Which of the following statements about SASB disclosure topics is correct?

The correct statement regarding SASB (Sustainability Accounting Standards Board) disclosure topics is that they may not be relevant if a company outsources significant portions of its work. This recognizes that SASB disclosure topics are developed with industry-specific considerations in mind, meaning that the relevancy of certain topics can vary depending on a company's unique operations and practices. For instance, if a company relies heavily on outsourcing, some of the standard disclosure topics might not adequately capture the pertinent sustainability issues that arise from that arrangement, as the primary operations are being conducted by third parties rather than directly by the company itself.

Understanding the essence of SASB disclosure topics involves acknowledging that they are designed to provide relevant sustainability information tailored to specific industries. Thus, a company's operational structure—such as outsourcing—can influence which disclosure topics are material and relevant to stakeholders, including investors.