Materiality disclosure in sustainability reporting: fostering stakeholder engagement

Abstract

Purpose

This paper aims to illustrate that stakeholder engagement is a fundamental step of the sustainability reporting process, as it assists in defining the materiality and relevance of the information communicated and enhances greater transparency and greater accountability to stakeholders.

Findings

In today’s corporate world, the role of stakeholder engagement has been recognized as being significant in completing the process for materiality disclosure in sustainability reporting, and it has become one of the vital elements in advancing sustainable development in the corporate sector. The materiality approach has been recommended as the instrument for scoping and defining the content for sustainability reporting or reports that only disclose issues that are considered material from the perspective of the stakeholders. This is relevant to both businesses and stakeholders.

Practical implications

The paper provides strategic insights and practical thinking that have influenced some of the leading global companies in preparing their sustainability reports.

Citation

Ngu, S.B. and Amran, A. (2018), "Materiality disclosure in sustainability reporting: fostering stakeholder engagement", Strategic Direction, Vol. 34 No. 5, pp. 1-4. https://doi.org/10.1108/SD-01-2018-0002