Materiality Assessment Is an Art, Not a Science: Selecting ESG Topics for Sustainability Reports

Jilde Garst*, Karen Maas, Jeroen Suijs

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

28 Citations (Scopus)
650 Downloads (Pure)

Abstract

Materiality assessments play an important role in helping firms to select the environmental, social, and governance (ESG) topics to include in their sustainability report. This article presents the six main steps of materiality assessments, the methods used, and how the complexity, uncertainty, and evaluative nature of sustainability issues complicate them. This article draws two conclusions: the selected materiality perspective influences how the other steps are conducted, and assessment results should not only focus on selecting win-win scenarios, but also on “tensioned topics,” which indicate material societal impact but lack a business case.

Original languageEnglish
Pages (from-to)64-90
Number of pages27
JournalCalifornia Management Review
Volume65
Issue number1
DOIs
Publication statusPublished - Nov 2022

Bibliographical note

Publisher Copyright:
© The Regents of the University of California 2022.

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