Deciphering SASB Standards
A Guide to Sustainable Business Reporting
The Sustainability Accounting Standards Board (SASB) Standards are a framework of sustainability-related disclosure standards designed to help businesses around the globe identify, manage, and communicate financially material sustainability information to their investors. These standards are recognized globally for their role in enhancing and streamlining sustainability reporting.
Understanding SASB Standards
Overview: The SASB Standards cater to 77 different industries, addressing sustainability issues critical for investor decision-making. The development process involved evidence-based research, broad participation from various stakeholders, and oversight by the independent SASB Standards Board.
Components: Each standard includes disclosure topics (about six per industry), metrics (about 13 per industry), technical protocols for metric consistency, and activity metrics for quantifying specific activities or operations.
Application Guidance: For those implementing SASB Standards in conjunction with ISSB Standards, specific ISSB application guidance should be considered. Alternatively, SASB Standards Application Guidance is available for independent use.
Implementation Process
Industry Classification: Utilize the Sustainable Industry Classification System® (SICS®) to determine the applicable SASB Standards. SICS® groups industries based on their sustainability profiles, different from traditional industry classification systems.
Materiality Finder and Map: These tools assist in identifying relevant industry standards and comparing disclosure topics across various industries.
Disclosure Topics: Review and identify applicable SASB disclosure topics for your industry. It's important to note that the SASB Standards serve as a guide, not an exhaustive list, and may not include every sustainability factor applicable to a company.
Relation to ISSB
The International Sustainability Standards Board (ISSB) has assumed responsibility for the SASB Standards as of August 2022. The ISSB Standards form the global baseline for sustainability-related disclosures and build upon the SASB Standards and the TCFD Recommendations. Companies using SASB Standards will find them a solid foundation for adopting IFRS Sustainability Disclosure Standards in the future.
SASB Standards are critical in the application of the first two IFRS Sustainability Disclosure Standards: IFRS S1 (General Requirements for Sustainability-related Disclosures) and IFRS S2 (Climate-related Disclosures). The ISSB encourages continued use of SASB Standards, committing to their maintenance and enhancement.
In summary, SASB Standards provide a detailed and industry-specific framework for businesses to report sustainability-related risks and opportunities. Their integration with ISSB standards highlights their importance and relevance in global sustainability reporting. For more detailed information and to download the standards, visit the SASB website and the IFRS Foundation's page on SASB Standards.
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