Financial materiality

1. Financial reporting - risk management - ESG - sustainability reporting - European Sustainability Reporting Standards (ESRS).

In the context of sustainability reporting, European Sustainability Reporting Standards (ESRS) define a sustainability matter as material from a financial perspective if:

(i) It generates risks or opportunities that affect (or could reasonably be expected to affect) the undertaking’s

(ii) Financial position, financial performance, cash flows, access to finance or cost of capital

(iii) Over the short, medium or long term.

(Source - Annex 2 - abbreviations and definitions - supplementing Directive 2013/34/EU of the European Parliament and of the Council as regards sustainability reporting standards - European Commission.)

2. Financial reporting - risk management.

More broadly, any assessment of materiality from a financial point of view.

See also

• Assurance
• Audit
• Double materiality
• Double materiality assessment
• ESG
• European Commission
• European Financial Reporting Advisory Group (EFRAG)
• European Sustainability Reporting Standards (ESRS)
• Financial reporting
• Guidance
• Guide to risk management
• Immaterial
• Impact
• Impact materiality
• Material
• Material by nature
• Materialistic
• Materiality
• Materiality assessment
• Risk
• Risk management
• Sustainability
• Sustainability reporting
• Sustainability statement

Other resources

• Annex 2 - abbreviations and definitions - supplementing Directive 2013/34/EU of the European Parliament and of the Council as regards sustainability reporting standards - European Commission
• EFRAG Implementation Guidance - Materiality Assessment