Materiality Assessment

Materiality assessment: the first step to identify ESG priorities

Material issues refer to ESG issues that have a significant impact on or will have a significant impact on the enterprise. For enterprises, ESG (or sustainable development) covers a wide range of topics. Conducting materiality assessment is the first step for enterprises to clarify their ESG key areas, and also the basis for realizing ESG information disclosure and strategy formulation.

Materiality is the basic principle of corporate information disclosure in important ESG regulations and initiatives such as the Stock Exchange of Hong Kong and the GRI. Conducting materiality assessment is also an important preparation for ESG information disclosure. Recently, IFRS, CSRD and other international sustainability disclosure standards have proposed the double-materiality assessment method, that is, to add financial impact analysis to the materiality analysis of ESG issues, which also reflects the latest demand of the capital market for listed companies.

CECEPEC provides enterprises with comprehensive solutions for the materiality assessment. Through in-depth macro research and solid analysis methods, it helps enterprises to identify materiality issues. At the same time, it assists enterprises to understand ESG development trends, clarify key focus areas, and lay the cornerstone for the next step of information disclosure and strategic management, including:

  • Carry out megatrend analysis and policy research, and build a library of ESG issues;
  • Identify priority stakeholder groups and conduct stakeholder surveys that combine quantitative and qualitative methods to assess materiality issues (which can incorporate a double-materiality perspective);
  • Analyze the assessment results and build a matrix of material issues;
  • Assist enterprises in identifying material issues;
  • Disclose ESG information on the analysis process and results of materiality issues to ensure that ESG reports respond to ESG issues;
  • Based on the assessment results of material issues, the construction of corporate ESG strategies can be carried out, and the key areas and directions can be clarified.

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