Australia is at a turning point in its sustainability journey
From infrastructure and construction to energy, agriculture and corporate governance, every sector is being asked to deliver more with less. Organisations are being challenged to find smarter, faster and more cost-effective ways to reduce their impact, or better yet, enhance outcomes across the quadruple bottom line (environmental, social, economic and governance).
Yet with so many tools, standards and frameworks already in play, decision makers often struggle to identify the right priorities. Which issues should be tackled first? Where will investments deliver the most meaningful impact? And how can sustainability be integrated at both project and organisational levels?
In this article, our team explores how our materiality matrix can support your sustainability strategy.
The challenge is defining what really matters
Government regulation is tightening, with requirements for disclosure and reporting becoming more rigorous each year. Investors are looking closely at environmental, social and governance (ESG) performance before committing capital. Communities, too, are expecting greater transparency and leadership from the organisations they engage with.
Our clients are a practical bunch. When they turn their minds to sustainability, they want to focus on actions with direct environmental benefits, as well as supporting communities and their business’ success.
Scott Losee
But the challenge lies in navigating competing demands: reducing costs, improving efficiency, ensuring compliance and delivering tangible environmental and social benefits. Too often, organisations face a scattergun approach, tackling issues in isolation rather than addressing them through a connected system. Without a clear framework to guide priorities, many organisations risk expending significant effort without generating the outcomes that matter most.
How a systematic tool has proven to solve it
Drawing on decades of industry experience, Losee Consulting has developed a systematic process to assist with decision making. We adapt this systems-based approach to suit client needs at both organisational and project levels (and at various project stages) to identify where attention and resources are best directed.
At the heart of the process is a risk and opportunity assessment that spans the full spectrum of sustainability drawing on industry developed tools including:
By embedding these trusted methodologies, the tool provides a robust and credible foundation for decision making.
A key feature of the Materiality Matrix is the development of a materiality plot. This plot functions in two powerful ways:
Identifying focal points: Highlighting the sustainability issues that matter most to both the system and its stakeholders.
Guiding strategies: Helping teams develop actionable pathways to deliver outcomes that genuinely move the needle.
The Materiality Matrix can be adapted to diverse circumstances, whether that be performance planning, reporting or monitoring, be used to further develop opportunities with wider stakeholders and create measurable targets.
Measurable outcomes for Australian organisations
The result is a process that simplifies complexity, engages stakeholders and accelerates meaningful outcomes. Whether you are building a business case, planning a new project or advancing organisation-wide sustainability strategy, the tool equips teams with the insights needed to focus on what matters most.
Losee Consulting’s sustainability tools are designed to help Australian organisations cut through complexity and take decisive action. By applying a structured, systems-based approach, you can identify opportunities, reduce risk and deliver measurable sustainability outcomes.
Materiality for climate-related disclosures slightly different
While materiality assessment process we’ve described above is a well-established practice for sustainability strategy, materiality has a narrower and more precise interpretation under the AASB S2 Climate-related Disclosures.
Indeed, the notion of materiality in sustainability derived from the accounting-related concept, where, for example, the Global Reporting Initiative sought to elevate the influence of sustainability considerations in business and investment decision making.
AASB S2 requires obligated businesses to disclose ‘material information’ about climate-related risks and opportunities.
This standard defines materiality as, ‘An entity-specific aspect of relevance based on the nature or magnitude, or both, of the items to which the information relates, in the context of the entity’s climate-related financial disclosures’ — in short, what do things mean ultimately from a financial perspective.
A broader take on materiality for sustainability is still useful for obligated businesses; however, they must follow this stricter definition in their formal disclosures.
Download Losee Materiality Matrix
We have prepared a complimentary ‘starter version’ of our Losee Materiality Matrix. To access this matrix simply complete the form and subscribe to our newsletter.
Privacy Policy
Mark Sawatzki
BEng (Enviro), RABQSA, ISAP
With over 15 years’ experience, Mark specialises in environment and sustainability management for major building and civil projects. He ensures environmental processes exceed compliance, delivers reporting and training, and conducts site checks to maintain ISO 14001 standards. Mark works closely with site teams to embed sustainability best practice.