This Client Alert probes the ESG “materiality assessment” process, why it is a misnomer, when and how the assessment can be conducted, and legal and practical tips for conducting the assessment.

Companies have been conducting ESG “materiality” assessments in support of their ESG disclosures for a number of years now. An ESG materiality assessment can serve as a useful tool to identify areas of priority from the perspective of a company’s internal and external stakeholders, including shareholders, employees, customers, vendors, and community members. With ESG regulatory requirements on the rise and in light of the need to reduce the risk of blurring between regulatory definitions of “materiality” and socalled “ESG materiality assessment,” this Client Alert provides an overview of the ESG materiality assessment process and why it is a helpful tool, as well as tips for conducting the assessment.