lthough different definitions for materiality apply, the consensus among investors is that a material ESG issue is a fundamental value driver of a company or security that affects the income statement, balance sheet, and cash-flow statement positively or negatively.
According to the October 2019 report Climate-Related Corporate Reporting from the UK Financial Reporting Council’s (FRC) Financial Reporting Lab,
Creditor factoring generally delays payments to creditors to fund a company’s operations. While such arrangements may help companies in smoothing operating cashflow volatility, often it is used as a last resort to manage liquidity problems. Investors find out about this practice only when “other items” in current liabilities become too big to miss when it may be too late to take action.