Which practice aligns SASB with climate-related reporting to provide risk information?

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Multiple Choice

Which practice aligns SASB with climate-related reporting to provide risk information?

The practice being tested is combining SASB’s climate-related, sector-specific metrics with the TCFD’s climate risk disclosures to give a fuller picture of risk. SASB focuses on financially material metrics that are relevant to a specific industry, providing quantitative data that investors can compare across companies. TCFD offers a framework for describing governance, strategy, risk management, and the metrics and targets around climate risk, including scenario planning. When you include SASB climate metrics alongside TCFD climate risk disclosures, you deliver both the hard, decision-useful data and the narrative context necessary to understand how climate risks could affect financial performance. This integrated approach is more informative than using either framework alone. Excluding TCFD means losing the structured risk-disclosure framework that communicates how climate issues impact the business. Relying solely on SASB metrics misses the broader risk discussion and how those metrics tie to governance and strategy. Relying only on TCFD and ignoring SASB forgoes sector-specific, financially material data that makes cross-industry comparisons more meaningful.

The practice being tested is combining SASB’s climate-related, sector-specific metrics with the TCFD’s climate risk disclosures to give a fuller picture of risk. SASB focuses on financially material metrics that are relevant to a specific industry, providing quantitative data that investors can compare across companies. TCFD offers a framework for describing governance, strategy, risk management, and the metrics and targets around climate risk, including scenario planning. When you include SASB climate metrics alongside TCFD climate risk disclosures, you deliver both the hard, decision-useful data and the narrative context necessary to understand how climate risks could affect financial performance. This integrated approach is more informative than using either framework alone.

Excluding TCFD means losing the structured risk-disclosure framework that communicates how climate issues impact the business. Relying solely on SASB metrics misses the broader risk discussion and how those metrics tie to governance and strategy. Relying only on TCFD and ignoring SASB forgoes sector-specific, financially material data that makes cross-industry comparisons more meaningful.

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