Assessing Materiality in Sustainability Reporting

Materiality determines what information goes into sustainability reports. It follows the US Supreme Court’s definition: information is material if omitting it would likely influence reasonable users’ decisions. There are two main approaches: GRI focuses on broad stakeholder impacts (impact materiality), while ISSB targets financial decision-making (financial materiality). The European ESRS integrates both in a "double materiality" framework. Dynamic materiality aims to make sustainability issues financially relevant.