Materiality is the principle of defining the social and environmental topics that matter most to the organisation’s business and its significant stakeholder who are identified through the comprehensive stakeholder engagement process. According to the Singapore Exchange’s sustainability reporting requirement, issuers are required to perform materiality assessment in addressing their key ESG issues. Given a wide range of topics on which a company can report in its ESG or sustainability report, the prioritisation of topics that are material and relevant to both the company and its important stakeholder is necessary.

Materiality assessment as a common business tool, empowering the organisation to make strategical decisions on its sustainable development

Integration

Ensuring management of crucial social and environmental issues can be embedded in wider business processes

Risk management

Identifying the topics that have impacted or may influence the company’s strategy and ability to achieve sustainable development

Prioritisation

Enabling the company to allocate resources to issues that top the list and matter most to the company and stakeholders in a rational and efficient way

Respect for stakeholder interests

Consolidating the outcome of stakeholder engagement with effective solutions and timely response to stakeholders

GreenCo’s methodology for materiality assessment

Phase 1

Establish online platform and prepare digital surveys for stakeholder engagement

Phase 2

Create the list of potential material topics in terms of sustainability issues that are likely to affect the financial condition or operating performance of companies within an industry

Phase 3

Put different weight on stakeholders that have distinct levels of impact on the company’s business from various perspectives

Phase 4

Gather the results reflecting the concerns of stakeholders around the company’s sustainable development

Phase 5

Prioritise and map material topics based on the strategic importance into matrix

Phase 6

Evaluate the outcome and seek the validation from the board of the company on the ranking of topics

Phase 7

Initiate a campaign of ‘Wheel of Change’ within the organisation to address the concerns raised by stakeholders in the topics topping the list

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