Materiality Assessment as a Governance Lens for the Twin Transition: A Cross-Sector Analysis

Authors

DOI:

https://doi.org/10.34190/ecmlg.22.1.5587

Keywords:

materiality assessment, twin transition, circular economy, stakeholder engagement, ESG reporting

Abstract

The European Union’s Twin Transition agenda encourages organizations to integrate both digitalization and circular economy principles into their core sustainability strategies. How companies reflect these two dimensions through their materiality processes and how stakeholder engagement contributes to such prioritization represents a rich area for empirical investigation. This study examines how Italian sustainability leaders operationalize the twin transition through materiality assessment and CEO strategic communication, using content analysis of sustainability reports published by Sustainability Leader companies across different sectors: service-oriented sectors and manufacturing-intensive sectors. The analytical framework operates at two complementary levels: materiality assessment, explored through explicit topic identification, disclosure depth, and the relationship between stakeholder engagement and materiality outcomes; and CEO letters, examined as strategic signaling instruments that reveal which twin transition themes top management considers most salient. Findings reveal a systematic cross-sector pattern in how circular economy and digital transformation are embedded as material topics, shaped by sector-specific strategic and regulatory contexts. CEO messages further illuminate the strategic framing of twin transition priorities, offering insight into the narratives through which leaders anchor sustainability commitments. Stakeholder engagement quality appears broadly consistent across sectors, suggesting that thematic differentiation is driven more by industry-specific pressures than by differences in engagement practices. These patterns offer valuable insights into how materiality processes and executive communication jointly translate the twin transition agenda into corporate sustainability priorities, and what this implies for the inclusiveness and balance of sustainability decision-making among acknowledged reporting leaders. The study contributes to the governance and ESG literature by advancing understanding of materiality assessment and CEO communication as interconnected strategic governance instruments.

Author Biographies

Tamara Menichini, University of Rome Niccolò Cusano

Tamara Menichini, Ph.D., is Associate Professor of Business and Management Engineering at the University of Rome “Niccolò Cusano”. Her research focuses on corporate sustainability and Multi-Criteria Decision Making (MCDM) methods integrating environmental, economic, and social assessments to support sustainability management and reporting. She contributes to national and international research projects.

Stefania Roberta Miccoli, University of Rome Niccolò Cusano

Stefania Roberta Miccoli, is Ph.D. student in Territory, Innovation and Sustainability at University of Rome “Niccolò Cusano”. She holds a Classical high school diploma, a Conservatory Diploma in Piano, a Master’s degree in Economics and Management, and postgraduate qualifications in Counselling, and in Teaching. As a graduate of LUM University, she developed interests in academic research, teaching, and publishing in human resource management and business organization. Since 2014, she works in education and training as a coordinator, designer, and counsellor. Her research focuses on sustainability and gender equality at both macro-level dynamics (communities) and micro-level processes (organizational and business contexts).

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Published

2026-10-26

Issue

Vol. 22 No. 1 (2026): The Proceedings of the 22nd European Conference on Management Leadership and Governance (ECMLG 2026)

Section

Academic Papers