Which reporting framework is most closely aligned with SASB's focus on industry-specific financial materiality?

• A. GRI alignment only.
• B. SASB focuses on industry-specific financial materiality, whereas GRI is more comprehensive.
• C. They are identical in scope.
• D. The SASB approach itself, aligned with IFRS/GAAP where applicable; compared to GRI which is more comprehensive.

Answer: (D)

SASB centers on financial materiality that varies by industry, aiming to provide metrics investors can use to assess financial risk and opportunity. A key part of SASB’s approach is to align those sustainability metrics with existing financial reporting standards, such as IFRS or GAAP, where applicable. This makes sustainability information more comparable and integrable with traditional financial statements, which is why SASB’s method is described as aligning with IFRS/GAAP. GRI, by contrast, covers a broader set of sustainability impacts and stakeholder concerns beyond financial materiality, so its scope is more comprehensive rather than focused on financial materiality within financial reporting. The combination of industry-specific financial materiality and alignment with IFRS/GAAP is what makes the SASB approach best matched to the question.