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    Jetblue: Relevant Sustainability Leadership (A) : Situational Analysis

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    Shivani Karkera
    JetBlue was considering adopting the Sustainability Accounting Standards Board (SASB) framework for its sustainability reporting. SASB focuses on industry-specific metrics for environmental issues, as opposed to the broader Global Reporting Initiative (GRI) standards currently used by JetBlue. Research shows companies reporting SASB metrics have lower volatility and better stock performance. While SASB provides a more tailored view for aviation investors, including the reports in SEC filings like the 10-K could increase regulatory oversight and investor trust of JetBlue's sustainability data. Adopting the SASB airline standards may signal JetBlue's commitment to transparency and mitigate risks of "greenwashing" claims compared to non-compliant GRI reporting.

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    Jetblue: Relevant Sustainability Leadership (A) : Situational Analysis

    Uploaded by

    Shivani Karkera
    303 views1 page
    JetBlue was considering adopting the Sustainability Accounting Standards Board (SASB) framework for its sustainability reporting. SASB focuses on industry-specific metrics for environmental issues, as opposed to the broader Global Reporting Initiative (GRI) standards currently used by JetBlue. Research shows companies reporting SASB metrics have lower volatility and better stock performance. While SASB provides a more tailored view for aviation investors, including the reports in SEC filings like the 10-K could increase regulatory oversight and investor trust of JetBlue's sustainability data. Adopting the SASB airline standards may signal JetBlue's commitment to transparency and mitigate risks of "greenwashing" claims compared to non-compliant GRI reporting.

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    Group-01_JetBlue Case

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    JetBlue was considering adopting the Sustainability Accounting Standards Board (SASB) framework for its sustainability reporting. SASB focuses on industry-specific metrics for environmental issues, as opposed to the broader Global Reporting Initiative (GRI) standards currently used by JetBlue. Research shows companies reporting SASB metrics have lower volatility and better stock performance. While SASB provides a more tailored view for aviation investors, including the reports in SEC filings like the 10-K could increase regulatory oversight and investor trust of JetBlue's sustainability data. Adopting the SASB airline standards may signal JetBlue's commitment to transparency and mitigate risks of "greenwashing" claims compared to non-compliant GRI reporting.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    303 views1 page

    Jetblue: Relevant Sustainability Leadership (A) : Situational Analysis

    Uploaded by

    Shivani Karkera
    JetBlue was considering adopting the Sustainability Accounting Standards Board (SASB) framework for its sustainability reporting. SASB focuses on industry-specific metrics for environmental issues, as opposed to the broader Global Reporting Initiative (GRI) standards currently used by JetBlue. Research shows companies reporting SASB metrics have lower volatility and better stock performance. While SASB provides a more tailored view for aviation investors, including the reports in SEC filings like the 10-K could increase regulatory oversight and investor trust of JetBlue's sustainability data. Adopting the SASB airline standards may signal JetBlue's commitment to transparency and mitigate risks of "greenwashing" claims compared to non-compliant GRI reporting.

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    © All Rights Reserved
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    of 1

    JetBlue: Relevant Sustainability Leadership (A)

    Situational Analysis

    Way forward

    Was SASB a step in the right direction?

    Although according SASB (Sustainability accounting Standards Board) framework confined to


    environmental issues it comprised of representing over 3000 experts with more than $30 trillion in asset
    management and $15 trillion in company market capitalisation during 2013-16. Also, various academic
    research and analytics have shown the linkages of greater the disclosures of sustainability metrics in line
    with SASB, the lower co-movement with industry and market returns. It was also observed to give good risk
    adjusted stock price performance and profitability margin growth.

    SASB framework consisted industry specific topics which lacked in the GRI Reporting guidelines which can
    investors a broader view of sustainability practices pertaining to the aviation sector to investors. Although in
    case it mentions that GRI focuses on an ESG framework but SASB consist of similar parameter too.
    SASB’s Investor Advisory Group comprises of largest asset owners and asset managers who rely on ESG
    information, this can act as a signal to other potential investors regarding the investment of JetBlue in
    sustainable growth.
    1 Group-01 | PGDM-IM | Batch-01
    If SASB airline standard was adopted should it be included in 10-K? Should the disclosures be made
    according to SASB standards but outside the regulated filings?

    With limited knowledge regarding of Form 10-K filings as per case, it seems JetBlue shall be in
    comparatively better position with adopting of SASB airline standards. This move shall depict JetBlue’s
    commitment and authenticity in driving towards implementation of sustainable practices. The factor that
    showcases its seriousness is the Sarbanes-Oxley Act that shall make directors and officers of JetBlue
    liable of accuracy of financial statements. This shall lead to positive investor sentiments regarding the
    investments made in sustainability practices since they are assured about the figures stated.

    Although JetBlue communicated their sustainability through GRI on various parameters inclusive of various
    dimensions of ESG framework it was not sector specific. So, investors may find it difficult to compare
    among various players in the market. Also, we feel there seems to be probability of accusations of ‘Green
    washing’ in these cases since they are not in compliance with any Authority. Comparatively, SASB
    guidelines disclose in compliance with the SEC requirements which can easily gain investor trust.

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