Materiality assessment

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

In the context of sustainability reporting, a materiality assessment is the process by which an entity determines material matters and material information to be reported on in its sustainability statement.

The materiality assessment is designed to identify all material impacts, risks and opportunities (IROs) to be reported, and also to exclude ones that are not material.

(Source - EFRAG Implementation Guidance - Materiality Assessment.)

For sustainability reporting purposes, a matter is material if it is either material from an impact perspective, or from a financial perspective.

In this context, this is the principle of double materiality.

2. Financial reporting - risk management - assurance - audit.

Similar assessment processes in other contexts.

See also

Other resource