Which of the following is NOT among the five factors used to determine evidence of stakeholder interest for SASB standards?

Which of the following is NOT among the five factors used to determine evidence of stakeholder interest for SASB standards?

• A. Financial impacts and risk
• B. Legal, regulatory, and policy drivers
• C. Industry norms and competitive drivers
• D. Customer satisfaction

Answer: (D)

The idea being tested is how SASB identifies evidence that stakeholders care about a topic. SASB looks at external forces that can affect a company’s value, such as how issues can create financial impacts or risk, what laws or policies pressure a company to act, and what norms or expectations exist within the industry and among competing firms. These factors help determine which sustainability topics are material to investors and other stakeholders. Customer satisfaction, while important for business performance and brand health, is not one of the broad external drivers SASB uses to gauge stakeholder interest across topics. It’s more of an internal performance metric focused on the customer experience rather than a factor used to establish evidence of stakeholder interest in SASB’s framework. The other factors—financial impacts and risk, legal/regulatory/policy drivers, and industry norms and competitive drivers—are the kinds of external pressures SASB explicitly considers when deciding which topics are material.

The idea being tested is how SASB identifies evidence that stakeholders care about a topic. SASB looks at external forces that can affect a company’s value, such as how issues can create financial impacts or risk, what laws or policies pressure a company to act, and what norms or expectations exist within the industry and among competing firms. These factors help determine which sustainability topics are material to investors and other stakeholders.

Customer satisfaction, while important for business performance and brand health, is not one of the broad external drivers SASB uses to gauge stakeholder interest across topics. It’s more of an internal performance metric focused on the customer experience rather than a factor used to establish evidence of stakeholder interest in SASB’s framework. The other factors—financial impacts and risk, legal/regulatory/policy drivers, and industry norms and competitive drivers—are the kinds of external pressures SASB explicitly considers when deciding which topics are material.