Which of the following is NOT a common source of evidence used in SASB disclosures?

Which of the following is NOT a common source of evidence used in SASB disclosures?

• A. Company Source Material
• B. Third-Party Research
• C. Investor Insights
• D. Financial Statements

Answer: (D)

The key idea is understanding where SASB disclosures typically draw their evidence from. SASB guidance relies on a mix of internal company materials (data, policies, governance structures, and sustainability metrics sourced from the company’s own systems), third-party research (external studies, audits, benchmarks, and independent data providers), and investor insights (dialogue and feedback from investors about material topics). These sources provide non-financial, ESG-focused information that SASB metrics require. Financial statements, on the other hand, are the realm of financial accounting and reporting (GAAP/IFRS) and focus on financial performance, assets, liabilities, and equity. They use different data collection, definitions, and assurance processes and don’t typically capture the granular non-financial metrics that SASB disclosures demand. Because of that mismatch in scope and purpose, financial statements are not a common source of evidence used in SASB disclosures.

The key idea is understanding where SASB disclosures typically draw their evidence from. SASB guidance relies on a mix of internal company materials (data, policies, governance structures, and sustainability metrics sourced from the company’s own systems), third-party research (external studies, audits, benchmarks, and independent data providers), and investor insights (dialogue and feedback from investors about material topics). These sources provide non-financial, ESG-focused information that SASB metrics require.

Financial statements, on the other hand, are the realm of financial accounting and reporting (GAAP/IFRS) and focus on financial performance, assets, liabilities, and equity. They use different data collection, definitions, and assurance processes and don’t typically capture the granular non-financial metrics that SASB disclosures demand. Because of that mismatch in scope and purpose, financial statements are not a common source of evidence used in SASB disclosures.