A comparison ofimpact vs financialmaterialityassessments

Avoid partial reporting. Only reviewing financial exposure misses community and environmental impacts stakeholders care about.

Improve resilience. Comparing lenses early reveals risks and opportunities before they affect revenue or reputation.

Prepare for double materiality. Understanding each lens independently makes dual-lens assessments faster.

1. Define criteria upfront List the scoring factors for each lens so teams do not mix signals midstream.
2. Use shared data rooms Keep qualitative and quantitative evidence together so both lenses access the same inputs.
3. Align storytelling Document how learning from one lens changes assumptions for the other to avoid conflicting narratives.

1. Score separately Assign impact and financial scores before blending them, so trends stay visible.
2. Highlight gaps Flag topics with high impact but low financial scores (or vice versa) for leadership discussion.
3. Track remediation Note which initiatives close the gap between impact and financial exposure.
4. Update matrices Publish refreshed matrices or dashboards so stakeholders see how lenses evolve.

Inside-out lens. Another name for impact materiality—how the organisation affects society or the environment.

Outside-in lens. Another name for financial materiality—how ESG issues affect enterprise value.

Bridging narrative. The explanation that links both lenses into one decision-making storyline.