How should SASB metrics be presented relative to financial statements?

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The key idea is that SASB metrics should be shown with a clear link to financial performance, illustrating how trends in nonfinancial metrics relate to revenue, costs, risk, and returns. This makes sustainability data decision-useful for investors by showing financial materiality rather than just numbers.

Think about how a metric on energy use or emissions might affect costs or margins. If energy intensity is trending down, it can translate into lower operating costs and more stable earnings in the face of energy price volatility. Likewise, metrics on workforce safety or supply chain disruption connect to productivity, insurance and liability costs, and potential revenue risk if operations are interrupted. By presenting these metrics alongside or in the context of the financial statements, the company helps readers see how sustainability performance can influence financial results and risk.

In contrast, presenting metrics as isolated numbers without any connection to financial performance leaves a gap for readers trying to assess value. Focusing only on historical counts of activities without tying them to outcomes ignores whether those activities affect costs, revenue, risk, or returns. And aligning metrics only with governance disclosures while ignoring risk or returns misses the broader purpose of integrating sustainability with financial materiality for investors and lenders.