In which stage of the materiality assessment process is stakeholder engagement involved?

Stakeholder engagement is a critical component of the materiality assessment process, and it is most effectively incorporated after establishing objectives and scope. At this stage, organizations have already defined what their sustainability goals are and the context within which they are operating, allowing for a more focused and relevant discussion with stakeholders. Engaging stakeholders at this point ensures that the concerns and inputs of various groups—such as customers, employees, investors, and community members—are taken into account as the organization seeks to align its sustainability objectives with stakeholder expectations. This enhances the credibility of the materiality assessment and helps the organization identify the most relevant issues that will impact both stakeholders and the business.

Involving stakeholders before defining objectives could lead to misalignment, as stakeholders may introduce various issues that do not fit within the organization's strategic focus. Engaging them too late, such as during prioritization or after a process review, may also limit the input needed to genuinely reflect stakeholder concerns in the established objectives and drive sustainable decision-making. Therefore, integrating stakeholder engagement after these foundational elements ensures a comprehensive and effective materiality assessment.