Materiality matrix: how to engage stakeholders? -

Do you know the role of stakeholders in preparing the materiality matrix?

In general, the materiality assessment process consists of conducting a questionnaire or an interview with stakeholders to obtain their view on the topics that the company should focus on to improve or maintain the success of its business.

They can provide a wide range of perspectives across the value chain on your company’s sustainability strategy. Moreover, engaging stakeholders to provide their opinion is key to select and prioritize topics in the materiality matrix.

To structure the matrix, we cross-reference the opinion of the stakeholders with the company’s point of view, that is, what each one considers to be a priority and fundamental for business continuity.

Who are the stakeholders?

Every business has a group of people that is directly impacted by the organization’s actions: the stakeholders. These people can be:

employees;
suppliers;
customers;
investors;
shareholders;
board members;
the surrounding community;
among others.

Just remember that it is important to consider internal stakeholders (those who collaborate actively in the company) and external stakeholders (they do not participate directly in operations but have influence and are directly affected by the organization’s results).

Assess the position, influence and especially the impact of the opinion of the stakeholder in question when selecting them to participate in the materiality assessment.

How many stakeholders should be interviewed?

There is no exact number or proportional amount as a rule to be considered. You should seek to reach leaders who have influence or decision-making power inside the organization.

Taking a manufacturer as an example: when interviewing employees on the factory floor, will they be able to inform what is material to their business? What is more important or less important at a strategic level?

Now using a supermarket as an example: the establishment has 350,000 products, how many external stakeholders should I interview?

In this case, it is important to evaluate:

what are the best-selling products?
which products generate the highest profit margin for the supermarket?
which products are recognized for having better quality?
which products are directly associated with the establishment’s image?

Based on this information, it is possible to map and rank the stakeholders, defining the level of importance and their influence on the product offered.

How to engage stakeholders?

Finally, here are some tips on what can be done to engage stakeholders and encourage their participation to structure the materiality matrix:

Transparency: explain the work being done and the impact of their opinion on the final result.
Proper communication: communicate how important this stakeholder’s opinion is to the business.
Don’t settle for just the questionnaire! See if you can schedule an interview with the stakeholder.
Be objective: ask what they consider as important to maintain the quality of your company’s services or products.
Listen to your stakeholder! Understand their vision of your company.

Therefore, it is very important to consider how important your company is to this stakeholder, after all, they will dedicate their time to answer what they consider material for your company.

Are you interested in learning more about ESG after having read this article? If so, I would like to invite you to view some of the other content that has already been prepared on this topic here on our blog!

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