A conversation on materiality
By Jay Lipman and Melissa Mittelman
June 11, 2019
The ability to prioritize information has always been an essential skill for investors. But today, with the growth of data on companies’ environmental, social, and governance practices, investors now must weigh information that was historically considered non-financial, such as environmental impact or gender diversity. Understanding how much those factors matter is difficult, to say the least. A discussion of materiality is therefore an important consideration for every market participant.