Sustainability · Materiality

Sustainability materiality assessment process for issuers

Short answer

A materiality assessment determines which sustainability issues are important enough to report. The process: identify issues, engage stakeholders, assess and prioritize, then validate. It's important to distinguish impact materiality (GRI, the company's outward effect) and financial materiality (IFRS/PSPK, issues' effect on company value); together they are called double materiality.

Steps

Identify, list sustainability issues relevant to the sector and value chain.
Engagement, stakeholder input (investors, employees, community, regulators).
Assessment, rate impact and/or financial significance; prioritize.
Validation, management review and methodology documentation.

Two materiality lenses

Lens	Core question	Reference
Impact	How does the company affect society/environment?	GRI
Financial	How do sustainability issues affect value & performance?	IFRS S1/S2 → PSPK

Documenting the materiality methodology strengthens disclosure credibility, and eases assurance and readability for investors and machines.

Frequently asked questions

What is a materiality assessment?

The process of determining which sustainability issues are important enough to report, via identification, stakeholder engagement, assessment, and validation.

What's the difference between impact and financial materiality?

Impact materiality (GRI) assesses the company's effect on society/environment; financial materiality (IFRS/PSPK) assesses sustainability issues' effect on the company's value and performance.

What is double materiality?

An approach that considers both lenses, impact and financial, together.

Why document the methodology?

So issue prioritization is accountable and disclosure is credible, important for assurance and reader trust.

Official sources

GRI Standards, impact materiality.
IFRS S1/S2 (ISSB) → PSPK 1 & 2, financial materiality.
POJK 51/POJK.03/2017 (sustainability report).
Official references: OJK · IFRS Foundation (ISSB) · GRI · IAI (DSK)

Building a materiality assessment?

SAMCGI guides issuers and SOEs through materiality assessment and sustainability narrative, documented and traceable. We prepare the discipline, not promise outcomes.

17 Integrated Reports (2024–2025)GRI-standard clientsSince 1998

Discuss your materiality

Compiled June 2026 from official sources. Regulations and practices evolve; verify the latest OJK/IDX/IAI/KNKG provisions before making decisions. This page is informational, not legal or accounting advice.