Characterizing sustainability materiality: ESG materiality determination in technology venturing

Abstract

This study posits that technology actors and stakeholders hold different intentions for sustainability interests. This dissimilarity between sustainability intentions determines the strategic choice of materiality setting adopted when disclosing non-standardized (i.e. non-financial) data to the public in order to reach unbiased sustainability decisions. Inherently, non-standardized data is contextually specific and dynamic, especially in the technology innovation and venturing contexts. Materiality should have rationality and detailed characterization; as such, highly visible sustainability values and concomitant challenges can be addressed thoroughly. Based on institutional and social psychology perspectives, this study proposes a materiality characterization model that connects four thematic dimensions: reflexivity, proximity/immediacy, centrality, and materiality morality. The materiality characterization model helps to determine materiality contents and disclose collective sustainability interests in technology advancement and entrepreneurship. To investigate this connection, we conducted industrial interviews in over 13 technology-innovation and technology-venturing cases, and we applied a recursive induction analysis to make conclusions based on the findings. The results indicate the importance of sustainability materiality for social dialogues – a bottom-up social governance for technology advancement. In conclusion, we affirm that the characterization model acts as a meta-technology to propel sustainable innovation and venturing.