ANNOUNCEMENTS
While ESG reporting is becoming more significant, many companies are still finding it difficult to do the basic step of materiality assessment. The GRI and BRSR are some of the well-known ESG materiality frameworks, yet they are not standardized, are not closely aligned with the SDGs and typically fail when it comes to meaningful engagement with stakeholders. Because of these issues, ESG disclosures lack objectivity, can’t be compared easily and offer less value in strategic decisions. There is a big issue in not having a common way to pick out material ESG concerns.
Because no two assessment approaches use the same weights for ESG factors, organizations find that assessments of sustainability effects and risks are inconsistent. In India, companies under BRSR sometimes interpret material ESG matters in different ways which causes disagreements in their disclosure statements. In addition, 88% of companies do not have their material topics connected to the SDGs, showing that companies are not linking global sustainability goals to their reporting. It points to the need for improved processes and clear instruction for businesses to fit their ESG targets with SDG goals. In addition, these assessments usually focus more on collecting information than involving stakeholders in talks.
A lot of organizations focus more on reporting required by standards than on meaningful consultation with their stakeholders. It weakens the integrity and quality of using ESG assessments. Therefore, MatAssess, a tool using data, has been introduced by this thesis to support consistent materiality assessment by using benchmarks from related industries. MatAssess seeks to lighten the work that cannot be automated, make tasks more efficient and bring better support to the GRI, BRSR and SDG frameworks. It helps organizations build a better and more scalable base for their ESG activities and evaluations using intelligent technology.
KEYWORDS:
• ESG Reporting
• Materiality Assessment
