Financial materiality
The perspective under which a sustainability matter is material if it triggers, or could reasonably be expected to trigger, significant financial effects on the company: financial position, performance, cash flows, access to finance or cost of capital, over the short, medium or long term. Together with impact materiality, it forms ESRS double materiality; the ISSB uses this perspective alone.
See also: Double materiality
Reference source: eur-lex.europa.eu
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