The Sustainability Accounting Standards Board (SASB) Standards provide industry-specific metrics and disclosure requirements for reporting material sustainability information to investors.

SASB Standards

The SASB Standards represent a comprehensive framework for companies to report on sustainability metrics that are financially material to their business operations. Developed by the Sustainability Accounting Standards Board (now part of the Value Reporting Foundation), these standards provide industry-specific guidance for disclosing environmental, social, and governance (ESG) information to investors.

Core Characteristics

Industry-Specific Focus: Unlike generic ESG frameworks, SASB Standards are tailored to 77 distinct industries, recognizing that sustainability challenges vary significantly across sectors
Financial Materiality: Centers on sustainability issues that directly impact financial performance
Evidence-Based: Developed through extensive research and market consultation
Investor-Focused: Designed primarily for communication with investors and other capital market participants

Structure and Implementation

The standards are organized around five key dimensions:

Environment
- Resource management
- Climate risk
- Environmental impacts
Social Capital
- Human rights
- Customer privacy
- Data security
- Product quality
Human Capital
- Labor practices
- Employee health and safety
- Workforce diversity
Business Model and Innovation
- Product design
- Supply chain management
- Circular Economy
Leadership and Governance
- Business ethics
- Competitive behavior
- Risk management

Integration with Other Frameworks

SASB Standards are designed to work in conjunction with other major reporting frameworks:

Market Adoption

The standards have gained significant traction among:

Public companies
Investment managers
Asset owners
ESG Rating Agencies

Recent Developments

In 2021, SASB merged with the International Integrated Reporting Council (IIRC) to form the Value Reporting Foundation, which was subsequently consolidated into the IFRS Foundation in 2022. This merger aims to simplify the corporate reporting landscape and create more unified sustainability disclosure standards.

Significance

SASB Standards play a crucial role in:

Improving transparency in corporate sustainability performance
Enabling informed investment decisions
Supporting Corporate Sustainability initiatives
Facilitating ESG Integration in investment processes

The standards continue to evolve as sustainability reporting requirements become increasingly stringent and stakeholders demand more detailed and comparable ESG information.