Why Investors Use SASB Standards
Leading global investors want to evaluate how companies are managing the environmental, social, and governance (ESG) factors that also impact financial performance. However, they have historically lacked access to comparable, standardized data they need to inform their decisions.
SASB Standards, which are uniquely tailored for investors, help address this need. Because they are industry-specific, metric-driven, and focused on financial materiality, SASB Standards enable integration of ESG considerations into investment and stewardship decisions across global portfolios and asset classes. They also provide investors with comparable data that feeds the data and analytics ecosystem.
Leading international investors support SASB Standards as a fundamental way for companies to communicate financially material sustainability information to investors in an industry-specific and comparable way. These investors—across markets, asset classes, and strategies—use SASB Standards to integrate ESG and sustainability considerations into their investment decisions.
SASB Standards help investors…
- Access corporate ESG data that is comparable, consistent, and material to long-term enterprise value creation
- Identify priority issues for corporate engagement
- Improve the quality of fundamental equity and credit analysis in both public and private markets by incorporating a broader information set beyond financial statements
- Expand risk reporting to encompass sustainability risks in addition to traditional risk measures like volatility
- Develop a better understanding of sector-specific risks to inform risk allocation and risk management
- Fulfill PRI signatory commitments
Click here to learn more about how investors use SASB Standards.