Which two principles must be applied to identify material topics?

The Stakeholder Inclusiveness Principle and the Materiality Principle are essential for identifying material topics in the context of sustainability reporting.

The Stakeholder Inclusiveness Principle emphasizes the importance of engaging with a wide range of stakeholders to ensure their perspectives are considered. This interaction helps organizations understand which topics are significant to different stakeholder groups, ultimately guiding the reporting process to reflect their interests and concerns. By incorporating stakeholder feedback, organizations can identify which issues are viewed as material and matter most to those affected by their operations.

The Materiality Principle focuses on the necessity of recognizing and reporting on topics that reflect the significant economic, environmental, and social impacts of the organization, as well as those that would influence the decisions of stakeholders. This principle ensures that the reporting framework centers on issues that are relevant and impactful, thereby enhancing the utility and transparency of the report.

Together, these two principles provide a framework for organizations to determine which topics are not only essential to their sustainability performance but also resonate with the expectations and concerns of their stakeholders. By applying these principles, organizations can create comprehensive and meaningful reports that support accountability and foster improved stakeholder relationships.