week 5

Question 1

what is materiality

Answer 1

relevant topics that are deemed important enough to report on them, not all material are of equal importance

Question 2

what is materiality financial reporting

Answer 2

material is considered important if leaving it out or getting it wrong could affect the decisions people make based on the financial statements

Question 3

what is materiality sustainability reporting

Answer 3

focusing on important issues that can greatly impact a company, either postively or negatively based on ESG factors

Question 4

why is materiality important

Answer 4

-guides the strategy
-ensures transparency
-goal prioritization
-sustainable and financial benefits

Question 5

wha is double materiality

Answer 5

assessed from two perspectives : financial materiality, impact materiality

Question 6

what is financial and impact materiality

Answer 6

financial: how ESG factors impact the companys financial performance, risk and opps
impact: how the companys operations/activites affect the environment, society and stakeholders

Question 7

what are challenges that come with materiality

Answer 7

1) lack of financial resources
2) lack of human resources
3) lack of organizational motivation