TY - JOUR
T1 - Impact measurement and the conflicted nature of materiality decisions
AU - Hehenberger, L.
AU - Andreoli, Chiara
N1 - Publisher Copyright:
© 2024 Elsevier B.V.
PY - 2024/6
Y1 - 2024/6
N2 - Impact measurement (IM) is an important tool to understand how organizations generate non-financial value, including social and environmental impact. However, if impact is to be actionable, it needs to be considered material and thus included in decision-making. Nevertheless, diverging guidelines and directives around materiality generate confusion, presenting a challenge in linking IM to materiality decisions. This challenge becomes increasingly complex when we consider factors related to sustainability, as it involves the presence of numerous stakeholders, each with their unique perspectives. Understanding what holds significance for these stakeholders through active dialogue and engagement is paramount for meaningful IM. While the intricate nature of materiality has been widely acknowledged in the sustainability reporting literature, a dearth of studies explored the drivers of tensions related to impact materiality in the context of IM. Our study proposes four critical research directions to shed light on these tensions and provide valuable insights into this complex area. For instance, additional empirical studies are needed to assess how impact materiality from a multistakeholder perspective has been embedded in the organizational decision-making process.
AB - Impact measurement (IM) is an important tool to understand how organizations generate non-financial value, including social and environmental impact. However, if impact is to be actionable, it needs to be considered material and thus included in decision-making. Nevertheless, diverging guidelines and directives around materiality generate confusion, presenting a challenge in linking IM to materiality decisions. This challenge becomes increasingly complex when we consider factors related to sustainability, as it involves the presence of numerous stakeholders, each with their unique perspectives. Understanding what holds significance for these stakeholders through active dialogue and engagement is paramount for meaningful IM. While the intricate nature of materiality has been widely acknowledged in the sustainability reporting literature, a dearth of studies explored the drivers of tensions related to impact materiality in the context of IM. Our study proposes four critical research directions to shed light on these tensions and provide valuable insights into this complex area. For instance, additional empirical studies are needed to assess how impact materiality from a multistakeholder perspective has been embedded in the organizational decision-making process.
UR - http://www.scopus.com/inward/record.url?scp=85187987027&partnerID=8YFLogxK
U2 - 10.1016/j.cosust.2024.101436
DO - 10.1016/j.cosust.2024.101436
M3 - Review
AN - SCOPUS:85187987027
SN - 1877-3435
VL - 68
JO - Current Opinion in Environmental Sustainability
JF - Current Opinion in Environmental Sustainability
M1 - 101436
ER -