Lecture2.5

Question 1

What is the Materiality Matrix?

Answer 1

Definition: A tool to combine the view of stakeholders and the company to prioritize sustainability issues.

Question 2

Why use the Materiality Matrix?

Answer 2

• Include stakeholders view in sustainability planning
• Identify shared value creation opportunities -> for company and all stakeholders
• Meet reporting standards requiring its application

Question 3

How to develop a Materiality Matrix?

Answer 3

1. Identify key sustainability issues (e.g., ISO 26000)
2. Align this list of issues with corporate strategy and relevant stakeholders
3. Assess relevance to company (x-axis) and stakeholders (y-axis) -> plot
4. Determine relevant stakeholders -> identify stakeholders
5. Assess relevance of listed sustainability issues to the stakeholders (y-axis) -> prioritize stakeholders
6. Record process for transparency

Question 4

What are the categories in the Materiality Matrix?

Answer 4

• Societal issues: High relevance to stakeholders, low relevance to company (e.g., animal welfare for food companies)
• Potential issues: Low relevance to both (e.g., biodiversity impact for car manufacturers)
• Corporate issues: Low relevance to stakeholders, high relevance to company (e.g., employee development)
• Material issues: High relevance to both (e.g., CO2 emissions for car manufacturers)

Question 5

What is crucial about the Materiality Matrix?

Answer 5

• Transparency: Different outcomes possible even within the same industry
• Traceability: Documenting the development process is essential

Question 6

Summary of the Materiality Matrix?

Answer 6

• Tool for corporate sustainability and reporting -> often necessary in official reports
• Defines and prioritizes sustainability issues with stakeholders