The concept of materiality in sustainability reporting: from essential contestation to research opportunities

Abstract

Purpose The purpose of this study is to investigate whether a unified understanding of materiality is possible, given that conceptual pluralism represents a key characteristic of materiality approaches in sustainability reporting. Design/methodology/approach This paper systematically reviews and examines materiality conceptualizations in sustainability disclosure research and practice, utilizing Gallie’s (1956) analytical framework of essentially contested concepts. The framework enables the separation of conceptual confusion from essential contestation. Whereas reaching conceptual consensus is possible in the former, the hurdles to conceptual agreement are insurmountable in the latter. Findings This paper reveals that the prevailing lack of consensus surrounding materiality is grounded in its essential contestation, not in conceptual confusion. This robustly supports the projection of conceptual plurality as materiality’s most probable future. Research limitations/implications Building on the materiality concept’s essentially contested nature, this paper calls for future research that explicitly embraces the concept’s plural character and more interdisciplinary research. Practical implications As a unified understanding of materiality is unlikely to evolve, standard-setters should provide a clear definition of the underlying materiality concept, offer specific guidance on materiality assessment and issue joint documents that detail the similarities, differences and interconnections between their respective materiality frameworks. Social implications Projecting plurality as materiality’s most probable future underscores the importance of users of sustainability reports understanding the materiality concept applied by the reporting entity and the respective consequences for identifying material sustainability issues. Originality/value From this paper’s novel insight that materiality is an essentially contested concept, this paper derives two overarching future research directions and offers a broad set of exemplary research questions.