Materiality

A sustainability matter is material if it meets the definition of impact materiality, financial materiality, or both.

In accounting and business, materiality refers to the concept of substantive significance, which aims to highlight information that is significant enough to influence the users of financial reports. These principles are crucial for the efficiency and relevance of financial reporting, as they filter out unimportant details and focus on what is essential. In corporate strategy, particularly in the area of sustainability management, materiality is often used to identify key issues that are relevant for corporate responsibility. The concept of “Double Materiality” expands this perspective by considering both the financial impacts on the company and the social and ecological impacts on stakeholders.

Overall, the term materiality illustrates the necessity of focusing on what is fundamentally important in the respective context, whether in philosophical considerations or in practical applications in business life.