From Reporting to Strategy:
Best Practices in Corporate Materiality
With exclusive insights from:
Learn how industry leaders stay ahead of the curve
The function, use, and role of materiality analysis in business is a constantly shifting one.
Traditionally, materiality has been a field with “no real standards to follow”, in the words of Tjeerd Krumpelman (ABN AMRO). This has led to questions of legitimacy, bias, and transparency - which have combined to block materiality from playing its proper role in the building of wider corporate strategy.“From Materiality to Strategy: Best Practices” brings together a number of ESG experts to discuss how they have overcome each of these concerns to make materiality scientific, transparent, and decision-useful. Based on a series of in-depth interviews, this free ebook explores how major global players have brought materiality beyond reporting.
To get full access to all of the insights in this free ebook, simply fill in the form to the right.
Download “From Materiality to Strategy: Best Practices” to read about:
- How continuous monitoring of material issues is critical to staying on top of emerging risks with Dr. Jutta Kissel, Sustainability Manager at BASF;
- Using technology to implement a more credible and systematic method of conducting reasonable assurance of your ESG data with Simon Braaksma, Senior Director of Sustainability Reporting at Philips
- What you can do to enhance the voice of stakeholders when undertaking materiality analysis featuring Linda Freiner, Group Head of Sustainability at Zurich Insurance;
- The steps you can take in order to improve the efficiency of your materiality analysis leveraging AI with Tjeerd Krumpelman, Head of Business Advisory, Reporting, and Stakeholder Engagement at ABN AMRO;
As we are continuously understanding potential opportunities and risks along our value chain, we can adjust and implement our activities accordingly.”
Dr. Jutta Kissel, Sustainability Manager at BASF
Frequently asked question (FAQs)
Click on each question to learn more.
What is a materiality analysis?
“Materiality analysis” is a process in which a company identifies the environmental, social, governance and broader emerging issues, such as digitalization, innovation, geopolitical events that are most important given the operating context of a business.
A robust materiality analysis provides insights into future trends and business risks and opportunities that influences its ability to create value. It helps companies identify topics that their stakeholders expect them to focus on, and is an essential engagement tool internally.
Why is materiality a crucial business process?
Materiality is a fundamental business process that contextualizes relevant information in the terms of principal business risks and opportunities. Breaking this down, we can isolate the core concepts of materiality.
- First, materiality is a fundamental process - it is both business-critical and ongoing.
- Second, it is contextualizing - allowing companies to place information (for example, information related to ESG issues) in the language of risks and opportunities.
- From these points, we can identify a third trait of materiality, namely that it is an integrating force.
What are the risks of not completing a materiality analysis?
An inadequate or uninformed materiality assessment approach exposes companies to financial, reputational, and legal risks among the others. On the contrary, a robust, data-driven, timely and regular materiality process can highlight all relevant material topics and reveal red flags that can prevent corporate scandals.
How does Artificial Intelligence support materiality?
A company’s approach to materiality needs to be confident yet adaptable, shifting yet comparable, consistent yet flexible. That's where technology-driven data can help.
Artificial Intelligence (AI) allows companies to be proactive in relation to materiality, doing it in an efficient manner without compromising on quality. The ability to track and react to emerging issues as soon as possible is a core metric by which materiality can be judged - and AI can accelerate this process significally.
Datamaran is the global leader in Software as a Service (SaaS) solutions for external risk management.
Datamaran harnesses AI technology to support decision-makers with an improved materiality analysis process – one that seamlessly integrates into Enterprise Risk Management and corporate strategy.
Datamaran’s global clientele of blue-chip companies have replaced the dated and expensive manual processes once used for these business processes - and, in turn, have gained operational efficiencies and a defensible approach.
The insights Datamaran provides enable the integration of multiple business functions. In doing so, Datamaran’s AI-driven software allows forward-thinking business leaders to stay on top of the changing risk landscape.