Materiality as a strategic tool: potential of a data-driven materiality analysis to enhance business performance

Abstract

Organizations tend to see ESG as a compliance burden and struggle to leverage its true power in today’s rapidly changing environment. This work aims to depict the potentials a data-driven materiality assessment can have on business performance and provide actionable recommendations. The SWOT framework supported the analytical assessment of the qualitative research findings. Triangulation of various sources of information and the ability to monitor changes in externalities can provide immense benefits. Nonetheless, publicly available data involves certain risks that can only be addressed by human collaboration and further developments of frameworks and standards.