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Doug Park

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3 Myths About SASB and Materiality
3 Myths About SASB and Materiality

New Metrics / Here at SASB, we’ve noticed some confusion about the term "materiality." Such confusion is understandable. “Materiality” has different meanings when used colloquially and when used legally. Within the law, materiality has different meanings within securities law, contract law and the law of evidence. Due to this range of possible definitions, “materiality” has come to resemble “sustainability” as a word that can mean everything at once and thus nothing at all. To address potential confusion, SASB abides by the U.S. securities law definition of the materiality. Our use of the term is therefore legally sound. Read on for an explanation of the most common misperceptions about SASB and materiality. - 7 years ago

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