CSB partnered with the Sustainability Accounting Standards Board (SASB) to map the connection between good management of the material environmental, social, and governance (ESG) issues identified in the SASB Standards and the resulting measurable improvements in financial performance uncovered through the NYU Stern Center for Sustainable Business’ Return on Sustainability Investment (ROSI) framework.
The case study "The Business Case for Implementing Sustainable Practices to Drive Financial Performance within the Automotive Sector " takes a close look at SASB-defined issues including product safety, material efficiency, recycling, fuel economy, and use-phase emissions and discusses how firms in the automotive industry can effectively manage and report on SASB topics to unlock financial value.
The case study concludes that companies can communicate more concrete, decision-useful information to investors by reporting on their sustainability work through the lens of ROSI and SASB standards. By focusing on SASB-identified issues and demonstrating how performance on these issues is yielding financial results, investors gain a more complete picture of the holistic value generated through prioritizing sustainability investments.
Excerpt: "Companies must integrate effective ESG management and oversight into all levels of their company. Research on ESG credentials of corporate boards indicates that this type of skillset is often lacking, which may limit the oversight and understanding of how performance on key ESG issues can impact financial performance"
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CSB Partners with SASB to Show How Implementing Sustainable Practices Drive Financial Performance in the Automotive Sector
Wednesday, May 19, 2021