The report shows 81 percent of all disclosures analyzed across all SASB disclosure topics indicate some level of disclosure in SEC filings, which indicates companies acknowledge these topics materially impact their business. However, more than 53 percent use boilerplate language and less than 24 percent of these disclosures contain metrics – demonstrating that many companies take a minimally compliant approach to sustainability disclosure. Companies must improve the quality of these disclosure to improve their usefulness in investment decision-making.
For the first time, SASB has also ranked the state of disclosure for all 79 SICS™ industries, because understanding which industries apply more rigor to measuring and managing their critical sustainability factors can provide important cues for investors. The top five industries, in terms of the overall effectiveness of their sustainability disclosures, are Education, Car Rental & Leasing, Cruise Lines, Gas Utilities, and Tobacco.
“This report serves as an important baseline for disclosure effectiveness, which we will use to track progress and key trends over time,” says Dr. Jean Rogers, SASB founder and CEO. “We hope this report serves as a resource as the market collectively works toward providing investors with more decision-useful information.”
To read the report, visit the SASB Library. To analyze corporate disclosure quality for 4,300+ public filings, visit the SASB Navigator.