Why ESG materiality assessment matters for organisations in Oman
Organisations face a growing range of ESG expectations from investors, lenders, regulators, customers, employees and communities. Materiality assessment provides an evidence-based way to determine which sustainability issues deserve the greatest management attention and should be reflected in ESG strategy, targets, governance and reporting.
For listed companies, materiality also supports more focused sustainability reporting under Muscat Stock Exchange (MSX) ESG disclosure requirements. As sustainability reporting in Oman develops further, organisations need stronger processes for identifying, evaluating and documenting ESG risks, opportunities and stakeholder priorities.
Materiality can also help organisations connect their ESG agenda with broader economic and sustainability priorities under Oman Vision 2040, while ensuring that targets remain relevant to the organisation's sector, operations and commercial objectives.
How BDO Oman can help with materiality assessment and stakeholder engagement
BDO Oman helps organisations establish a structured, evidence-based materiality process tailored to their business model, sector, stakeholders and reporting objectives. We combine stakeholder engagement, ESG analysis, peer benchmarking and recognised sustainability frameworks to determine which topics should receive strategic and reporting priority.
BDO Oman helps you to:
- Identify and prioritise key internal and external stakeholder groups
- Conduct materiality assessments aligned with GRI Universal Standards and relevant ESG reporting requirements
- Engage internal and external stakeholders to understand their ESG priorities, concerns and expectations
- Design and conduct stakeholder surveys, interviews and workshops
- Assess ESG topics based on their relevance to the organisation and its stakeholders
- Consider MSX ESG disclosure metrics when identifying and evaluating priority topics
- Benchmark material ESG topics against sector, regional and relevant peer practices
- Develop a clear materiality matrix supported by a documented methodology
- Translate materiality outcomes into ESG strategy, targets, governance and reporting priorities
- Establish a process for periodically reviewing material topics as business conditions and stakeholder expectations evolve
Our approach to ESG materiality assessment
A credible materiality assessment requires more than a stakeholder survey. BDO Oman follows a structured process designed to connect stakeholder expectations with business realities, ESG risks and opportunities and relevant reporting requirements.
1. Identify relevant ESG topics
We review the organisation's business model, operations, value chain, sector characteristics, existing ESG performance and applicable reporting frameworks to develop an initial universe of potentially relevant ESG topics.
2. Identify and engage stakeholders
We identify the internal and external stakeholder groups most relevant to the organisation and determine appropriate methods of engagement. Depending on the organisation and assessment objectives, this may include surveys, interviews, workshops and consultations with management, employees, investors, customers, suppliers and other stakeholders.
3. Assess material topics
We evaluate ESG topics using defined criteria to understand their significance to the organisation and its stakeholders. The assessment can incorporate business impact, stakeholder expectations, sector trends, regulatory developments and relevant sustainability reporting frameworks.
4. Prioritise and validate
Material topics are prioritised using the agreed methodology and validated with relevant management and governance stakeholders. The results can be presented through a materiality matrix or another appropriate prioritisation framework.
5. Integrate the findings
We help translate materiality findings into practical actions, including ESG strategy, targets, KPIs, governance responsibilities, risk management priorities and sustainability reporting.
What can an ESG materiality assessment help your organisation achieve?
A well-designed materiality assessment provides management with a defensible basis for deciding where to focus ESG resources, investment and reporting effort.
- Focus ESG investment and management attention on the issues most relevant to the organisation
- Strengthen the connection between ESG priorities and overall business strategy
- Improve the relevance and credibility of sustainability reporting
- Identify emerging ESG risks, opportunities and stakeholder expectations earlier
- Establish clearer priorities for ESG targets, KPIs and governance
- Support more informed discussions with investors, lenders, regulators and other stakeholders
- Reduce the risk of pursuing ESG initiatives that have limited strategic or stakeholder relevance
- Create a stronger evidence base for future ESG decision making
Materiality assessment tailored to your sector
Material ESG topics vary significantly by industry. A financial institution, oil and gas business, industrial manufacturer, utility and real estate organisation should not be expected to have identical ESG priorities.
BDO Oman brings cross-industry ESG experience to help organisations assess materiality in the context of their operating environment, sector-specific risks and stakeholder expectations.
- Financial services — topics may include sustainable finance, customer protection, financial inclusion, data security, governance and climate-related financial risk
- Oil and gas — priorities may include emissions, energy transition, occupational health and safety, biodiversity, water, communities and supply chain impacts
- Aluminium and steel — material topics may include carbon intensity, energy consumption, occupational safety, responsible sourcing and supply chain requirements
- Power and electricity — priorities may include energy transition, emissions, infrastructure resilience, water use and service reliability
- Real estate — material topics may include energy efficiency, building performance, climate resilience, community impact and responsible development
What is the difference between materiality and double materiality?
Materiality approaches vary depending on the purpose of the assessment and the reporting framework being applied.
Impact materiality considers an organisation's significant actual and potential impacts on the economy, environment and people. Financial materiality considers sustainability-related risks and opportunities that could affect an organisation's financial performance or prospects.
Double materiality considers both perspectives together. The appropriate approach depends on your reporting obligations, stakeholder expectations, international exposure and chosen sustainability reporting framework.
BDO Oman can help organisations determine the materiality approach that is most appropriate for their reporting objectives and ESG maturity.
What you receive from a materiality assessment
The specific outputs depend on the scope and complexity of the engagement, but may include:
- Stakeholder identification and prioritisation
- Stakeholder engagement plan
- ESG topic universe
- Sector and peer benchmarking
- Stakeholder survey, interview or workshop findings
- Prioritised list of material ESG topics
- Materiality matrix
- Documented assessment methodology and prioritisation criteria
- Recommendations for ESG strategy and reporting
- Recommended ESG KPIs, targets and next steps, where relevant
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