About Materials Enginering and ESG Materiality
Despite the difference between the concepts of Materials and Materiality, the field of materials engineering plays a pivotal role in the realm of ESG (Environmental, Social, and Governance) materiality
Materials engineers play a crucial role in Environmental, Social, and Governance (ESG) materiality. Here are some key points:
- Material Selection: Materials engineers are responsible for selecting the best materials for specific purposes, such as those that are the lightest or most hard-wearing. This selection process can have significant environmental implications, particularly in terms of resource use and waste generation.
- Climate Change Adaptation: Physical climate risk is becoming more material as engineering and construction (E&C) companies will be required to design or construct assets that can withstand increasingly extreme weather and adapt foundations, structures, and materials to shifting climate patterns.
- Waste and Recycling: Waste and recycling are examples of factors currently more material for stakeholders than credit. Materials engineers can contribute to these areas by developing and implementing strategies for waste reduction and recycling in the E&C sector.
- Biodiversity and Resource Use: Key factors with higher stakeholder materiality than credit include biodiversity and resource use. Materials engineers can help manage these factors by selecting materials that minimize impact on biodiversity and make efficient use of resources.
- Human Capital-Related Factors: Working conditions and workforce health and safety are among the most material factors. Materials engineers can contribute to these areas by ensuring the materials used do not pose health and safety risks to the workforce.
About Materials and ESG Materiality
The relationship between materials and ESG Materiality is quite significant. Materials, being the substances used in the creation of a product or system, have direct implications on a company’s environmental, social, and governance (ESG) factors.
For instance, the choice of materials can impact the environment through waste generation, energy consumption, and carbon emissions. This is where ESG Materiality comes into play. It helps companies identify these impacts and manage them effectively
Moreover, companies with higher ESG scores, which often consider material use and its impacts, tend to perform better in terms of stock performance and underlying financial metrics This shows that the management of materials is not just an operational concern, but also a strategic one that can influence a company’s financial performance and reputation.
Final remarks
- Materials engineers can significantly influence a company’s ESG materiality through their work in material selection, waste management, climate change adaptation, and ensuring workforce health and safety. They can help companies navigate the complex landscape of ESG materiality, ultimately contributing to more sustainable and responsible business practices.
- In essence, the choice and management of materials are integral to a company’s ESG Materiality, influencing its sustainability performance and financial success.