SASB Fundamentals of Sustainability Accounting (SA) Level II Practice Test

When a material topic lacks complete data, SASB emphasizes transparency and ongoing improvement. The recommended approach is to acknowledge the data gaps, explain the plans to remediate and improve data quality, and use proxy metrics or qualitative disclosures where appropriate. This keeps stakeholders informed about current limitations while showing a clear path toward better measurement, enhancing usefulness and comparability over time.

Proxy metrics can provide directional insight when direct data isn’t available, and qualitative disclosures add context about the actions being taken and the expected timelines, helping users assess the topic’s significance and progress. Deleting the topic, reporting only for one year without context, or treating the topic as non-material would obscure important information and mislead readers, especially when there is recognition of materiality and ongoing data improvement efforts.