Betty Huber, partner at Latham & Watkins LLP, sat down for a video interview at Nareit’s REITworks: 2024 Sustainability & Social Responsibility Conference, held in McLean, Virginia from Sept. 10-12.
Huber discussed the significance of materiality assessments for organizations, emphasizing that they are not merely procedural requirements for reporting; they are essential for shaping a company's strategy and managing risks effectively. By understanding materiality, businesses can better respond to the needs of various stakeholders, including investors, employees, and the communities they serve.
Huber highlighted a shift from a solely investor-driven focus to a broader stakeholder governance model, where companies recognize the importance of multiple stakeholders in their operations. She noted that employees and community wellbeing are critical, as neglecting these areas can jeopardize a company's license to operate.
Meanwhile, Huber identified key themes shaping the materiality landscape, particularly in supply chain management. Companies are now more concerned with human rights issues and environmental impacts related to their suppliers, ensuring adherence to ethical standards such as preventing forced labor and child labor.