True or False: If a company’s revenue from a stream only accounts for 1% of its total revenue, it is considered immaterial for SASB reporting.

In the context of SASB (Sustainability Accounting Standards Board) reporting, the determination of materiality is not solely based on the percentage of revenue from a particular stream relative to total revenue. While it may seem intuitive that a stream contributing only 1% of total revenue is immaterial, materiality also takes into account other qualitative and quantitative factors, such as the potential impact on stakeholders, regulatory requirements, and the company's business strategy.

Certain revenue streams, regardless of their size, can have significant implications for sustainability performance or risk. For instance, if that 1% comes from a highly risky or environmentally sensitive operation, it could be material due to its potential for legal liabilities, reputational risk, or alignment with sustainability goals.

Therefore, the correct stance is that just because a revenue stream is small in percentage terms does not automatically make it immaterial for SASB reporting. Materiality must be evaluated through a broader lens, taking into consideration various factors that influence a company's overall sustainability profile.