Material impacts (see also definition of Impact) in the context of these Standards:

• are those impacts that affect the wellbeing of Stakeholders (see also definition of Stakeholders) experiencing them
• and that would influence decisions of the entity acting in the interest of those Stakeholders, to maximise wellbeing and achieve sustainability and the SDGs by 2030
• taking into account the sustainability risks and opportunities that are most significant for the entity's own value creation, because strong, resilient, and sustainable entities will have more capacity to contribute positively to sustainable development and the SDGs.

Having a formal assessment process to determine which impacts are material helps entities identify which impacts to prioritise and manage to optimise their contribution to sustainability and achievement of the SDGs and maximise well-being of people and planet.

United Nations Development Programme. (2021). SDG Impact Standards Glossary. https://sdgimpact.undp.org/assets/SDG-Impact-Standards-Glossary.pdf