Providing Insights Into The Relative Materiality Of ESG Factors
As environmental, social, and governance (ESG) factors become integral considerations in the marketplace across many types of analysis, investors are seeking more and clearer information about what these mean, including their relevance and materiality. In this context, S&P Global Ratings and S&P Global Sustainable1 have jointly researched two dimensions of ESG materiality: stakeholder materiality and financial materiality. This report also discusses how a materiality mapping exercise can evaluate the relationships between these two dimensions in a given sector--including evolving and dynamic interactions. We believe the sector materiality map we propose and the relationships it illustrates can help investors better frame their own analysis of ESG materiality.
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