a long list of potential issues that could be material for your business and stakeholders. You can use various sources and methods to collect and organize this information, such as desk research, benchmarking, interviews, surveys, workshops, media analysis and stakeholder engagement. You should aim to cover a wide range of ESG topics that reflect the economic, environmental and social impacts of your business, as well as the interests and concerns of your stakeholders. You can also refer to existing frameworks and standards, such as the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB) or the International Integrated Reporting Council (IIRC), to help you identify relevant issues.

3 Assess and prioritize issues

The third step is to evaluate and rank the issues based on their significance and influence. Significance refers to the extent to which an issue affects your business performance, risks and opportunities, as well as your stakeholder expectations, needs and preferences. Influence refers to the degree to which you can control or influence an issue, as well as the potential for positive or negative outcomes. You can use various tools and techniques to assess and prioritize issues, such as matrices, scoring systems, weighting factors, algorithms or expert judgment. You should also involve your internal and external stakeholders in this process, to ensure their views and feedback are considered and validated.

4 Validate and review issues

The fourth step is to check and confirm the results of your materiality analysis, and to make any adjustments or refinements as needed. You should verify that your material issues are consistent with your purpose and scope, and that they reflect the most current and accurate information available. You should also ensure that your material issues are aligned with your vision, mission, values and goals, as well as with the expectations and requirements of your stakeholders and regulators. You should also review your material issues periodically, to monitor any changes or trends that could affect their relevance or priority.

5 Communicate and disclose issues

The final step is to communicate and disclose your material issues to your internal and external stakeholders, and to demonstrate how you are managing and addressing them. You should use clear and concise language, and provide evidence and examples to support your claims and commitments. You should also use appropriate channels and formats, such as reports, websites, presentations, newsletters or social media, to reach and engage your target audiences. You should also follow the principles and guidelines of recognized reporting frameworks and standards, such as the GRI, the SASB or the IIRC, to ensure the quality and credibility of your communication and disclosure.

By following this process, you will be able to identify and prioritize your material issues in a systematic and transparent way, and to use them as a basis for your corporate sustainability strategy and reporting. You will also be able to enhance your reputation and trust among your stakeholders, and to create value for your business and society.

6 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?