Identify the ESG topics that truly matter — to your business and to the world. Our materiality assessments combine impact materiality (GRI/ESRS) and financial materiality (ISSB/IFRS) to deliver a robust, stakeholder-validated foundation for BRSR reporting, sustainability strategy, and ESG rating improvement.
Materiality assessment determines which ESG topics deserve attention, resources, and disclosure. Without it, companies either report everything superficially or miss the topics that investors, regulators, and rating agencies care about most.
BRSR Section B requires companies to disclose which NGRBC principles are material and how material topics are identified. BRSR Principle 4 (Stakeholder Engagement) specifically asks about materiality processes. ESG rating agencies evaluate whether companies have a documented materiality assessment process. Without one, you lose points across CRISIL, MSCI, and Sustainalytics.
A sustainability strategy without materiality is directionless. Materiality tells you where to set targets, allocate resources, and focus disclosure. It also prevents greenwashing accusations — by demonstrating that your priorities are stakeholder-validated, not cherry-picked.
Indian companies with EU operations, subsidiaries, or significant EU revenue will face CSRD obligations from FY 2028. CSRD’s European Sustainability Reporting Standards (ESRS) mandate double materiality — assessing both impact and financial dimensions. Starting now builds readiness.
The concept of materiality has evolved. We apply the right lens depending on your reporting obligations and stakeholder needs.
GRI 2021 | NGRBC
What are the most significant impacts of your company on people and the environment? Outward-looking. Considers both positive and negative impacts, actual and potential. Required for GRI-aligned reporting and BRSR.
Best for: All listed Indian companies (BRSR alignment), GRI reporters
CSRD/ESRS | Integrated
Combines impact materiality and financial materiality. A topic is material if it has significant impact on people/environment or could reasonably affect enterprise value. The emerging global standard under EU CSRD.
Best for: EU-exposed companies, CSRD-scoped entities, forward-looking strategy
ISSB/IFRS S1-S2 | SASB
Which ESG topics could reasonably affect enterprise value, cash flows, or financial condition? Inward-looking. Investor-decision-useful. SEBI is studying ISSB adoption for India.
Best for: Investor-focused reporting, financial institutions, ISSB adopters
A structured four-phase process that delivers a defensible, stakeholder-validated materiality assessment.
Map the universe of potential ESG topics relevant to your sector, value chain, and operating context. We use multiple reference sources to ensure comprehensive coverage:
Deliverable: Long list of 30–50 candidate ESG topics with source mapping and preliminary categorisation.
Structured engagement with internal and external stakeholders to capture diverse perspectives on topic significance. Methods tailored to each stakeholder group:
Deliverable: Stakeholder engagement report with methodology, participation, key findings, and response analysis.
Score each topic on two dimensions — impact significance (severity, likelihood, irremediability) and financial significance (magnitude, likelihood, time horizon). Apply quantitative thresholds and peer benchmarks. For double materiality: a topic is material if it meets the threshold on either dimension.
The result is a prioritised list of 12–20 material topics, typically categorised as High Priority (requires targets, governance, and detailed disclosure), Medium Priority (requires management approach and monitoring), and Monitoring (tracked but not currently material).
Deliverable: Materiality matrix (visual), scored topic register, and materiality determination documentation.
Facilitated board/management workshop to validate the material topics, approve priorities, and confirm the materiality matrix for publication. We then integrate the results into:
Deliverable: Board presentation pack, publication-ready materiality matrix, material topic profiles with KPIs and management approach.
While each company’s materiality is unique, certain topics consistently emerge as material across Indian sectors.
120-question assessment that identifies gaps across all 9 NGRBC principles — a natural starting point for materiality topic identification.
Start free →42 policy templates aligned to BRSR principles. Once material topics are identified, policies need to be in place for each — as required by BRSR Section B.
Download free →Supplier sustainability assessment to identify value chain material topics — critical for Scope 3, BRSR value chain disclosure, and CSRD.
Launch tool →Materiality is the foundation — strategy translates it into targets and action
Map material topics to NGRBC principles for focused BRSR reporting
Align board oversight structures with identified material topics
Assure data quality on material topics for credible reporting
BRSR does not explicitly mandate a formal materiality assessment process. However, it requires companies to identify which principles and topics are material and disclose their management approach accordingly. BRSR Principle 4 (Stakeholder Engagement) asks about materiality processes. Practically, all ESG rating agencies evaluate whether a company has a documented materiality assessment, and its absence negatively impacts scores across CRISIL, MSCI, and Sustainalytics.
Single materiality (impact) assesses a company’s impacts on people and the environment (GRI approach). Financial materiality assesses ESG topics’ effects on enterprise value (ISSB/SASB approach). Double materiality combines both — a topic is material if significant on either dimension (CSRD/ESRS approach). Dynamic materiality recognises that topics can shift between categories over time as societal expectations and regulations evolve. We recommend double materiality as the most future-proof approach.
Typically 12–20 material topics, prioritised into 2–3 tiers (high, medium, monitoring). Having too few suggests insufficient analysis; too many dilutes focus. The exact number depends on company size, sector complexity, and value chain breadth. Each material topic should have a defined management approach, KPIs, and governance ownership.
Best practice is an annual review with a full reassessment every 2–3 years. The annual review checks for material changes (regulatory, market, operational) that may shift topic significance. Major events (acquisitions, entering new markets, new regulations like CBAM or CSRD, significant incidents) should trigger an ad-hoc reassessment. GRI 2021 requires that the materiality process is documented and repeatable.
If your company has EU operations generating >€40 million in EU net turnover, or is an EU subsidiary of a non-EU parent with >€150 million EU revenue, CSRD may apply from FY 2028 onwards. CSRD mandates double materiality under ESRS. Even if not currently in scope, Indian companies with significant EU exports, EU-listed bonds, or EU institutional investors should start building double materiality capability now to prepare for inevitable requirements.
Book a consultation to discuss materiality assessment for your company — impact, financial, or double materiality.