Rethinking Materiality in a Changing World

By Omar Hadjel MCIM Sustainability Consultant | Strategic Adviser | Bid Support Specialist

In a world where once-solid assumptions are crumbling at speed, the question is no longer if materiality will shift—but when, how fast, and how well your organisation can adapt.

In March 2025 alone, we’ve seen the collapse of several long-standing trade agreements, growing tensions between emerging economic blocs, rapid redefinitions of sustainability standards in the EU and Asia-Pacific, and volatile swings in the global carbon market. The old certainty that an annual materiality assessment is “good enough” is now itself outdated.

The pace of change across sectors is accelerating—faster than at any point in modern business history. The collective global agenda—from decarbonisation to digital transformation—is evolving in real time. Beliefs are shifting. Consumer expectations are mutating. Governments are re-writing procurement rules and redefining regulatory thresholds at breakneck pace. Entire industries are being reimagined—some reborn, others retired.

Yet many organisations still conduct ESG and strategy reviews only once a year—if at all.

Materiality as a Living Practice

The cost of sticking to old rhythms is rising. Static reviews and legacy thinking are being outpaced by real-time disruption. This is where materiality must evolve—from a static snapshot to a living, breathing practice.

A modern materiality assessment must reflect not just what matters, but what matters most right now, and what’s emerging as the next priority.

Assuming that the ESG issues, risks, and opportunities identified in Q1 2024 still apply unchanged in Q2 2025 is, frankly, dangerous. Without systems of continuous sensing and adaptation, organisations are flying blind.

Even within a single quarter, dramatic changes in the geopolitical, technological, environmental, or societal landscape can upend yesterday’s strategic plans.

The shelf-life of insight is getting shorter.

From Reaction to Anticipation: The New Currency of Leadership

Organisations need to develop the capability for strategic vigilance—powered by real-time listening and multidisciplinary sense-making. What was once a luxury—market intelligence and horizon scanning—is now a baseline requirement for survival.

This doesn’t mean chasing every headline. It means investing in:

• Dynamic resources who track shifts in regulation, customer sentiment, and innovation
• Skills in market sensing and insight analysis
• Leadership openness to adapt quickly—even when the boardroom comfort zone is disrupted

The most astute business leaders in 2025 are building agile foresight into their DNA—assembling teams and structures including impartial external advisers that allow them to anticipate rather than react.

The Rise of Market-Sensing & Knowlege Management

We are seeing the strategic rise of Knowledge Management roles across sectors—and rightly so.

No longer limited to managing internal databases, these roles are becoming the linchpin of strategy. They connect the dots between external disruption and internal decisions. They are becoming the glue between risk, innovation, and competitiveness.

Astute leaders now recognise that early detection of threats and opportunities isn’t just about risk management—it’s the foundation of long-term advantage.

And it’s not about one-off workshops or annual reviews. The real edge lies in constant dialogue, cross-functional learning, and empowered decision-making.

Start with a Strategic Intelligence Cell

We recommend a practical first step: form an internal Strategic Intelligence Circle—an Early Warning System (EWS) built for agility.

This group should:

• Include representatives from strategy, finance, procurement, marketing, HR, operations, sustainability and external advisers
• Be tasked with continuously scanning external developments—policy changes, innovations, shifts in sentiment, competitor activity
• Meet monthly (or ideally weekly) to interpret external signals and discuss potential internal implications
• Have a clear pathway to escalate insights to leadership for immediate or future strategic action

This isn’t a task force. It’s your in-house organisational radar—constantly recalibrating your organisation’s priorities in response to a fast-changing world.

Agility as a Governance Principle

In 2025, governance must go beyond compliance. It must be dynamic, responsive, and proactive. Organisations need systems that are flexible, reflexive, and open to questioning long-held assumptions and partnerships.

We are past the era of steady-state planning. Organisations that fail to detect and respond to material shifts in real time risk being outpaced by more adaptive and alert competitors.

Materiality is the orgnisational compass. Keep it sharp. Consult it often. And most importantly, ensure your organisation knows how to interpret its signals and navigate by them with confidence.

About the Author

Omar Hadjel MCIM is a strategic consultant and sustainability adviser. He supports organisations in building resilience, winning public sector contracts, and integrating social value and sustainability into competitive advantage.