Why is it important to discuss upstream and downstream impacts in SASB reporting?

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Discussing upstream and downstream impacts shows how a material sustainability topic affects the broader value chain, from suppliers (upstream) to customers and product use or end-of-life (downstream). In SASB reporting, this broader view provides a more complete picture of the topic’s implications, helping investors assess risks and opportunities that may affect costs, revenue, regulatory exposure, and long-term resilience. For example, dependencies on a scarce input upstream can drive price volatility or supply risk, while downstream issues like product safety or end-of-life recycling can influence demand and liability. Because this information helps investors make better capital-allocation and risk-management decisions, it’s considered important and decision-useful. It’s not optional, it doesn’t apply only to suppliers, and it remains relevant regardless of whether a company is viewed as an industry leader.