Starting right: Identifying material sustainability impacts for public sector organizations

Some local governments are voluntarily engaging in sustainability reporting to demonstrate their commitment to sustainable development. However, challenges like inconsistent interpretations of sustainability, organizational and power dynamics, resource limitations, and the lack of standardized frameworks hinder progress. This article highlights the importance of developing the materiality process in sustainability reporting, integrating organizational practices and accounting research. Materiality serves as both a strategic and organizational tool, influenced by institutional dynamics. Institutional logics, which guide and legitimize organizational practices, play a crucial role in shaping accountability and reporting processes, including the way materiality is defined and applied. The article seeks to contribute to the standardization of the definition of materiality in the public sector, particularly within local governments, aligning it with stakeholder needs to strengthen accountability and sustainability outcomes.