Waiting for materiality in the context of Integrated Reporting: theoretical challenges and preliminary empirical findings.

The concept of materiality for non-financial information, with specific reference to Integrated Reporting, may be conveniently rooted in the broad theoretical frameworks generally used for addressing sustainability issues (stakeholder theory, legitimacy theory, institutional theory). However, the process of determining materiality and material issues is manifold, both in itself and for the different perspectives it should be viewed from. Some of the most relevant aspects may be namely: stakeholder engagement and the relationship between materiality and other principles, such as consistency, comparability, and conciseness. In this context, the preliminary and descriptive findings of this study, performed through detailed visual inspection and analysis of 19 reports, highlight that the process of determining materiality - and the disclosure about that process - as they are presented in the Integrated Reports of 2014, are still far to be satisfactory for the readers, since important issues and information are missing or not disclosed in a clear and comparable manner. At the same time, the very future of materiality for non-financial information - which focuses on scope (the range of information covered), stakeholder groups (those whose perceived effects are likely to be affected) and time frame (the time period needed) - is closely related to the future (and the success) of IR itself and to its attempts to institutionalize a New Reporting Framework.