Deloitte says ESG materiality assessment unlocks funding
Dr. Kwabena Situ, Assurance Partner at Deloitte Ghana, urged institutions to adopt an Environmental, Social and Governance (ESG) Materiality Assessment as a gateway to unlocking investor funding.
Speaking on a panel at the Association of Certified Chartered Accountants (ACCA) Annual Conference in Kenya, Dr. Situ highlighted that the assessment helps organisations pinpoint the ESG issues that matter most to investors, making those issues reportable and fundable.
He explained, “Materiality Assessment is one of the key activities to be carried out by organisations implementing ESG. The purpose of the Materiality Assessment is to be able to identify topical issues to report on. So, without a proper materiality assessment, you cannot have topical issues to report, which are issues of interest to investors,”.
“The focus of ESG reporting is the investors. If the investors get to know what topical issues you [institution] are dealing with, they will be interested in them. So, you can also receive your funds,” he added.
An ESG Materiality Assessment involves identifying, evaluating and prioritising the most significant ESG risks and opportunities that affect an institution’s operations and stakeholders. The process underpins sustainable strategy, risk management, resource allocation and transparent reporting.
Dr. Situ praised the European sustainability framework for encompassing both impact materiality and financial materiality, describing it as the appropriate tool for African entities seeking credible ESG disclosures.
The plenary session on sustainability standards brought together regulators, professional bodies and industry leaders to discuss how Africa can strengthen reporting practices, ensure comparability and boost market preparedness.
Speakers called for collaborative guidance and shared frameworks that balance compliance with competitiveness, urging Ghanaian institutions to embrace the materiality approach to attract global capital.
Image Source: MYJOYONLINE
