What is an example of line-item sustainability disclosure guidance from a regulatory body?

The correct choice highlights the EU Taxonomy for Sustainable Economic Activities as an example of line-item sustainability disclosure guidance from a regulatory body. The EU Taxonomy is a classification system established by the European Union that sets out a framework for determining whether an economic activity is environmentally sustainable. It provides clear criteria and detailed line items that companies must disclose regarding their sustainability practices, enabling investors and other stakeholders to evaluate the environmental impacts of various activities.

By requiring specific disclosures, the EU Taxonomy enhances transparency and comparability of sustainability practices across different sectors. It encourages businesses to align their operations with broader sustainability goals, such as climate change mitigation and adaptation, which are critical to achieving the EU’s Green Deal and sustainability objectives.

In contrast, the other options serve different purposes. The Global Reporting Initiative (GRI) standards offer a broader framework for sustainability reporting but are not regulatory in the same way the EU Taxonomy is. The SASB Standards focus primarily on sustainability factors that are financially material to investors, tailored more for investment decision-making rather than line-item regulatory disclosure. The Integrated Reporting Framework promotes a comprehensive approach to reporting that combines financial and non-financial data but does not provide the level of detailed line-item guidance found in the EU Taxonomy.