Determination of Materiality Disclosure in Sustainability Reports

The concept of materiality is an important concept in accounting practice, particularly in measuring and reporting corporate sustainability performance. The concept of materiality is a tool for revealing material aspects so that sustainability reports are more relevant to stakeholders. This study aims to provide empirical evidence and analyze the influence of financial performance, company size, and industry on materiality disclosure in sustainability reports. The research population consists of companies listed on the Indonesia Stock Exchange for the period 2020-2023. The sampling method applied in this study was purposive sampling, resulting in a final sample of 32 companies. With four observation periods, the total number of observations amounted to 128. The data was processed using SmartPLS. The analysis results show that financial performance and company size do not affect materiality disclosure. The industry sector has a negative impact on materiality disclosure in sustainability reports. The implication of this study is that companies can improve their policies on the quality of materiality disclosure in sustainability reports, thereby enhancing corporate sustainability and increasing the role of the government through regulations (legislation) in optimizing the realization of sustainable development.