This webinar, "How Do ASX 200 Companies Identify Material Sustainability Topics?", explores how companies listed on the Australian Securities Exchange (ASX) determine their material sustainability topics. The presenters discuss the concept of materiality and its importance, defining it as the significance of sustainability issues to a company's financial performance, as well as its impact on the environment and society. This includes both financial materiality (risks and opportunities) and impact materiality. The webinar highlights the concept of double materiality, which brings both perspectives together.

Our experts share insights from a study of ASX 200 companies, noting that 83% have identified and reported material sustainability matters. They also note that most companies who report on ESG do so annually. While some companies perform materiality assessments annually, others do them every two or more years. The webinar also notes that the average number of material topics identified by companies is about 11, with a range from 3 to 41. The speakers emphasize that companies should set materiality thresholds and document the rationale and methodology behind their choices.

The presenters discuss the challenges of comparing sustainability topics across different companies, due to a lack of standardized reporting. They found that the most commonly reported topics include human rights and community relations, employee engagement, and business ethics. The webinar concludes by noting that materiality is essential for driving strategy and resourcing. Key lessons include the importance of defining how a topic becomes material, standardizing topics, and avoiding a "captain's call" approach to selecting which topics to report on.

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