Materiality analysis is a process that helps identify and prioritise the most relevant or significant issues for sustainable management. It has elements in common with context and stakeholder analysis. Materiality analysis considers both the interests of stakeholders and the impact that issues have on the company and society in general.
The objective of materiality analysis is to focus on issues that can influence the ability to generate long-term value, such as climate change, labour rights, or resource management. Materiality analysis guides decision-making and communication of the sustainability strategy.
Materiality analysis is a requirement for social responsibility certificates and reports. The most common are:
- IQNet SR10 – Certified corporate social responsibility
- SGE21 Forética – Ethical and sustainable management.
- Ecovadis and SMETA for sustainability and social responsibility.
- GRI or CSRD sustainability report
Steps for conducting a materiality analysis
The objective of materiality analysis is to identify the relevant sustainability issues that the company must manage in order to be sustainable in the long term.
- Identification of relevant issues based on their influence and importance in the decision-making of internal and external stakeholders.
– Market research, consulting upcoming sustainability reports.
– Development of surveys, meetings and other consultation tools for different stakeholder groups.
2. Prioritisation of issues to be incorporated into the sustainability strategy.
– Analysis of issues based on the importance of their economic, social and environmental impacts, and influence on stakeholder decision-making.
– Use of the Materiality Matrix for analysis.
– Selection of 5-10 most relevant issues.
3. Validation of aspects
Determination of specific content to be included in the sustainability report, taking into account the scope, coverage and time frame.
4. Evaluation of indicators
– Determination of relevant economic, social and environmental indicators.
– Analysis of results in order to identify areas for improvement.
– Identification of areas where stakeholder expectations are not being met and establishment of performance objectives
Once the materiality analysis has been carried out, the relevant issues must be established in order to set CSR objectives for continuous improvement.