SUSTAINABLE-INVESTING practice question 30 of 35

The Sustainability Accounting Standards Board's (SASB) Materiality Map:

Full set: 802 questions
Answer options
A: Only covers equities as an asset class.
B: Assesses portfolio-level exposure to sustainability risks.
C: Identifies material issues and weights them for individual companies. Correct answer
Correct Answer:
C. Identifies material issues and weights them for individual companies.
Explanation

The SASB Materiality Map (Option C) is designed to identify material ESG issues for specific industries and companies, helping investors: Understand which ESG issues impact financial performance. Assess and compare ESG risks across sectors.
Option A (Only covers equities) is incorrect because SASB standards apply to multiple asset classes.
Option B (Portfolio-level exposure) is more relevant to ESG rating agencies rather than SASB’s framework.
Reference: SASB Materiality Map (2022 Update) ISSB: IFRS Sustainability Disclosure Standards PRI ESG Integration in Financial Reporting

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