Materiality Assessments


Organisations are expected to conduct periodic assessments to determine their material ESG risks and opportunities. Guerdon Associates guides clients through the materiality assessment process, designing a fit-for-purpose approach that follows the Global Reporting Initiative (GRI) materiality principles. This is an acceptable standard for institutional investors.

We support clients to identify and assess impacts on an ongoing basis. This starts with understanding the client’s context, including assessing the activities, value chain, stakeholders, and ESG context of the client.

We work with the client to identify actual and potential ESG impacts on and from the business. Our approach acknowledges that impacts can be multi-directional, that is, the organisation’s activities can have ESG impacts, while broader ESG issues can impact the organisation.

Once ESG impacts have been identified, we assist to assess the significance of those impacts, based on the scope and scale (i.e., severity), likelihood and timeframe of those impacts. This prioritisation narrows down the most material ESG impacts for management and reporting.

The assessment process is customised. External inputs to the process can be referenced and may include peer/competitor disclosures, megatrends, relevant international and domestic standards, and stakeholder publications. Internal inputs may include policies and disclosures, the existing risk register, interviews and surveys, historical assessments, and board/committee papers.