Materiality assessments may soon be everywhere. But do they really drive strategy?

A young businesswoman is attending a business meeting in a meeting room in a modern office working space. (Credit: Getty Images)

It's not uncommon for companies to use materiality assessments to set their ESG plans. But are they as effective as they should be?

Let’s start with materiality assessments’ ubiquity. A materiality assessment helps a company “understand the [ESG] issues that matter most to [its] internal and external stakeholders; […] and how they translate today and in the future into associated risks and opportunities for [the] company.” (Thank you, Novartis, by the way, for that clear and concise definition.)