Materiality of ESG KPIs: a perspective from Brazil

Materiality of ESG KPIs - Brazil

The PRI has released Materiality of ESG KPIs: a perspective from Brazil, exploring how material various ESG KPIs are across sectors for Brazil-based companies. The Summary Report contains the key results and conclusions, and the full report provides additional detail and the full dataset.

Before investors can integrate environmental, social and governance (ESG) factors into their decision-making process, they require access to sustainability information that is likely to impact company valuations. Although there is a general consensus over the overall set of key performance indicators (KPIs) that can be applied to measure ESG performance, it is important to take stock of geography and sector differences when selecting and analysing ESG KPIs.

We look at the materiality (defined in this paper as the likelihood of affecting corporate financial performance) of different ESG KPIs for Brazil-based companies, as seen by leading Brazilian investors. Our aim is to understand how ESG KPI materiality differs between sectors in Brazil.