The SDG at the service of the materiality assessment : an exploratory study

Details

Supervisors

Swaen, Valérie

Faculty

Louvain School of Management

Degree label

Master [120] : ingénieur de gestion, à finalité spécialisée

Abstract

This master’s thesis is an exploratory study around the notions of materiality and the UN's Sustainable Development Goals. It aims to explore the effects of integrating the SDG into the materiality assessment process for companies, following the emergence of the concept of materiality and the new European directive on non-financial reporting (2021). Based on qualitative data collected in semi-directive interviews and analysis of companies reports, this study raises the possibility of cooperation between these two concepts and advantages of integrating the SDG into materiality assessment. The materiality assessment process is often complex for companies on several levels, both theoretically and practically. Integrating the SDG at the beginning of the process, on the one hand, provides structure and a universal framework for companies. As the SDG are seen as universally material issues, this list simplifies the screening process before consulting stakeholders. The integration at the end of the process, on the other hand, allows to establish a sustainable development strategy that gathers and motivates the company and its stakeholders by increasing the internal adhesion. The SDG, due to their notoriety and the communication made around them for the past six years, have a direct influence on the materiality assessment, whether implicitly or explicitly. However, certain factors can accelerate or slow down the effects of this integration. These include the education around the SDG within the company, but also the contextualization of each objective according to the sector of activity and the company's reality. Therefore, when a company decides to integrate the SDG into its materiality assessment, it is important not to do so only on the surface in order to avoid an immature use of this framework, which could lead to the effects being reversed. In conclusion, the integration of SDG in the materiality analysis is interesting because it allows for several advantages. However, this framework should be used as a complement to the robust methodology of the materiality analysis and not instead of it.