Stakeholder engagement is a core component of ESG strategy and sustainability reporting under ESRS. It is a structured communication process between a company and the individuals or groups that influence or are affected by its operations. The goal is to build trust, identify expectations, and gather insights that support ESG compliance, risk mitigation, and long-term value creation. Engagement activities include stakeholder mapping, workshops, qualitative interviews, and needs assessments. With GCB’s support, organizations receive a comprehensive stakeholder engagement report, strategic recommendations, and awareness-raising ESG workshops.

Table of contents

  1. What is stakeholder dialogue?
  2. What is the purpose of stakeholder engagement?
  3. Why is stakeholder dialogue important in ESG?
  4. What does the stakeholder engagement process involve?
  5. What are the benefits of stakeholder engagement?

What is stakeholder dialogue?

Stakeholder dialogue is a continuous communication and information exchange process between an organization and groups or individuals who influence or are influenced by its operations. In the ESG context, it is a critical tool for identifying material sustainability topics and managing ESG-related risks and opportunities.

What is the purpose of stakeholder engagement?

The main objectives of stakeholder engagement include:

  • Identifying stakeholder expectations, risks, and concerns,
  • Co-developing a sustainability strategy aligned with ESG principles,
  • Building trust and transparency,
  • Fulfilling disclosure requirements under ESRS S1 and G1.

Why is stakeholder dialogue important in ESG?

ESRS requires companies to engage stakeholders to ensure transparency and relevance of reported ESG data. Stakeholder dialogue is directly linked to double materiality assessment – only through meaningful engagement can a company determine which ESG topics are financially and socially material. This ensures that ESG indicators are appropriately selected and justified, minimizing the risk of greenwashing and improving audit readiness.

What does the stakeholder engagement process involve?

  1. Stakeholder mapping: identifying relevant groups based on departments and ESG exposure (e.g. customers, suppliers, local communities).
  2. ESG workshops: involving employees and management in stakeholder analysis and expectation mapping.
  3. Research tools: designing surveys, interview guides, and structured questionnaires.
  4. Qualitative and quantitative analysis: conducting interviews, analyzing responses, and deriving data-driven conclusions.
  5. Reporting and recommendations: delivering a final report including identified risks, key findings, and action plans.

The entire process is conducted in alignment with due diligence principles and ESRS guidelines.

What are the benefits of stakeholder engagement?

  • Aligning ESG strategy with actual stakeholder needs
  • Improving credibility and transparency for investors and regulators
  • Proactively managing social and environmental risks
  • Meeting non-financial reporting requirements (ESRS S1)
  • Demonstrating due diligence during ESG audits and reviews