An ESG materiality assessment is a tool used to identify and prioritise ESG issues that are the most critical to your firm.
The outcome of a ESG materiality assessment process will be different for everyone – enabling you to understand the relative importance of specific ESG topics to your own business. Armed with the findings of your ESG materiality assessment you will be better placed to dedicate resources and focus on those areas most material to your firm.
Steps to identify material topics for your firm include:
- Brief stakeholders (see Section 5) on the objective of your materiality assessment.
- Identify what you want to measure and prioritise from the list of ESG topics (See In Focus – ESG Stepping Stones below).
- Design your discussion informed by the number/type of stakeholders.
- Start gathering insights and feedback on the identified ESG topics.
- Analyse the feedback received to finalise the ESG topics material to your firm.
Support with all of the above five steps can be found within guidance from Thomson Reuters.
In focus: ESG Stepping Stones, Insurance
Our ESG Stepping Stones one to eleven provide an introduction to the following key
ESG material topics relevant to insurance. These will aid your understanding .
Green offices (premises, reduce-reuse-recycle, etc)
Carbon management strategy – reduction (energy efficiency) and offset
Social value management
Diversity, equity, and inclusion (DEI)
Mental health and wellbeing
Local community engagement
Modern slavery and human rights
Anti-bribery and corruption (ABC) and anti-money laundering (AML)
Data protection and privacy
Responsible procurement (suppliers, insurers, etc)
Partnership with clients on green repairs and products