In the evolving landscape of sustainability reporting, materiality has emerged as a cornerstone concept, particularly within the framework of the International Financial Reporting Standards (IFRS) Sustainability Standards (IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2: Climate-related Disclosures).
IFRS S1 and S2 are pivotal standards that guide companies in disclosing information about sustainability-related risks and opportunities as well as risk and opportunities related to climate that could reasonably be expected to affect the entity’s prospects. Understanding and effectively applying materiality in this context ensures stakeholders receive relevant and reliable information, fostering transparency and accountability.