What approach does SASB take to standard-setting?

The approach that SASB (Sustainability Accounting Standards Board) takes to standard-setting is characterized by being evidence-based, market-informed, industry-specific, and transparent.

To elaborate, an evidence-based approach means that SASB relies on quantitative and qualitative data to identify what sustainability topics are most relevant for different industries, ensuring that the standards are grounded in empirical evidence. This helps companies provide disclosures that are meaningful and useful for investors and stakeholders.

Being market-informed indicates that SASB considers the perspectives and needs of market participants, including investors, companies, and other stakeholders, to ensure that the standards meet their informational requirements for effective decision-making.

The focus on being industry-specific allows SASB to create tailored standards that address the unique sustainability challenges and opportunities faced by different sectors. This is crucial since the impact of environmental, social, and governance (ESG) factors can vary significantly between industries.

Lastly, transparency is a vital component of SASB's approach. By being open about their standard-setting process, the rationale behind the standards, and how stakeholders can engage with the process, SASB fosters trust and credibility in their work.

In contrast, other approaches such as being generalized or non-specific would fail to account for the nuances of different industries and would not provide