As companies in the food and agriculture sector face increasing complexity, many are turning to materiality assessments to help build effective sustainability strategies. At their core, these assessments help organizations identify and prioritize the sustainability topics that matter most to their business and stakeholders.
This clarity is essential to setting meaningful goals, communicating with stakeholders, and ensuring that sustainability efforts are both strategic and actionable.
The Emergence of Double Materiality
In recent years, the recommended approach for materiality assessments has evolved significantly.
Traditionally, they focused on “impact materiality,” which looked at how a company’s operations affect the environment and society. However, the emergence of “double materiality” has expanded this view.
Now, companies are also asked to consider “financial materiality,” which covers how environmental and social issues can impact the company’s financial performance. This shift, driven by new European regulations and global reporting standards, means that a topic is considered material if it is significant from either an impact or financial perspective (or both).
The result is a more holistic understanding of impacts, risks, and opportunities, ensuring that sustainability strategies are robust and aligned with both stakeholder expectations and business realities.
The Value of Materiality Assessments
The drivers for conducting a materiality assessment are stronger than ever. Regulatory requirements, such as the EU’s Corporate Sustainability Reporting Directive (CSRD), are making these assessments mandatory for many companies. Beyond compliance, investors are increasingly asking for transparency on how significant risks and opportunities are managed. Customers, industry groups, and regulators are also expecting clear communication about sustainability priorities and performance.
Ultimately, a well-executed materiality assessment delivers tangible value. It supports holistic risk management, sharper strategic decision-making, and stronger sustainability reporting.
“Companies that invest in this process gain a competitive advantage,” says Louis DeMaso, Pinion sustainability advisor.
“Proactively addressing the issues that matter most and building trust with stakeholders will ultimately help position them for long-term success in a rapidly changing landscape.”
Are you looking to better understand the steps involved in performing a double materiality assessment? Reach out to a Pinion sustainability advisor to learn how companies perform these analyses.
