One of the biggest challenges companies may experience in pursuing their environmental, social and governance (ESG) goals is knowing how best to allocate their resources. A successful ESG plan will align with the company’s core operational strategy, taking into account stakeholder priorities and the prime areas that will most impact business performance.

One useful tool for determining key ESG focal points is a so-called ESG “materiality assessment.” An ESG materiality assessment is an exploratory process through which a company examines and prioritizes the issues that are most critical to its business and identifies the indicators and metrics that will inform the company’s ESG strategy.

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