Financial reporting - risk management - materiality - climate change.
Materiality is a threshold at which insignificance becomes significance.
Materiality is also a fundamentally important concept in traditional financial accounting.
Relevant accounting standards, principles and disclosures need only be applied to material items.
Double materiality is a concept in climate reporting.
It extends the concept of material items to include not only (1) the impact of climate on the reporting company, but also - and additionally (2) the impacts of the company on the climate.
The consequence is that the nature and number of items that must be disclosed is significantly increased.