Materiality sits at the core of credible ESG strategy. Yet for many organisations, it remains an abstract concept disconnected from decision-making. The idea of the Materiality Mountain helps translate materiality into a clear, structured journey, from identifying issues at the base to embedding priorities into strategy and disclosures at the summit.

Rather than a single workshop or matrix, materiality is a progression that builds depth, rigour, and relevance at each stage.

Base Camp: Issue Identification

Every materiality journey begins by scanning the landscape. At this stage, organisations collect a broad universe of potential ESG issues that could affect the business or be affected by it.

This typically includes climate risks, emissions, labour practices, supply chain impacts, governance structures, data privacy, biodiversity, and community impacts. External signals such as regulations, peer disclosures, investor expectations, and sector standards also feed into this process.

The goal at base camp is not prioritisation, but completeness. Missing issues early can weaken everything that follows.

Trail Marking: Stakeholder Input

Once the issue universe is defined, companies begin engaging stakeholders. Employees, customers, suppliers, investors, regulators, and communities all offer different perspectives on what matters most.

This stage transforms materiality from an internal exercise into a shared understanding of priorities. Stakeholder input helps reveal where business assumptions diverge from external expectations, and where reputational, operational, or social risks may be underestimated.

Clear documentation of this engagement is increasingly expected by regulators and assurance providers.

Read more: Sustainability at Davos 2026: Pragmatism Meets Planetary Limits

The Climb: Impact and Financial Assessment

The climb is where materiality becomes analytical. Organisations assess each topic through two lenses:

The impact of the company on people and the environment
The financial risks and opportunities those topics create for the business
This dual perspective is especially important as double materiality becomes a regulatory requirement in several jurisdictions. Scenario analysis, risk mapping, and financial modelling often come into play at this stage.

The climb filters a long list of issues into a smaller set of high-significance topics.

The Ridge Line: Prioritisation and Mapping

At the ridge line, companies compare issues against one another and rank them by relative importance. This is where materiality matrices, heat maps, and prioritisation frameworks are most commonly used.

The outcome is clarity. Leadership teams can see which issues demand immediate action, which require monitoring, and which are lower priority. Importantly, this stage supports internal alignment across sustainability, finance, risk, and strategy teams.

The Summit: Strategy and Disclosure Integration

Reaching the summit means materiality is no longer theoretical. The most significant topics are embedded into business strategy, targets, governance structures, and disclosures.

At this stage, material topics influence capital allocation, executive incentives, risk management, and long-term planning. Reporting becomes more focused and decision-useful, rather than a broad catalogue of ESG activity.

For regulators, investors, and boards, this is where materiality demonstrates its value.

Why the Materiality Journey Matters?

Treating materiality as a journey rather than a one-off exercise improves credibility, compliance, and strategic relevance. It helps organisations move beyond surface-level ESG reporting toward integrated decision-making that reflects real risks and impacts.

The Materiality Mountain reminds companies that meaningful ESG outcomes are reached step by step, through structure, engagement, and discipline, not shortcuts.

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