Global and regional sustainability standards are developing constantly, with growing regulatory and market driven requirements for organisations to assess and disclose their ESG impacts. Materiality assessments are a cornerstone of effective sustainability strategy and reporting. By identifying the sustainability-related topics that are most relevant to both your organisation and its stakeholders, materiality ensures that strategies and disclosures focus on what truly matters.
We undertake materiality assessments in line with recognised standards such as IFRS S1 & S2, AASB S1 & S2, GRI, and ESRS, ensuring outcomes are defensible and aligned with global best practice. Our process combines stakeholder insights with organisational priorities to determine both impact materiality (outward effects on society, the environment, and stakeholders) and financial materiality (inward impacts on business value and performance).
Using a range of techniques including surveys, interviews, and interactive workshops, we capture diverse perspectives, then analyse and present findings through clear visuals such as heat maps and priority matrices. The result is a transparent, standards-aligned framework that strengthens strategy development, compliance, and stakeholder trust.
Beyond compliance, this process strengthens social licence to operate, builds trust, and directs resources to areas with the greatest impact on performance, resilience, and long-term value.
FINANCIAL
MATERIALITY
Financial materiality assessment examines how ESG issues influence your organisation’s financial performance, value, and risks, from increased costs due to regulation to revenue opportunities from green innovation. Unlike impact materiality, which looks outward, financial materiality is inward-focused on economic viability, assessing which topics could materially affect cash flows, assets, or liabilities in line with recognised sustainability reporting standards such as IFRS, SASB, ESRS and AASB.
DOUBLE
MATERIALITY
Double materiality requires looking at both dimensions of impact and financial value, recognising that and organisation can both affect and be affected by a sustainability-related topic. In adopting a double materiality approach, organisations consider a wide sphere of impact, driving greater transparency in sustainability reporting.
IMPACT
MATERIALITY
Impact materiality assessment evaluates how your organisation’s activities affect the economy, natural environment, stakeholders, and society, highlighting outward impacts. Unlike financial materiality, which focuses on internal financial implications, impact materiality emphasises external effects. It is often guided by frameworks such as the GRI Standards or the United Nations Sustainable Development Goals.
Benefits
Prioritise What Matters
Identify ESG issues of greatest significance to stakeholders and the business.
Support compliance
Align with leading frameworks such as IFRS S1 & S2, AASB, GRI, and ESRS.
Strengthen Relationships
Demonstrate responsiveness by focusing on stakeholder priorities.
Enable Efficient Resourcing
Direct time and investment to areas with the greatest strategic impact.
What is the difference between single materiality and double materiality? How do I know which one to use?
In Sustainability reporting, single and double materiality determine what information is important (material) to disclose. Single materiality focuses on the financial performance of the company, looking at how sustainability topics may create financial risks or opportunities. Double materiality assesses both financial impacts, as well as the impacts that the company may have on the environment and society. The scope of your materiality assessment should consider which disclosure standards apply to you- IFRS and SASB use a single materiality approach, whereas GRI and ESRS adopt double materiality.