SASB Standards can provide an industry-specific set of climate-related disclosure topics and associated metrics to help a company more effectively implement TCFD disclosure. Investors have increasingly coalesced around a combination of the TCFD recommendations and SASB Standards as foundational tools to provide capital markets with effective climate- and sustainability-related financial disclosure. This pairing recognizes that such disclosure should contain both qualitative disclosures and quantitative metrics.
- Qualitative information, like that recommended by the TCFD regarding a company's approach to governance, strategy, and risk management, provides essential context to investors, helping them more fully understand the company’s current position, future prospects, and the relevant circumstances under which performance has been achieved.
- Quantitative metrics, like those included in SASB Standards, introduce essential elements of accountability and comparability to climate-related financial disclosure. They shed important light on the effectiveness of a company’s governance practices, its strategy, its approach to risk management, and its progress toward key performance targets. Quantitative metrics also facilitate comparison to peers or industry benchmarks.