SASB, TCFD & MATERIALITY ANALYSIS SUPPORT
Maximise the impact of your reporting based on theSustainability Accounting Standards Board and theTask Force on Climate-related Financial Disclosures.
Do you know how to apply and continue to improve SASB standards and TCFD disclosures to achieve maximum impact?
Do you track how your disclosure to these standards compare vs. your peers?
How robust is your materiality analysis?
Do you know how TCFD regulations will impact your business and where to get started?
BlackRock and State Street, two of the largest investors in most listed companies, sharpened in 2020 their focus on ESG, demanding companies to improve sustainability disclosures and throwing their support behind TCFD and SASB. According to our research, 37% of shares managed by institutional investors globally support SASB while all UNPRI signatories have started to disclose on TCFD from 2020 and expect companies to do so as well. Completing a materiality analysis underpins these frameworks.
From 2022, companies with subsidiaries in the UK will be required to report following TCFD guidelines for all operations in the UK.
Leaders Arena has specific expertise in evaluating the SASB and TCFD frameworks and their relevance to companies.
For us, every company has its unique sustainability story, culture and goals. Benchmarking ESG reporting vs. peers over time can provide essential self-awareness and become an effective tracking device overtime.
Leaders arena also supports clients in developing a materiality analysis. This powerful tool helps businesses and their stakeholders visualize the companies’ sustainability strategy and reporting priorities.
What is SASB?
SASB is a disclosure framework used by companies to report on ESG-related financially material factors.
Initially designed by US investors to be used by US companies, is gaining traction with investors and companies globally.
What makes SASB unique?
Industry Specific: set of sustainability accounting standards with data-points for 11 SASB-specific industries.
Financially Material: focused on factors that are the most relevant to a company’s investors.
Flexible: companies can decide which factors withing and outside of their assigned industry are the most relevant to disclose.
Concise: on average there are just 6 SASB disclosure topics to focus on per industry.
Comparable: mix of quantitative and qualitative metrics; ¾ of which are quantitative.
What is TCFD?
TCFD focuses on providing consistent and coherent guidelines for companies to report on climate change to ensure transparency for investors.
It recognizes climate change as a transitional and physical risk to companies.
What makes the TCFD recommendations unique?
Global: adoptable by all companies
Integrated: focuses on the degree to which climate change is integrated into planning and forecasting
Progressive: designed to enable well-informed decisions on prospective financial impacts
Focused: risks, opportunities and oversight related to a transition to a low-carbon economy
What is a materiality analysis?
Developing a company-wide materiality assessment supports companies by:
Providing a strong methodology foundation for the company’s sustainability strategy and its goal setting process.
Prioritising data collection and sustainability reporting.
Supporting conversations with SASB and investors in terms of the SASB reporting options that the company might take, both regarding the choice of SASB industry and within those SASB industries, the reporting metrics chosen to report on.
We don’t believe in one-size-fits-all solutions. Leaders Arena’s support is tailored to your specific needs - wherever you are in your ESG communication journey.