1. Datamaran Knowledge Base
  2. Practical use cases
  3. Identification and understanding of non financial issues

How to identify material issues.

In this article, you will learn how to interpret the results of your materiality analysis and read your materiality matrix.

Overall, the higher the scores on the axes, the higher the evidence of relevance for the stakeholders, and the more material an issue for the company.

Datamaran has designed three tailorable zones of importance in your matrix (most important, important, less important) to support you in deciphering the results of your matrix.

Depending on the company’s strategic approach, issues with high internal (or external) relevance only, might be identified as material.

Additionally, it is interesting to identify three groups of issues by crossing the results of the internal and external views:

  1. Top priorities, on which there is a consensus between stakeholders and internal decision makers.
  2. External signals, that are particularly important for the external stakeholders.
  3. Internal signals, that are particularly important for internal decision makers.

We recommend to take into consideration the following factors when prioritizing the material issues:

  • Market opportunities for products or services that would contribute to solving an issue.
  • Differentiation potential if competitors do not tackle the issue yet. You can refer back to Datamaran Benchmark to check this.
  • Innovation potential around an issue, whereas technical or organizational.
  • Corporate values and brand purpose, and their contribution to employee motivation.