How to start an ESG materiality analysis in a company

The ESG (Environmental, Social, Governance) materiality analysis helps identify the sustainability issues that are most relevant to the company and its stakeholders. This process helps companies understand which factors really impact on economic performance and reputation, improving the management of ESG risks and opportunities. It also underpins the main reporting standards, such as those required by the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS). Companies that decide to undertake a materiality analysis by placing sustainability at the core of their business promote responsible, transparent and long-term oriented growth.

The first operational step in undertaking a materiality assessment is to clearly define the scope of the analysis and to involve stakeholders. It is necessary to determine whether the analysis will cover the entire corporate group or a single business unit, and to identify all internal and external stakeholders: employees, customers, investors, suppliers, local communities, regulators. The stakeholder dialogue is a key step for the dual materiality introduced by the CSRD, which requires considering both the impact of the company on ESG factors and the influence of these issues on the value of the company. Modes of engagement may include surveys, interviews, workshops or focus groups. Proper stakeholder mapping enables the collection of concrete and relevant input, creating the basis for a coherent and shared analysis.

Once the perimeter has been defined, it is necessary to construct an initial list of potentially relevant ESG topics. This step is based on industry benchmarks, international guidelines (GRI, SASB, TCFD,TNFD) and best practice analysis. The issues identified must then be assessed according to two dimensions: relevance to stakeholders and impact on business. And it is here that the concept of double materiality has its expression, with a thorough and balanced analysis. It is important to use objective criteria and transparent methodologies, such as evaluation matrices or scoring systems. The result is a classification of issues into material and non-material, which is useful for guiding strategies, reporting and concrete actions. A well-conducted analysis allows the company to focus on what really matters, avoiding dispersion and greenwashing.

The materiality matrix is the visual tool that summarises the results of the analysis. In it, the ESG issues are represented according to their importance for stakeholders (horizontal axis) and for the company (vertical axis). The construction of the matrix requires the careful collection and analysis of data from stakeholder discussions and internal evaluations. Digital technologies can support this phase through collaborative platforms, data visualisation tools and dedicated ESG software. An effective matrix must be clear, understandable and easily updated over time. It should also be integrated into the sustainability budget and corporate decision-making processes.

The results of the materiality analysis must be integrated into corporate strategy, ESG policies, risk management and non-financial reporting. The material issues identified will guide priority actions, investments and medium- to long-term sustainability goals. Transparency in reporting, through standards such as the ESRS, reinforces stakeholder trust and enhances corporate commitment. Furthermore, materiality analysis provides a solid basis for building a sustainability-oriented corporate culture, raising awareness among all staff and fostering a participatory approach. In an increasingly regulated and competitive environment, integrating materiality into corporate DNA is a strategic lever to generate lasting value.

To answer this question, the first step is to initiate a dual materiality assessment, part of the sustainability reporting required by CSRD. According to the standard ESRS E4 (Biodiversity and Ecosystems), nature is considered materiality for all companies operating in sectors with high dependence or impact on natural ecosystems. ESRS E4 also refers to the international TNFD framework, which has identified a list of sectors with high risk of interaction with nature. If your company belongs to one of these sectors (e.g. agriculture, forestry, fishing, energy, mining, construction or tourism), it is very likely that nature and biodiversity are material in your materiality matrix. Acknowledging this materiality allows you to manage the risks and opportunities associated with the ecological transition, as well as demonstrate your commitment to protecting natural capital.

This article has been realised within the project "Biodiversity services EU expansion" (CUP: E43D22000480009) in the framework of the Lombardy Region's call for tenders "PR FESR 2021-2027 - LINEA INTERNAZIONALIZZAZIONE 21-27", aimed at supporting the internationalisation of Italian companies. 3Bee is the naturetech company that develops innovative technologies for monitoring, protecting and regenerating biodiversity, supporting companies in defining customised climate strategies based on the analysis of their impacts and dependencies on nature. With an established portfolio in Italy, Germany and France and prominent partnerships, 3Bee continues its expansion into international markets to create real impact through technology.