A Preliminary Analysis of SASB Reporting: Disclosure Topics, Financial Relevance, and the Financial Intensity of ESG Materiality

Journal of Applied Corporate Finance, Vol. 32, Issue 2, 2020

16 Pages Posted: 31 Mar 2020 Last revised: 15 Jun 2020

See all articles by Cristiano Busco

Cristiano Busco

Luiss Guido Carli University

Costanza Consolandi

University of Siena

Robert G. Eccles

University of Oxford - Said Business School

Elena Sofra

Luiss Guido Carli University

Date Written: March 4, 2020

Abstract

At the end of 2018, the Sustainability Accounting Standards Board (SASB) released the codified version of its standard that established measurement and reporting criteria for companies’ material environment, social, and governance (ESG) issues. By introducing the concept of financial relevance of materiality, we present an analysis of the quality of reporting of the companies that adopted SASB’s framework in their 2019 non-financial reports. While the number of companies reporting according to SASB’s standards is still small, our results are encouraging, showing, on average, good to very good quality of reporting.

Keywords: ESG materiality, Sustainability Accounting Standards Board, SASB, financial relevance of ESG materiality, financial intensity of ESG materiality, compliance, disclosure, corporate reporting

JEL Classification: M14,

Suggested Citation

Busco, Cristiano and Consolandi, Costanza and Eccles, Robert G. and Sofra, Elena, A Preliminary Analysis of SASB Reporting: Disclosure Topics, Financial Relevance, and the Financial Intensity of ESG Materiality (March 4, 2020). Journal of Applied Corporate Finance, Vol. 32, Issue 2, 2020, Available at SSRN: https://ssrn.com/abstract=3548849 or http://dx.doi.org/10.2139/ssrn.3548849

Cristiano Busco

Luiss Guido Carli University ( email )

Via O. Tommasini 1
Rome, Roma 00100
Italy

Costanza Consolandi (Contact Author)

University of Siena ( email )

Via Banchi di Sotto, 55
Siena, 53100
Italy

Robert G. Eccles

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

Elena Sofra

Luiss Guido Carli University ( email )

Via O. Tommasini 1
Rome, Roma 00100
Italy

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