Materiality Assessment

Get a Materiality Assessment to pinpoint ESG & sustainability issues that affect your organization.

Materiality Assessments

Get a Materiality Assessment to pinpoint ESG & sustainability issues that affect your organization.

What is a Materiality Assessment?

A Materiality Assessment (also called an ESG materiality assessment) is a tool that finds the sustainability and ESG issues that are most important to your organization.

Once a voluntary measure, materiality has moved into the regulatory mainstream for companies. Getting a materiality assessment is an essential first step to building consensus around your sustainability and ESG initiatives, based on your team’s values and company performance.

What determines how the Materiality Assessment is developed?

Your organization’s priorities, industry, stakeholders, and compliance requirements are the driving force behind how your materiality assessment is developed. In the end, the assessment will deliver a clear picture of the ESG issues impacting your organization and the actions to take to drive strategic value.

The Benefits of a Materiality Assessment

Compliance with New Guidelines

Comply with emerging U.S. SEC and European sustainability guidelines including CSRD (the Double Materiality framework)

Clarity on Sustainability & ESG

A concrete, comprehensive definition of what sustainability means for your organization, both in terms of risk and opportunity

Common Vision

Consensus and understanding between departments on issues that impact risk, value and performance

Data-Driven & Comprehensive Research

A comprehensive index of material issues based on internal and external stakeholder data

Our Proven Approach to Materiality Assessments

1. Diligent scoping to identify relevant compliance frameworks and key outcomes

We analyze key business drivers, including key regulatory and disclosure frameworks (e.g. CSRD, GRI, SASB, TCFD). Our research encompasses perspectives from raters and rankers, including MSCI, Refinitiv ESG, and S&P as well as customers, NGOs, local governments, and other stakeholders unique to your business.

2. Assuring compliance with emerging regulatory requirements

If you do business in Europe, or with European customers, you will likely need to comply with the “double materiality” standards set by the European Commission’s Corporate Sustainability Reporting Directive. Under CSRD companies have to report not only on how sustainability issues might create financial risks for the company (financial materiality), but also on the company’s own impacts on people and the environment (impact materiality).

3. Internal & external engagement to measure relative risk and impact

We lead interviews and focus groups with stakeholders in your organization to learn about their awareness and ambitions surrounding sustainability and ESG. Our easy-to-use quantitative surveys provide insights on the relative importance of sustainability issues to employees and identify points of friction, opportunities, and indicators which relate to staff retention and satisfaction. We may also conduct in-depth conversations with external stakeholders such as key suppliers and customers.

4. Develop a Strategic Matrix

Classify material issues into a matrix that weighs each issue based on business value, risk, impact, and stakeholder priority.

5. Provide clear recommendations to address gaps and opportunities

After arriving at a comprehensive accounting of your material issues, fit for compliance with any current or future regulatory requirement, the next step is to tie insight to action. We help your organization build an Action Plan to drive future performance by educating and engaging teams across your business.

More than a matrix – a springboard to good governance, accountability, and action.

Tailored to your organization’s ambition, compliance requirements, budget, and strategic goals, our materiality assessment delivers more than a matrix. It is a springboard to good governance, accountability, and action.

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More than a matrix – a springboard to good governance, accountability, and action.

Tailored to your organization’s ambition, compliance requirements, budget, and strategic goals, our materiality assessment delivers more than a matrix. It is a springboard to good governance, accountability, and action.

Materiality Assessment Case Study: Memorial Sloan Kettering

Long at the forefront of sustainability in the health care sector, Memorial Sloan Kettering Cancer Center (MSK) sought to further elevate sustainability culture across their organization. Their team brought in Third Partners to conduct customized interviews with administrative and professional healthcare staff to determine their perspectives on sustainability. Our research experts also facilitated interviews with key suppliers to include the outlook of external stakeholders. We then crafted and distributed an organization-wide survey. Together, these activities generated qualitative and quantitative insights that informed a materiality assessment and provided a clear mandate for MSK on sustainability issues.

Materiality Assessment FAQ

 “I have been a business unit and marketing leader at two different healthcare supply organizations. In both roles, I knew that sustainable product innovation was an untapped differentiator. But we needed help to walk the talk. I first engaged Third Partners to perform a classic materiality assessment. Their approach was more strategic than the cookie-cutter materiality matrix. They were able to glean unique perspectives directly from our clients and they helped to align our business unit leaders around a common vocabulary. We overcame uncertainty around what sustainability meant to our business and where we should invest.”

— Stephen H., Vice President, Medical Devices & Supplies Company

 “I have been a business unit and marketing leader at two different healthcare supply organizations. In both roles, I knew that sustainable product innovation was an untapped differentiator. But we needed help to walk the talk. I first engaged Third Partners to perform a classic materiality assessment. Their approach was more strategic than the cookie-cutter materiality matrix. They were able to glean unique perspectives directly from our clients and they helped to align our business unit leaders around a common vocabulary. We overcame uncertainty around what sustainability meant to our business and where we should invest.”

— Stephen H., Vice President, Medical Devices & Supplies Company

Contact Third Partners to get started with your organization’s Materiality Assessment

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