ESG Materiality Assessment Key to Unlocking Investor Funding, Says Deloitte Partner
Takeaways
- Deloitte Ghana’s Assurance Partner urges African institutions to adopt ESG Materiality Assessments to attract investor interest and unlock potential funding.
- Investors increasingly prioritize impact-driven disclosures, making accurate identification of material ESG issues essential.
- Speakers at the ACCA Annual Conference highlighted the need for shared sustainability frameworks to boost reporting quality and competitiveness across Africa.
Institutions across Africa must prioritize ESG Materiality Assessment if they want to secure new funding and strengthen their sustainability performance, according to Dr. Kwabena Situ, Assurance Partner at Deloitte Ghana.
Speaking during a panel session at the ACCA Annual Conference in Kenya, Dr. Situ said investors are increasingly focused on how organizations identify and respond to their most significant ESG issues, making the assessment process a crucial step in meeting market expectations.
An ESG Materiality Assessment is a structured process that helps institutions identify, evaluate, and rank the most relevant environmental, social, and governance risks and opportunities tied to their operations and stakeholders. Dr. Situ noted that this assessment forms the backbone of a strong sustainability strategy, risk management planning, resource allocation, and transparent ESG reporting.
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He stressed that organizations implementing sustainability frameworks cannot produce meaningful disclosures without first determining their material ESG topics. “Materiality Assessment is one of the key activities to be carried out by organizations 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,” he said.
Dr. Situ emphasized that the “focus of ESG reporting is the investors,” adding that clear communication of material issues earns investor confidence and often increases access to sustainability-linked funding. “If 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 stated.
He also pointed to the European sustainability reporting framework as a strong benchmark, noting that it incorporates both impact materiality (how an organization affects society and the environment) and financial materiality (how ESG issues affect organizational performance). This dual approach, he said, supports clearer and more comparable disclosures.
The conference session, which brought together regulators and professional bodies, focused on strengthening Africa’s sustainability standards adoption. Speakers highlighted the need for collaboration among institutions, shared frameworks, and consistent guidance to help organizations improve ESG reporting, enhance comparability, and build preparedness for evolving global standards.
As African markets work to position themselves competitively, experts agreed that better alignment on reporting practices, anchored in robust materiality assessments, will be essential for attracting responsible investment and supporting long-term growth.
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Source: myjoyonline
