This study aims to examine how listed firms in an emerging market identify, assess and prioritise material environmental, social and governance (ESG) issues. Specifically, it explores the tools, processes and stakeholder engagement mechanisms that underpin ESG materiality assessments among NSE-listed Indian firms.
The study adopts a two-phase qualitative research design. In Phase 1, a manual content analysis is conducted on Global Reporting Initiative (GRI)-based materiality matrices disclosed in the 2022–2023 sustainability reports of a purposive sample of 59 firms drawn from the top 500 NSE-listed companies. The analysis focuses on firms’ materiality assessment processes, materiality cycles and stakeholder engagement practices. In Phase 2, semi-structured interviews with sustainability managers and consultants associated with large NSE-listed firms are used to contextualise and enrich the documentary findings, providing practice-based insights beyond what is explicitly disclosed in sustainability reports.
The findings indicate a clear prioritisation of governance-related material topics, with business ethics, risk management and regulatory compliance emerging as the most frequently reported high-priority issues. Within the social dimension, employee development, customer welfare, occupational health and safety, corporate social responsibility, product quality and employee well-being are identified as the most salient topics. Environmental materiality is primarily centred on climate change, regulatory compliance, life-cycle assessment and natural resource management. Across all ESG dimensions, material topics are classified into high, medium and low importance categories based on disclosure frequency, revealing a stronger emphasis on governance and social concerns than on environmental issues.
This study contributes to the ESG and financial markets literature by providing fine-grained qualitative evidence on materiality assessment practices in an emerging market context. By combining manual content analysis with practitioner insights, the research advances understanding of how firms operationalise ESG materiality beyond mere compliance, highlighting the role of regulatory pressures and stakeholder expectations in shaping disclosure priorities.
