Materiality Assessment
The strategic foundation for your sustainability management
A materiality analysis is a structured process that helps companies identify which sustainability issues are relevant to them. It forms the basis for sustainability management and reporting. The aim is to identify, assess and prioritise the material issues. This enables companies to focus their sustainability efforts effectively.
A well-founded materiality analysis offers several key benefits:
- Systematic analysis and strategic integration of sustainability topics in your company’s specific context
- Clear focus and prioritization for efficient resource allocation
- A solid foundation for meeting regulatory requirements for non-financial reporting (e.g., Art. 964 CO, CSRD, etc.)
- Greater transparency and enhanced credibility of your sustainability strategy
- Structured involvement of internal and, if needed, external stakeholders to incorporate diverse perspectives and expectations
Different requirements depending on the reporting framework
The requirements for a materiality analysis depend heavily on the chosen reporting standard. Whilst the Global Reporting Initiative (GRI) standards focus on a company’s impact on the environment, people and society, the European Sustainability Reporting Standards (ESRS) under the CSRD require a dual materiality analysis. This also involves assessing financial opportunities and risks for the company.
Single materiality assessment
The single materiality analysis according to GRI focuses on a company’s actual and potential impacts on the economy, the environment and people. The central question, therefore, is which sustainability issues are material from the perspective of the company’s impacts.
Double materiality assessment
The double materiality analysis under ESRS takes both perspectives into account and enables sustainability aspects to be linked to corporate objectives and strategy by identifying risks and opportunities. A topic may be considered material if it is material from either of the two perspectives.
The perspectives of double materiality
The analysis considers two perspectives:
Inside-Out: This focuses on the company’s environmental and social impact. The aim is to identify the areas in which the company has a significant impact, both positive and negative.
Outside-In: This perspective examines how external sustainability factors affect the company itself. The goal is to identify relevant opportunities and risks that could influence the company’s economic success and long-term resilience.
Using climate as an example: the analysis considers both the greenhouse gas emissions generated directly by the company or along its value chain (Inside-Out), as well as opportunities such as developing new business areas through climate adaptation, or risks arising from more frequent extreme weather events (Outside-In).
The materiality matrix
A commonly used output of the analysis is the materiality matrix, which maps topics along the two key perspectives: impacts on environment and society (Inside-Out) and financial risks and opportunities (Outside-In). It helps visualize the breadth of relevant topics but does not replace a thorough assessment of materiality.
Important: Topics located in the “top-right corner” of the matrix are not the only ones considered material. According to the ESRS, a topic with significant impacts but limited financial relevance may still be subject to reporting requirements. The matrix is therefore a visualization tool—not a standalone decision-making basis.
How SuCo supports you
We help you lay the foundations for your sustainability strategy and reporting through a robust materiality analysis. Our structured approach helps you identify, categorise and prioritise relevant impacts, risks and opportunities.
We guide you through the process, from context analysis – including benchmarking against competitors – and value chain analysis, right through to the selection and assessment of relevant topics. We take into account both relevant standards and company-specific issues, conduct prioritisation workshops and, where necessary, involve internal and external stakeholders. We document the results in a transparent manner, ensuring they serve as a robust foundation for strategy, reporting and further decision-making.
Whether it’s an initial analysis, adding financial risks and opportunities to an existing materiality analysis, or a periodic update: we’ll find the right approach for you and support the process from start to finish.
Our three-step approach
1. Foundations and context analysis
First, we analyse your company within the context of the wider operating environment and review relevant documents. We map out your value chain, taking external conditions into account. The findings are compared against relevant topic standards, and a benchmarking exercise is carried out against your key competitors. The result is a list of potentially material topics arising from business activities that affect people and the environment, or financial risks and opportunities (long list).
2. Assessment and prioritisation of topics
In the second step, we assess and prioritise the identified topics in workshops with relevant internal stakeholders such as sustainability officers, senior management, the finance department or risk management. To ensure a holistic perspective, we supplement the internal view with interviews with external experts or stakeholder workshops. Based on all the information, we jointly establish thresholds for determining when a topic is considered material.
3. Validation and reporting
In the final step, you will validate the prioritised topics for your organisation. We present the decision-making basis clearly and concisely and, if required, deliver the results directly to the relevant committees. Once validation is complete, you will receive full documentation of the process and the results, including ready-to-use text modules for your sustainability reporting in accordance with the chosen standard. These can be used directly in your reports without any further effort.
The right approach for your company
Using our proven and efficient methodology, we create materiality analyses that are individually tailored to your company. Whether you need an initial pragmatic analysis of the impact of your business activities, an update of an existing materiality analysis, or a comprehensive double materiality analysis in accordance with CSRD, we will work with you to develop the right approach. This ensures that the scope and depth of the analysis are precisely aligned with your strategic goals, regulatory requirements and company resources.
Basic
- Context analysis
- optional benchmarking
- Longlist and shortlist
- Survey to assess the topics
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- Analysis and presentation of the results
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- Final report
Advanced
- Context analysis
- Benchmarking against up to 4 competitors
- Longlist and shortlist
- Survey to assess the topics
- Workshop on prioritising topics
- Up to 3 interviews with external stakeholders
- Analysis and presentation of the results
- Feedback loop
- Text modules for the sustainability report
- Final report
CSRD-compliant
- Context analysis
- Benchmarking against up to 6 competitors
- Longlist and shortlist
- Survey to assess the topics
- Workshop on prioritising topics
- Up to 5 interviews with external stakeholders
- Analysis and presentation of the results
- Feedback loop
- Text modules for the sustainability report
- Final report
What you'll get from us
- Prioritization of the sustainability topics that are most material to your organization, providing a strategic foundation for your sustainability management
- Company-specific materiality matrix
- Guidance throughout all phases of the analysis and facilitation of stakeholder workshops
- Comprehensive documentation, including ready-to-use text modules describing the process and outcomes of the materiality assessment, which can be directly integrated into your sustainability reporting
Project Examples
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