LE1: Entity Materiality Assessment

(1.8 points)

Intent

The intent of this indicator is to assess whether the entity has undertaken a materiality assessment. A materiality assessment is a common exercise adopted to inform sustainability reporting and communication strategies.

As well as guiding the issues for ESG reporting, a materiality assessment should also be used as a strategic business tool. A materiality process delivers greatest benefits when used as an opportunity to apply an ESG lens to business risk, opportunity, trend-spotting and enterprise risk management processes, and as an engagement tool with stakeholders.

Requirements

Select Yes or No: If selecting Yes, select applicable sub-options.

Has the entity undertaken an ESG materiality assessment in the last three years?

• Yes
  • Elements covered in the materiality assessment report (multiple answers possible)
    • Identification of the material ESG issues from the entity's operations
    • Engagement with relevant stakeholders to identify which issues are material
• No
  • Provide additional context for the answer provided (not validated, for reporting purposes only)

    ________________________

Prefill: This indicator has remained the same as the 2019 Assessment and has been prefilled with 2019 Assessment answers. Review the response and/or evidence carefully.

Validation

This indicator is not subject to automatic or manual validation.

See Appendix 4 of the reference guide for additional information about GRESB Validation.

Scoring

This indicator is scored as a One Section Indicator. Evidence is not required. The score of this indicator is based on the materiality assessment i.) identifying material ESG issues assessed and ii.) engaging with stakeholders to identify material issues. Selecting both checkboxes is required in order to score maximum points.

Terminology

Material: An issue is material if it may reasonably be considered important for reflecting an entity's relevant environmental, social or governance impacts; or substantively influencing the assessments and decisions of stakeholders.

Materiality assessment: The process for determining which ESG issues are material to an entity.

Relevant impacts: Are those that are a subject of established concern for expert communities, or that have been identified using established tools, such as impact assessment methodologies or life cycle assessments. Impacts that are considered important enough to require active management or engagement by the entity are likely to be considered relevant.

References

Good practice example: Please refer to pages from 4 to 9 at this link.

Alignment with External Frameworks

DJSI CSA 2019 - 3.2 Materiality

GRI Standards 2016 - 101-1.3: The Materiality Principle

Relevant UN Sustainable Development Goals

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