How should a company decide whether to report a SASB metric for a non-core operation?

Prepare for the SASB Fundamentals of Sustainability Accounting Level II Test. Study with multiple choice questions, gaining hints and explanations. Enhance your sustainability reporting skills and ace your exam!

Materiality is the guiding principle: you should report a SASB metric for a non-core operation if it materially affects one or more material topics or if that operation has a material impact on enterprise value. SASB focuses on information that could influence an investor’s assessment of financial performance and value, so the scope isn’t limited to what a company considers core. If a non-core activity creates significant risks, costs, or opportunities that relate to a material topic (for example, environmental exposure, labor practices, or product safety) and could sway financial outcomes, that metric belongs in the disclosure.

For instance, a non-core manufacturing site with a high potential for environmental spills or regulatory fines could materially affect enterprise value, so reporting the relevant SASB metric would be appropriate. Conversely, simply because a topic is regulatory-approved or because an area is non-core does not determine reporting; materiality to value does. Excluding all non-core operations would miss important information investors rely on, and including metrics only because something is core would miss other financially impactful issues.