SASB Reporting

Educating, Guiding the Corporation to Achieve Effective SASB Disclosure & Reporting

  • The G&A Institute team serves as our corporate client’s confidential guide and expert navigator to efficiently and effectively adopt SASB disclosure & reporting recommendations for their company’s industry/sector.

  • The G&A team over the past five years developed proprietary tools and comprehensive methodologies & resources to assist and support company internal teams on SASB metric and narrative disclosures.

  • Our approach helps the internal team to achieve a greater understanding of, and consideration and implementation of, the SASB disclosure recommendations.

  • G&A has a comprehensive database of SASB reports developed as a subset of our broad and deep database of corporate sustainability / ESG reporting, compiled over a decade.

  • We help to educate corporate boards and C-suite executives on the importance of SASB materiality topics by industry and sector for their company.

  • As part of the engagement, customized intelligence packets are developed to inform and educate internal Subject Matter Experts (“SMEs”) to be able to guide the development of their respective SASB-related disclosures.

  • We provide experienced Writers & Editors to assist in drafting content for SASB reporting and disclosures.

  • Our Design & Graphics Experts help clients communicate complex ESG data in a visually compelling way. 

 

About SASB:  Considering the Sustainable Accounting Standard Board’s Reporting Recommendations for Your Company

The recommendations for ESG disclosure by public companies are catching the attention of corporate boards and C-Suite – G&A Institute is ready to help your company get started with or enhancing and advancing your SASB-related disclosures.

The G&A Institute team members – experienced analysts, writers, editors, consultants – are available to assist you / your company in gaining more understanding of and responding to the SASB recommendations for enhanced disclosure related to material ESG topics and issues.

The SASB staff, working with investors, companies and other stakeholders, has over the past almost decade of work developed disclosure/reporting recommendations for public companies, focused on what investors believe to be the important metrics and narrative for disclosure by the management of publicly-traded companies. 

Asset owners and managers are now emphasizing the importance of such disclosures to corporate boards and executives.

Consider that there are now 77 industry categories (using SICS®) in 11 sectors and companies are placed in those industry categories by SASB.  These 2020 investor perspectives emphasize the importance of understanding and embracing the SASB Standards in 2020:

Larry Fink, Chair & CEO of BlackRock, the world’s largest asset manager in January 2020 letter to corporate CEOs:  “We are on the edge of a fundamental reshaping of finance. Important progress in improving disclosure has been made – many companies already do an exemplary job of integrating and reporting on sustainability but we need to achieve more widespread and standardized adoption.  While no [reporting] framework is perfect, BlackRock believes that the SASB provides a clear set of standards for reporting sustainability information across a wide range of issues, from labor practices to data privacy to business ethics.” 

In 2020, BlackRock is asking companies that the firm invests in on behalf of asset owner clients to publish a disclosure in line with the industry-specific SASB guidelines by year-end 2020 (and to disclose a similar set of data in line with the TCFD’s recommendations regarding financial disclosures related to climate change risks and opportunities). 

BlackRock will use these disclosures and its engagements with companies to ascertain whether companies are properly managing and overseeing these risks within their business and adequately planning for the future. 

See:  https://www.blackrock.com/corporate/investor-relations/larry-fink-ceo-letter

Cyrus Taraporevala, CEO of State Street Global Advisors (SSgA) in his 2020 letter to corporate board members, explained:  “We believe that addressing material ESG issues is a good business practice and essential to a company’s long-term financial performance – a matter of value, not values.”  The asset management firm (one of the world’s largest) uses its “R-Factor” (“responsibility”) to score the performance of a company’s business operations and governance as it relates to financially material and sector-specific ESG issues.

The ESG data is drawn from four leading service providers and leverages the SASB materiality framework to generate unique scores for 6,000+ companies’ performance against regional and global industry peers. “We believe that a company’s ESG score will soon effectively be as important as it credit rating,” explains the State Street CEO.

Beginning in 2020, State Street will begin to vote against board members in the S&P 500®, and other major indices / benchmarks that are laggards based on their R-Factor scores and that cannot articulate how they plan to improve their score.

See:  https://www.ssga.com/us/en/individual/etfs/insights/informing-better-decisions-with-esg

 

G&A Institute Resources & Support for Corporate Clients

The G&A team over the past five years has developed proprietary tools and methodologies to assist and support company teams in understanding, considering and implementing the SASB disclosure recommendations in their disclosure and reporting activities.

One of the typical approaches of companies in beginning to utilize the SASB recommendations is to incorporate the references to specific disclosures in their GRI report format (in the Content Index that should accompany the report); in Proxy Statement references and explanations; in the 10-k; in investor presentations; in responding to third party ESG ratings agencies’ surveys; in the S&P Global Ratings “Corporate Sustainability Assessment” (the CSA); and in engaging with ESG third-party ratings agencies to improve their ESG profiles.

The G&A Institute “Strategic ESG Data Review” exercise and the tried and true five-step process for producing the corporate sustainability / responsibility / citizenship / ESG report includes positive positioning recommendations in the blueprint provided to the client for addressing the SASB recommendations.

Why this is important in 2020:  boards of directors and C-suite will be focusing on the SASB disclosure / reporting recommendations for their company.  The approach should be part of an overall, comprehensive, sharply-focused exercise (the materiality of disclosure is key!) that results in an industry-leading report.

Contact the G&A team through the form above to learn more about this important exercise for your company.