April 12, 2021

Climate Risk – Technical Bulletin

Climate change is a sustainability issue that is both ubiquitous and differentiated—and thus presents unique risks and opportunities for companies and investors. The 2021 edition of this bulletin provides an overview of SASB’s approach to climate-related financial disclosure.

SASB’s Climate Risk Technical Bulletin is designed to help investors better understand, measure, and manage their exposure to climate-related risks and opportunities. The research finds that climate change is likely to materially affect nearly every industry, but manifests differently in each one. Investors can’t simply diversify away from climate risk; instead they must focus on managing it—and on encouraging portfolio companies to manage it—in all its forms. To this end, the bulletin includes an analysis of the systematic nature of climate risk, a climate-focused view of the SASB Materiality Map broken down by climate risk type (physical, transition, regulatory), a breakdown of financial impact channels by industry, an overview of current disclosure practices, and a full table of SASB’s climate-related metrics and associated risks across 77 industries.