Material Finance Definition
Material finance, also known as financial materiality, refers to the information that could reasonably be expected to influence the investment decisions of investors. It encompasses financial and non-financial information, including environmental, social, and governance (ESG) factors, that a company should disclose because it could have a significant impact on its financial condition, operating performance, or future prospects. In essence, it focuses on what information matters most to an investor making an informed decision about allocating capital.