The Humanverse Materiality Approach: A New Paradigm in Assessing ESG Risks

Insights

Feb 1

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In a world teetering on the brink of environmental and social thresholds, companies are under increasing pressure to align their operations with sustainable practices. Enter DevryBV Sustainable Strategies, a company that's redefining the way businesses engage with Environmental, Social, and Governance (ESG) risks through our proprietary 'Humanverse Materiality Approach'. Our engaging and unconventional method is not about ticking boxes; it's a transformative journey toward corporate authenticity and humanity-centric stewardship.

The Quest for Corporate Truth.

At the heart of DevryBV's unique approach lies the guiding principle of truth, which is inherent in our company logo, a circular logo with three rings that represent people, nature, and profit, a logo that is open, not closed, allowing the truth to flow in and out of companies as they learn more, discern more, engage more with those impacted by their business activities.

The quest for truth is about delving into the essence of the business—its core values, culture, operations, and impact on the broader canvas of society and nature. The process begins with introspection, as businesses must actively seek, face, and follow the truth. But it doesn't stop there. Remaining open to change and sharing truthfully with stakeholders is pivotal in comprehensively understanding the issue at hand and the extent of its materiality to both the company and people and nature.

Financial Impact and Beyond.

DevryBV challenges companies to confront two fundamental questions.

Firstly, "What is the financial impact of this specific issue on the company, and to what degree?" We probe a company's direct and indirect financial repercussions on an environmental, social, or governance issue. It's not solely about the bottom line; it's about understanding how sustainability risks factor into long-term profitability, brand equity, reputation, and shareholder and stakeholder value.

Secondly, "How do the business activities of the company on this specific issue impact people and nature, and to what degree?" This question extends the scope of impact beyond the confines of the company, encouraging a broader view of how a company’s actions resonate through ecosystems and communities.

The “Shared Issues Stack.”

A key element of the Humanverse Materiality Approach is the concept of a 'shared issues stack'. This stack is a visual and strategic tool that merges the company's priorities with those of its stakeholders. The issues that the company may deem as peripheral, but which stakeholders find critical, are also placed on the company's agenda. The shared issues stack ensures a holistic view of materiality, one that encompasses a wide array of concerns from all relevant parties.

Each company’s shared issue stack is unique to its business. In the graphic below, some issues have been identified for illustrative purposes. The issues in the stack should not be considered all negative to a company, and in fact, can demonstrate where the company is also making positive strides that stakeholders care about.

Continuous Conversation, Continuous Sustainable Improvements.

DevryBV insists that materiality is not a static state but a dynamic process. Therefore, a continuous dialogue with stakeholders is essential. This ongoing conversation ensures that materiality assessments remain relevant, reflective of current realities, and responsive to the evolving landscape of risks and opportunities.

ESG reporting requirements are mounting for reasons of regulatory compliance, shareholder and investor expectations, and changing customer preferences. Therefore, conducting materiality assessments is a business continuity and license-to-operate issue that also results in the company making continuous sustainable improvements in their practices, processes, capital allocation, services, and products.

A Proprietary Approach with a ESG Vivid Twist.

Our proprietary approach of DevryBV is encapsulated above in an engaging and colorful graphic that accompanies The HumanverseTM materiality assessment. The shared issues stack, presented in the middle of this graphic in colorful jewel-toned boxes, symbolizes the diverse range of challenges a company must evaluate. Issues are categorized into ESG materiality issues by color with green representing environmental challenges, blue, social, and deep teal, governance issues. The shared issues stack can get as unwieldy for a company as a fierce game of JengaⓇ if not carefully managed.

Our vivid portrayal of a “shared issues stack” is not just aesthetic; it indicates DevryBV's mission to inspire companies to courageously serve humanity by integrating sustainability and ESG into their business strategies. It's about finding new perspectives on old problems and pioneering innovative solutions.

Energizing the Corporate Approach to ESG.

DevryBV doesn't just streamline the ESG assessment process—it infuses it with energy and purpose. By engaging companies in a manner that is as enlightening as it is efficient, The HumanverseTM Materiality Approach is setting a new standard for Double and Dynamic Materiality. DevryBV's approach serves as a functional tool for companies to visualize and prioritize regular and comprehensive risk assessments.

As the business world grapples with the urgency of sustainable transformation, The HumanverseTM Materiality Approach stands out as a beacon of innovative thinking. It's a call to action for companies to redefine their impact on the world, ensuring that they not only prosper but also preserve and nurture the fabric of our shared ‘humanverse.’