Financial Impacts of Sustainability - Connecting Businesses and Investors

Proshare

Monday, December 28, 2020 / 01.07PM / By Cfi.Co / Header Image Credit: SASB

 

 

Proshare Nigeria Pvt. Ltd.

 

Sustainability issues are global business issues. For example, data security-a social issue-is important to companies in the software industry. Water management-an environmental issue-is essential to a beverage producer. Managing conflicts of interest-a governance issue-is critical for an investment bank. Effectively managing these issues over the long-term is likely to improve companies' financial performance.

 

Because of this, investors want comparable data on how companies are managing business-critical sustainability issues. Just as financial accounting standards provide a common language for companies and investors to talk about financial performance, the markets need a common language for companies and investors to talk about sustainability performance.

 

Proshare Nigeria Pvt. Ltd.

Jeff Hales: SASB Standards Board Chair. Photo: Reese Nanavati

 

The Sustainability Accounting Standards Board (SASB) fills this need by connecting businesses and investors on the financial impacts of sustainability. SASB Standards-which are available for 77 industries-identify the subset of environmental, social, and governance issues most relevant to financial performance in each industry. Companies around the world use SASB Standards to identify, manage, and communicate financially material sustainability information to investors. SASB Standards are designed to be cost-effective for companies-on average, each standard has six disclosure topics and 13 accounting metrics.

 

The Standards help investors access sustainability data that is comparable, consistent, and reliable. SASB's rigorous and transparent standard-setting process includes evidence-based research, broad and balanced participation from companies, investors, and subject matter experts, and oversight and approval from an independent Standards Board.

 

Standards are an important tool because improved transparency leads to improved performance. When companies use SASB Standards to disclose comparable sustainability data, investors can clearly compare companies on their sustainability performance and can allocate capital to the best performers.

 

 

Proshare Nigeria Pvt. Ltd.

SDG: The Business Case  Source: Cfi.Co

 

 

Companies can benchmark their performance against peers and work to improve their sustainability performance to increase shareholder value. This creates a "race to the top" on improved environmental and social outcomes, ultimately making the capital markets a powerful lever of change for a more sustainable and just world.

 

SASB is a nonprofit organisation. The SASB Foundation Board of Directors oversees the strategy, finances, and operations of the entire organisation, and appoints the members of the SASB Standards Board.

 

The SASB Standards Board is an independent board that is accountable for the due process, outcomes, and ratification of the SASB Standards. The SASB Foundation's funding model includes three pillars of support: earned income, contributions from market participants, and philanthropy.

 

To download any of the 77 industry-specific standards, or learn more about SASB, please visit SASB.org. 

 

Proshare Nigeria Pvt. Ltd. Proshare Nigeria Pvt. Ltd.


Credits

* This article was first published on the website of cfi.co on December 22, 2020.

 

Proshare Nigeria Pvt. Ltd.


Related News - Associations & Practice

1.            2021: Nigeria Needs To Insulate Economy From External Shocks - Emefiele

2.           Society for Corporate Governance Appoints Chioma Mordi as Chief Executive

3.           CIBN, CBN Governor Advocate Leveraging Tech to Improve Administration of Justice in Nigeria

4.           CIIA to Deepen the Investment Market through Innovation and Standards - Akin' Adeniyi

5.           CIIA Unveils New Website, Registration and Membership Guidelines

6.           IOD 2020 Annual Directors Conference: Vice President Osinbajo To Grace First-Ever Virtual Event

7.           CIIA Nigeria Elects New President, Council Officers

8.           A Broker's Understanding of the CISIM Bill

9.           CIS Responds to CIIA, Clarifies Motives, Intent and Object in Proposed CISIM Bill

10.        The Imperative for Adherence to Best Practice Market Structures in Proposed CISIM Bill - CIIA

11.         Auditors Must Stop Pretending It's Not Their Job to Catch Fraud

12.        Why we are Floating a New Institute - Chartered Institute of Stockbrokers

13.        Banking and Finance Sector Have Key Roles to Play in Achieving Sustainable Development

 

Proshare Nigeria Pvt. Ltd.

 

Related News - World Bank IMF and Dev Agencies

14.        AfDB Takes Steps to Accelerate the Circular Economy in Africa

15.        African Development Bank's Board of Directors Approves the Bank's Borrowing Program for 2021

16.        Glaciers of Global Finance: The Currency Composition of Central Banks' Reserve Holdings

17.        What to do When Low-for-Long Interest Rates are Lower and for Longer

18.        World Bank Group to Boost Nigeria's Efforts to Reduce Poverty

19.        IMF Staff Completes 2020 Article IV Mission to Nigeria

20.       Open Trade and Economic Inclusion Key to Post-COVID Recovery

21.        AfDB's AgriPitch Competition Awards $120,000 in Prizes to African Youth Agripreneurs

22.       Bridging the Digital Divide to Scale Up the COVID-19 Recovery

23.       Remittance Flows to Shrink 14% by 2021 Due to COVID-19

24.       How COVID-19 Will Increase Inequality in Emerging Markets and Developing Economies

25.       SSA October 2020 Regional Economic Outlook: A Difficult Road to Recovery

 



Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP