Materiality Assessment

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Materiality Assessment

A materiality assessment is a process undertaken by organizations to identify and prioritize the environmental, social, and governance (ESG) issues that are most significant or material to their business and stakeholders. The world is facing global challenges such as climate change, resource depletion, and social inequalities.

Companies are being called upon to play a role in addressing these challenges. Materiality assessments help organizations understand how they can contribute to sustainable development goals and be part of the solution.

The GRI's guidelines - particularly the G4 version and subsequent iterations, emphasize the importance of materiality in sustainability reporting.
The International Integrated Reporting Framework - promotes the integration of financial and non-financial information in corporate reporting.
The Sustainability Accounting Standards Board (SASB) - provides industry-specific standards for disclosing financially material ESG information to investors.

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