How does SASB complement TCFD climate disclosures?

• A. SASB replaces TCFD
• B. They are incompatible
• C. TCFD provides metrics only
• D. SASB provides industry-specific metrics for financially material climate-related issues, while TCFD focuses on scenario analysis and governance; both can be used together

Answer: (D)

Both frameworks address climate disclosures but from different angles, and they complement each other. SASB provides industry-specific metrics that reflect financially material climate-related issues for a given sector, helping investors compare performance across companies. TCFD offers a broad framework for governance, strategy, risk management, and scenario analysis to assess resilience to climate risks and how those risks are managed. Because these aims are complementary, they can be used together: report TCFD’s governance and scenario analysis alongside SASB’s sector-focused metrics to deliver a complete, material view for investors. The other options aren’t accurate because SASB doesn’t replace TCFD, the two aren’t incompatible, and TCFD includes more than just metrics.