Corporate sustainability is not made of good intentions, but of precise choices. Faced with an evolving regulatory framework, growing stakeholder expectations, and increasingly interconnected risks, companies are called to clarify what really matters. This is where ESG materialitycomes into play: a compass to guide strategies, investments, and communication. It’s not just about deciding what to include in the sustainability report, but about defining the priorities that drive daily actions and long-term goals. In this article, you’ll discover why materiality analysis is an essential step and how to set it up effectively.
What ESG Materiality is and why it’s fundamental
ESG materiality is the process through which an organization identifies the most relevant environmental, social, and governance topics for itself and its stakeholders. This process allows one to distinguish between what is important in theory and what, in practice, has a concrete impact on business value, reputation, and the ability to generate lasting benefits.
In other words, not all ESG topics carry the same weight for every company. A business in the energy sector will have different priorities compared to one in large-scale retail or logistics. This is why materiality analysis is not a standard exercise: it must be tailor-made, starting from the organization's reality.
Being able to clearly define material topics means being able to lead change, avoiding dispersion and focusing on what can really make a difference.
Double Materiality: two perspectives to integrate
The introduction of the ESRS (European Sustainability Reporting Standards), linked to the CSRD, requires the adoption of the principle of double materiality. This is not just a regulatory obligation, but a change of perspective.
Impact Materiality
This perspective considers the effects that the company’s activities generate on the environment, people, and society. For example: how much do emissions along the supply chain weigh? What impact do working conditions have on employees or suppliers? The focus is on the external effects of the organization.
Financial Materiality
Here, the focus is on how ESG factors, current or future, can affect the company's economic-financial situation. An example? Rising energy costs or the introduction of a new emissions tax can directly impact operating margins.
Only by bringing these two visions into dialogue is it possible to have a realistic picture of risks, opportunities, and levers to activate in order to build truly sustainable strategies.
How to build an effective materiality analysis
A well-done materiality analysis is the result of a rigorous process that combines method and listening. The fundamental phases are:
- Definition of the scope: clarifying which activities, products, or geographical areas the analysis will focus on.
- Collection of sources: analysis of international standards (GRI, SASB, ESRS), industry benchmarks, regulations, and internal policies.
- Preliminary identification of topics: building an initial list of potentially relevant topics.
- Stakeholder engagement: through interviews, surveys, focus groups, or workshops. Dialogue is a key step to avoid a self-referential view.
- Assessment of relevance: each topic is placed on a matrix that crosses relevance for the company with relevance for stakeholders.
- Internal validation and updating: the result must be discussed with top management and updated periodically.
Once the materiality matrix is created, it becomes a guiding tool for reporting, strategic planning, and communication.
What to do afterwards: from mapping to action
Materiality analysis is a starting point, not an endpoint. The topics identified as priorities must translate into operational choices, both short- and long-term. This is where many companies fail: they compile the matrix but don’t use it.
To make materiality a driver of change, the following are needed:
- Measurable objectives: for each material topic, it is necessary to define targets, KPIs, and timelines.
- Clear internal responsibilities: who does what, with which tools, and with what budget.
- Alignment with reporting: the sustainability report must reflect the material topics and explain how the company is managing them.
- Monitoring progress: updating the matrix every 1–2 years makes it possible to stay aligned with the evolving context and expectations.
Only in this way does materiality truly become a management tool and not just a formal requirement.
How to communicate material topics without falling into greenwashing
Once the material topics are selected, communicating them well is essential. Effective communication must be:
- Clear: without unnecessary technicalities or empty adjectives. Don’t say “100% sustainable” if you can’t prove it.
- Specific: indicate data, time frames, and sources.
- Verifiable: every statement must be supported by evidence, such as audits, LCA metrics, EPDs, or internal KPIs.
- Contextualized: numbers aren’t enough; you need to explain what they mean for the company, the sector, and the stakeholders.
With the new Directive 2024/825/EU and the proposed Green Claims Directive, even words matter. Every statement can be subject to verification, and lack of transparency results in financial penalties and reputational damage.
Tecno Group’s approach to ESG Materiality
Tecno Group supports companies in defining and managing material topics through a complete, flexible, and integrated approach. Here's how:
- Context and regulatory analysis: we start from the relevant scenario—regulatory and sectoral—to identify real priorities.
- Stakeholder engagement structuring: we design surveys, interviews, and workshops to gather the perceptions of internal and external stakeholders.
- Double materiality matrix development: we adopt methodologies aligned with ESRS standards and CSRD principles.
- Integration into business processes: we transform the analysis results into operational levers for governance, strategy, and risk management.
- Support for ESG communication: we help the company tell its commitments with transparency and coherence, avoiding greenwashing risks.
- Updates and follow-up: we assist companies in ongoing monitoring and periodic review of material topics.
