The concept of Materiality Assessment originates from financial reporting, where “material” issues are those that could influence the decisions of investors or stakeholders. In sustainability and corporate governance, the concept was expanded to include non-financial dimensions, gaining prominence through frameworks such as the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and later the European Sustainability Reporting Standards (ESRS). Under the Corporate Sustainability Reporting Directive (CSRD), Materiality Assessment becomes a mandatory and foundational step for determining what information a company must disclose, based on the principle of Double Materiality—evaluating both how sustainability factors affect the organization (financial materiality) and how the organization affects people and the planet (impact materiality).

Materiality Assessment is a systematic process for identifying which sustainability issues are most relevant to an organization’s long-term success and its broader ecosystem.

It integrates quantitative data, qualitative insights, and stakeholder engagement to determine which topics should be prioritized in reporting, strategy, and decision-making.

The process typically involves several phases:

1. Identification – compiling a comprehensive list of potential ESG topics based on internal analyses, industry standards, and stakeholder expectations.

2. Prioritization – evaluating these topics according to their significance for the organization (financial impact) and for external stakeholders (social or environmental relevance).

3. Validation – confirming findings with leadership and stakeholders to ensure alignment with corporate strategy.

4. Integration and disclosure – embedding material topics into sustainability reports, strategy documents, and performance indicators.

The result is a materiality matrix, visually mapping the relative importance of each issue from two perspectives:

• The vertical axis represents external significance (impact on society, environment, and stakeholders).

• The horizontal axis represents internal significance (financial relevance and business impact).

In Contemporary Marketing Management, Materiality Assessment is not only a reporting tool but also a strategic compass.

It helps organizations focus on what truly matters—transforming abstract commitments into operational priorities—and ensures that sustainability communication is grounded in evidence, avoiding greenwashing or superficial narratives.

This process fosters cross-functional collaboration, bringing together marketing, finance, HR, and operations to co-create strategies that respond to both stakeholder needs and business objectives.

A company conducting a Materiality Assessment may identify climate change, employee well-being, and data privacy as its most material topics. These priorities are then integrated into its sustainability strategy, guiding both action plans and ESG reporting. For example, a telecommunications company might highlight digital inclusion as a key material topic, reflecting both societal impact and business opportunity.