Providing Strategic Focus to Address the Most Relevant and Impactful Issues
Materiality assessments encompass two companion concepts: Materiality, which assesses the significance of ESG issues for a company and its stakeholders, with a focus on the impacts of a company’s activities on external factors, and Double Materiality, which recognizes that sustainability issues can have material consequences for both the organization and the external environment. Materiality assessments are utilized to identify and prioritize the most relevant and impactful issues to address in terms of regulatory compliance, stakeholder interests, and community relations, in addition to highlighting key priorities for internal decision-makers, for purposes of reporting, target setting, and strategic planning.
Canopy Edge Engagement Framework: Materiality Assessments
Initiate
- Define purpose and scope
- Introduce materiality matrix
- Screening and preliminary assessment
- Engage stakeholders
Process
- Quantitative and qualitative analysis
- Prioritization of materiality matrix
- Validation and verification
- Finalize material impacts, risks, and opportunities
Outcome
- Assessment report
- Executive presentation
- Stakeholder engagement
- Action plan
- Satisfy regulatory requirements, e.g. CSRD/ESRS