How do disclosures based on SASB Standards meet investor needs?

Disclosures based on SASB Standards are designed to enhance both pre-investment and post-investment decision-making for investors. This is primarily achieved through the provision of standardized, industry-specific sustainability metrics that are relevant to financial performance. By systematically identifying and reporting on sustainability factors that could impact business value, SASB disclosures help investors to assess risk, understand opportunities, and make more informed investment choices.

These disclosures facilitate better comparisons between companies within the same industry, allowing investors to evaluate how well companies are managing sustainability issues that may affect their financial health. Enhancing decision-making in this way empowers investors to align their portfolios with their values and to seek out firms that are better positioned for sustainable growth.

In contrast, irrelevant data would not serve the purpose of aiding decision-making, limiting the types of investments may restrict opportunities, and a focus solely on long-term trends may overlook important immediate factors affecting investment choices. Therefore, the option outlining the enhancement of decision-making aligns closely with the fundamental objectives of SASB Standards in the context of sustainability accounting.