“Tomorrow’s Value asks the question: How far has the value lightbulb switched on in corporate brains and boardrooms? On current evidence, the answer is that the links between the evolving sustainability agenda and wider market opportunities are now better understood — with a small number of companies reporting the relationship with value in increasingly interesting ways. Partly as a result, some parts of the financial community are gearing up their use of non-financial, extra-financial and/or sustainability disclosures to better understand emerging environmental, social and governance risks. Nonetheless, our expert panel concluded that most companies are still missing an important opportunity to communicate with financial analysts and institutions.”
Via PSD Blog - Less is more Madonna?
“The concept of materiality has long been part of the legal and financial worlds, yet it is now featuring much more prominently in the ESG (environmental, social, governance) arena.”
Related Concept;
The concept of materiality is derived from the field of financial auditing, where it is defined as, ‘the magnitude of an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement’. Statement of Financial Accounting Concepts No. 2, Qualitative Characteristics of Accounting Information, Financial Accounting Standards Board (FASB).
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