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Provide an essay about over the past years, investing as a complex accounting means has gone beyond material investments
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##Executive Summary
Over the past years, investing as a complex accounting means has gone beyond material investments. Although they still constitute the major part of investing operations, nowadays, they are also about immaterial aspects. Investing as a complex accounting means has gone beyond material investments. Although they still constitute the major part of investing operations, nowadays, they are also about immaterial aspects.
#Sustainability Accounting Standards Board’s Guides Essay
Over the past years, investing as a complex accounting means has gone beyond material investments. Although they still constitute the major part of investing operations, nowadays, they are also about immaterial aspects. Immaterial sustainable investments deal with ecological, social, or political financing without a specific material outcome. The readings assigned for the topic aim at explaining how companies should manage ecological, social, and governance (ESG) factors in terms of their engagement and implementation.
The first assigned reading is an article written by Mozaffar Khan, George Serafeim, and Aaron Yoon, which develops the idea of differentiation between material and immaterial sustainable investments. Such a division helps examine the real financial outcomes, as material investing is generally believed to be more crucial for finances, while immaterial investments usually affect value implications.
The future of this study lies in the examination of companies that develop aspects of both material and immaterial sustainable investment. In my opinion, the study is beneficial in terms of efficiency but needs more clarity for the recipients related to the topic without proficient knowledge in investing.
Another work is created by the Sustainability Accounting Standards Board (SASB) in order to focus on the topic of companies’ engagement in the context of ESG factors. The guide is focused primarily on various means of communication within the company and their impact on the companies’ disclosure. For this purpose, the book deals with facets investors are interested in depending on the company and the goods it produces.
The third assigned work, also developed by SASB, is a practical guide designed for the companies willing to integrate the Board’s standards. Throughout the guide, companies can find how they should implement them considering various sustainability indicators, which vary from one company to another. Hence, once companies properly evaluate these considerations and apply disclosure analysis created by SASB, they will be ready to implement the organization’s standards and cooperate with investors effectively. Speaking of both guides, one may notice how structured and easy to perceive they are for the companies who only start their way towards efficient communication with investors.