The concept of materiality in sustainability reporting: from essential contestation to research opportunities
Sustainability Accounting, Management and Policy Journal
ISSN: 2040-8021
Article publication date: 17 December 2024
Issue publication date: 6 January 2025
Abstract
Purpose
The purpose of this study is to investigate whether a unified understanding of materiality is possible, given that conceptual pluralism represents a key characteristic of materiality approaches in sustainability reporting.
Design/methodology/approach
This paper systematically reviews and examines materiality conceptualizations in sustainability disclosure research and practice, utilizing Gallie’s (1956) analytical framework of essentially contested concepts. The framework enables the separation of conceptual confusion from essential contestation. Whereas reaching conceptual consensus is possible in the former, the hurdles to conceptual agreement are insurmountable in the latter.
Findings
This paper reveals that the prevailing lack of consensus surrounding materiality is grounded in its essential contestation, not in conceptual confusion. This robustly supports the projection of conceptual plurality as materiality’s most probable future.
Research limitations/implications
Building on the materiality concept’s essentially contested nature, this paper calls for future research that explicitly embraces the concept’s plural character and more interdisciplinary research.
Practical implications
As a unified understanding of materiality is unlikely to evolve, standard-setters should provide a clear definition of the underlying materiality concept, offer specific guidance on materiality assessment and issue joint documents that detail the similarities, differences and interconnections between their respective materiality frameworks.
Social implications
Projecting plurality as materiality’s most probable future underscores the importance of users of sustainability reports understanding the materiality concept applied by the reporting entity and the respective consequences for identifying material sustainability issues.
Originality/value
From this paper’s novel insight that materiality is an essentially contested concept, this paper derives two overarching future research directions and offers a broad set of exemplary research questions.
Keywords
Acknowledgements
The authors thank participants of the 45th Annual Congress of the European Accounting Association and our discussant, Enrique Mesa-Pérez, for their insightful comments, Lukas Löhlein and Madlen Sobkowiak for their valuable remarks on earlier versions of the paper and Sun Hwang for excellent research assistance. We also thank the journal editor and three anonymous reviewers.
Funding: This research did not receive any specific grant from funding agencies in the public, commercial or not-for-profit sectors.
Declarations of interest: The authors declare that they have no conflict of interest.
Citation
Oll, J., Spandel, T., Schiemann, F. and Akkermann, J. (2025), "The concept of materiality in sustainability reporting: from essential contestation to research opportunities", Sustainability Accounting, Management and Policy Journal, Vol. 16 No. 2, pp. 321-350. https://doi.org/10.1108/SAMPJ-03-2024-0296
Publisher
:Emerald Publishing Limited
Copyright © 2024, Emerald Publishing Limited