PurposeThis paper outlines the development of the principle of materiality in the European accounting framework, from the Modernization Directive (2003/51/EC) to the NFI Directive (2014/95/EU) and on to the proposals for a Corporate Sustainability Reporting (CSR) Directive (2021/0104 (COD)). The authors highlight how the requirements for corporate reporting in terms of sustainability matters have changed, underlining the main issues that require further attention by practitioners, researchers and legislators.Design/methodology/approachThis paper is based upon a historic analysis of European Union (EU) regulations in the field of non-financial and sustainability reporting and how these have changed over time. A conceptual comparison of different reporting concepts is presented, and changes in their relevance to the EU accounting framework are discussed as part of the historic analysis. Implications from corporate practice are derived from previous empirical findings from the EU Commission's consultations.FindingsThe proposed change from non-financial to sustainability reporting within the EU affects more than simply the terminology used. It implies that a different understanding is needed of both the purposes of company reporting on sustainability matters and the aims of carrying out such reporting. This change was driven by the need and desire to appropriately interpret the principle of materiality set forth in the NFI Directive. However, the recent redefinition in the shift within the EU Commission's proposals presents considerable challenges–and costs–in practice.Research limitations/implicationsFuture research on the conceptualization and operationalization of ecological and social materiality, as well as on the use of this information by different stakeholder groups, is necessary in order to (a) help companies that are applying the reporting requirements in practice, (b) support the increased harmonization of the reports published by these companies and (c) fully assess the costs and benefits associated with the increase in reporting requirements for these companies.Practical implicationsCompanies have to establish relevant reporting processes, systems and formats to fulfil the increasing number of reporting requirements.Originality/valueThis paper outlines the historic development of the principle of materiality regarding mandatory non-financial or sustainability reporting within the EU. It outlines a shift in rationales and political priorities as well as in implications for European companies that need to fulfil the reporting requirements. In consequence, it describes appropriate interpretations of this principle of materiality under current and upcoming legislation, enabling users to apply this principle more effectively.

Materiality of disclosures is one of the fundamental principles of the nonfinancial reporting regime introduced by the Directive 2014/95/EU ("NFI Directive"). However, despite its close link to the principle of materiality for financial reporting, specific issues arise in the context of these new reporting requirements-leading to a conception that is different also from existing definitions in the field of similar reporting practices. Furthermore, there are different types of "materialities" to be found within the Directive itself. So far, this topic has not been addressed systematically in literature, leaving many questions open and causing confusion by both preparers and readers on nonfinancial reports. Consequently, this paper identifies and links the various types of materiality by analysing, contextualizing and interpreting the relevant sections of the Directive 2014/95/EU and other reporting frameworks. It is shown that despite the expectations of many, with regards to materiality, the reporting requirements of the Directive 2014/95/EU are closer to integrated reporting than it is to sustainability reporting.Wesentlichkeit(en) in der nichtfinanziellen Berichterstattung -Eine Analyse der Berichtspflichten gemäß Richtlinie 2014/95/EU Zusammenfassung Der Wesentlichkeitsgrundsatz stellt innerhalb der durch die Richtlinie 2014/95/EU ("NFI-Richtlinie") eingeführten Berichtspflichten einen zentralen Grundsatz dar. Obschon er in diesem Kontext eine enge Verknüpfung zum Verständnis von Wesentlichkeit im Rahmen der Finanzberichterstattung aufweist, stellen sich doch auch spezifische Herausforderungen des neuen Kontextes -was zu einem erforderlichen Begriffsverständnis führt, das sich von den bisher vorzufindenden vertretenen Auslegungen von Wesentlichkeit unterscheidet. Darüber hinaus zeigt sich Wesentlichkeit sogar innerhalb der neu eingeführten Berichtspflichten in mitunter unterschiedlichen Ausprägungen. Die Vielzahl an damit verbundenen (Auslegungs-)Fragen wurde jedoch von der Literatur noch nicht aufgegriffen, wodurch offene Fragen und v.a. Verunsicherung aufseiten der Berichtersteller und -adressaten verbleiben. Folglich zielt dieser Aufsatz darauf, die verschiedenen Ausprägungen von Wesentlichkeit im Kontext der Richtlinie 2014/95/EU wie auch in Abgrenzung zu anderen Berichtsvorgaben zu identifizieren und zu verbinden. Das Ergebnis zeigt zur Überraschung vieler, dass die Vorgaben dieser Richtlinie von einer stärkeren Anlehnung an das Konzept des Integrated Reporting denn an eine traditionell verstandene Nachhaltigkeitsberichterstattung geprägt sind.

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Bestimmte große Unternehmen waren für das Geschäftsjahr 2017 erstmalig verpflichtet, über ihre Nachhaltigkeitsleistung in Form einer nichtfinanziellen Berichterstattung Rechnung zu legen. Dadurch erfolgte eine Erweiterung des bisherigen Verständnisses der Unternehmensberichterstattung. Dem Nutzen einer vollständigen Abbildung des Unternehmenserfolges und seiner Auswirkungen stehen praktisch große Herausforderungen in der Umsetzung gegenüber.