Exploring the Matters by ESG Dimensions Disclosed Within the European Entities' Materiality Matrices: Are There Differences Explained by the Entities' Specific Characteristics?

Abstract

The concept of materiality is essential in the fields of accounting and auditing, enabling the identification of important issues from the entities' perspectives and those affected by it. This research focuses on the disclosure of materiality in non-financial information (NFI) reporting, assessing the topics disclosed within the entities' materiality matrix by ESG dimensions and considering their characteristics, such as size, profitability, debt, and gender diversity on the board of directors. The research uses archival research as a methodology and content analysis as an investigative technique, examining NFI reports for the year 2021 from companies listed on Euronext's main indices. The findings from the 69 NFI reports show the matters on the social aspect as the most disclosed, which is also the ESG dimension where those characteristics do not appear to be relevant when it comes to their disclosure levels. This study provides value to literature and practice by offering insights to standard-setter bodies, regulators, auditors, and various stakeholders involved in NFI reporting.