- Aug 2021
Currently, there is no formal or mandated monetary threshold applied to determine what is, or is not, considered material in the sustainability context. Many companies, especially large publicly traded ones, identify their own unique set of sustainability priorities on a regular basis, and include them in their sustainability reports and related disclosures.
This is an opportunity for collective action to complement corporate action. Such collective action will be more effective if closely coordinated with individual actors as well as broader umbrella sectors, as in this particular case.
A material sustainability issue is “an economic, environmental, or social issue on which a company has an impact, or may be impacted by,” according to New York University, and may also affect stakeholders’ decisions with respect to the company.
Materiality covers issues which the company impacts and is impacted by. The latter is often forgotten by stakeholders outside the company but is equally important to a company's sustainability.
Materiality needs to be defined together with stakeholders, but who are the (local, regional and global) stakeholders for a company?