Our Methodology

ESG materiality assessment is a key step in developing a sustainability strategy that aligns with the organisation's vision, mission, values, and goals. It helps to identify and prioritise the ESG issues that are most relevant and impactful for the organisation and its stakeholders, both internal and external.

Our approach to developing a comprehensive Materiality Assessment for your organisation follows a structured methodology focused around three core phases.

Phases

Discovery

This foundational phase sets the stage for the entire assessment process. It involves defining objectives, identifying stakeholders, and gathering preliminary data. Key activities include establishing the scope of the assessment, setting timelines, and preparing the necessary resources.

Assessment

At the heart of the methodology, this phase involves conducting in-depth analysis to identify and prioritise ESG issues. It encompasses data collection, stakeholder engagement, and issue prioritisation, culminating in the creation of a materiality assessment chart.

Validation

This final phase ensures the accuracy and relevance of the assessment findings. It involves reviewing the data and outcomes with stakeholders, refining the materiality chart as needed, and confirming the assessment's conclusions.

Integrated throughout each phase are Communication and Project Management Plans

Communication: Effective communication ensures transparency and stakeholder engagement. This encompasses regular updates, feedback loops, and the dissemination of findings through a comprehensive communication plan and strategy.

Project Management: Fundamental to the successful execution of the methodology, project management involves overseeing the planning, execution, and closure of the project. This includes defining roles and responsibilities, managing timelines and budgets, and ensuring the quality and integrity of the assessment process.

Overview of Methodology

Overview of our Methodology depicting the 3 Phases governed by Project Management and Communication Plans along with major activities and outputs.

The process of assessing materiality is vital for companies that want to incorporate sustainability into their business strategy successfully. A well-conducted ESG materiality assessment can bring various benefits to a company, such as:

Enhanced Risk Management: An ESG materiality assessment can help to identify and mitigate the potential risks that may arise from the company's exposure to ESG issues, such as climate change, human rights, corruption, data privacy, etc. By addressing these issues proactively, the company can reduce the likelihood and impact of reputational, legal, operational and financial losses.
Improved Stakeholder Engagement: An ESG materiality assessment can help to understand and respond to the needs and expectations of the company's key stakeholders, such as investors, customers, employees, regulators and society at large. By engaging with these stakeholders, the company can build trust, loyalty, satisfaction and advocacy, as well as identify new opportunities and challenges.
Increased Competitive Advantage: An ESG materiality assessment can help to identify and leverage the opportunities that may arise from the company's performance on ESG issues, such as innovation, differentiation, market access, cost savings, etc. By capitalising on these opportunities, the company can enhance its value proposition, brand image, customer loyalty and market share.
Strengthened Strategy and Reporting: An ESG materiality assessment can help to align the company's strategy and reporting with the most relevant and significant ESG issues for the company and its stakeholders. By focusing on these issues, the company can demonstrate its commitment, progress and impact on ESG matters, as well as communicate its value creation story to its stakeholders.

Using our methodology, SCL can provide a materiality assessment which provides crucial tools for companies seeking to develop a comprehensive and strategic approach to sustainability. We can provide valuable insights which can inform decision-making and strengthen stakeholder engagement, contributing to a more sustainable and successful long-term business strategy.