Ellis: What is the best way for advisors to use the resources that SASB has developed to date, as well as the standards that will be codified?
Rogers: Advisors can begin with the SASB Materiality Map to avoid or diversify away from certain types of risk, as well to choose best-in-class companies. They can use the SASB Navigator to access company specific 10-K filings by entering a ticker symbol. They can compare one company to another using this tool, as well as compare a company’s SEC disclosures to their CSR and sustainability reports. The best companies are already improving their 10-K filings to reflect the level of disclosure being used in their sustainability reports. Once we have more company performance data, SASB can be more specific about shaping exposure to risk.
These tools give advisors a better way to focus a discerning eye on company disclosures today and make an assessment of the company’s ESG risks or request additional information.
Right now, we are encouraging advisors and investors to engage with companies. Let them know where additional data or improved performance is needed on ESG issues. Active investors should remember they have a right to material information.
Paul Ellis founded Paul Ellis Consulting to work with financial advisors who want to integrate sustainable and impact investment strategies for their clients.