What is the primary role of the Sustainability Accounting Standards Board (SASB)?

The primary role of the Sustainability Accounting Standards Board (SASB) is to develop and disseminate sustainability accounting standards. SASB focuses on establishing standards that help businesses disclose material sustainability information to investors and other stakeholders in a consistent and comparable manner. This is crucial because it enables organizations to report on sustainability-related performance metrics that are relevant to their specific industries.

SASB's standards are designed to enhance the transparency of sustainability-related risks and opportunities that companies face, which in turn aids investors in making informed decisions. By setting benchmarks for reporting, SASB supports the integration of environmental, social, and governance (ESG) factors into capital allocation decisions.

The options related to creating regulations, monitoring compliance, or providing financial audits do not align with SASB's mission. While these activities are essential within sustainability governance, they fall outside the purview of SASB, which is primarily focused on standard-setting rather than enforcement or auditing.