Materiality and stakeholders

Ram Subramanian FCPA 
Financial Reporting Lead, CPA Australia

Our definition of material issues includes those issues which have the most impact on our ability to create value for our members, the organisation and the broader community, as our key stakeholder groups. There are some trade-offs between material issues, as an example a material issue may negatively impact value creation for one capital, but create value in another capital. In 2025, financial capital (year-on-year) in terms of capital reserves has been depleted slightly due to the investment in strategic initiatives that have increased intellectual, social and relationship and manufactured capital.

To inform this report and our operations we gather a wide range of input across our day-to-day activities. Report feedback is undertaken annually and focuses on identifying the topics of most importance to value creation and where improvements can be made from previous years. Stakeholders interviewed include Board members, a selection of Divisional Councillors, our CEO and ELT and other employees. Prior to these interviews we conducted an online survey (n=92) to inform the structure of the interviews.

We continue to review these issues each year to ensure they reflect our value creation story and strategy. In 2025, this included consideration of new issues based on changes in the external environment, the focus of our investment of funds to benefit members and matters raised in the media and other sources throughout the year.

Items with lower materiality are not included in the report as separate issues, however, this does not mean they have little or no importance. Coverage of these issues is still included as part of requirements under the Integrated Reporting Framework or as a part of other material issues.

One combined issue from two 2024 issues is included in the 2025 report, the issues of ESG reporting and climate-risk and corporate governance have been combined into a single issue of ESG.

This better matches the risks and opportunities in our enterprise risk profile.