Principle 4: Only include what is material
Standard on applying Principle 4
Establish the boundaries of what information and evidence must be included in an account of value to give a true and fair picture, and one that is based on the evidence from stakeholders, so decisions taken focus on the changes that matter.
One of the most important decisions to make is which outcomes to include and exclude from an account of social value. This decision should recognise that there will be many outcomes, and an organisation cannot manage and account for all of them. The basic judgement to make is whether a stakeholder would make a different decision about the activity if a particular piece of information were excluded.
This document is SVI’s Standard for the application of Principle 4: Only include what is material.
Useful guidance:
AA1000 AccountAbility Principles
The AA1000AP (2018) is an internationally accepted, principles-based framework that guides organizations through the process of identifying, prioritizing, and responding to sustainability challenges, with the goal of improving long-term performance.
Materiality Background Paper for <IR>
Materiality is a matter that has been debated extensively in the context of many forms of reporting. This Background Paper, explores the concepts of materiality for purposes of developing an International Integrated Reporting <IR> Framework.