The non-financial statement is expected to reflect a company’s fair view of the information needed by relevant stakeholders. Material information must be assessed in a context. Information that may be material in one context may not be in another.

Issues to be considered for inclusion in the non-financial statement are specific to the company’s circumstances, taking into account concrete situations and sectoral considerations.

Companies within an industry are likely to share similar environmental, social and governance challenges, for instance because of the resources they may rely upon to produce goods and services, or the effects they may have on people, society and the environment. It may therefore be appropriate to directly compare relevant non-financial disclosures among companies in the same sector.

Companies may report on a wide range of potential issues. A company assesses which information is material based on its analysis of how important that information is in understanding its development, performance, position and impact. This materiality assessment should take into account internal and external factors.