EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MARCH 2014 EDITION.
The reasonable investor of 2014 is not the same as the reasonable investor of 1973. However, investors don’t have information to determine how companies are adapting to this new reality. In this situation, investors need comparable environmental, social, and governance (ESG) data in an accessible format. SASB standards—designed for the disclosure of material ESG issues in mandatory SEC filings such as the Form 10-K—cater to this need. The things that matter to investors are changing. Through design, we can help the capital markets evolve to serve these needs. Both SASB and the SEC are designing solutions to improve the quality and usefulness of disclosure.