Why Companies Use SASB Standards
As of August 2022, the International Sustainability Standards Board (ISSB) of the IFRS Foundation assumed responsibility for the SASB Standards. The ISSB has committed to build on the industry-based SASB Standards and leverage SASB’s industry-based approach to standards development. The ISSB encourages preparers and investors to continue to provide full support for and to use the SASB Standards until IFRS Sustainability Disclosure Standards replace SASB Standards.
Businesses face challenges and opportunities affecting their long-term sustainability, from climate change and resource constraints to urbanization and technological innovation. Institutional investors need to evaluate how these issues impact companies to inform their investment decisions. SASB Standards help companies around the world identify, measure, and manage the subset of ESG topics that most directly impact long-term enterprise value creation.
SASB Standards meet investor needs.
Investors across asset classes want comparable, consistent, and reliable data on financially material sustainability factors. These same investors recognize SASB Standards as a core tool to achieve this disclosure.
SASB Standards are cost-effective.
On average, each standard has six disclosure topics and 13 accounting metrics.
SASB Standards are industry-based.
The issues that are most likely to impact financial performance vary by industry. Industry-based disclosure reduces costs and minimizes noise by surfacing the most relevant information.
SASB Standards can be used with other frameworks and standards.
SASB Standards are a practical tool for implementing principles-based frameworks, including those provided by the TCFD and IIRC. Many companies use both SASB and GRI Standards to meet the needs of various audiences. Additionally, the SASB Standards have been consolidated into the materials of the IFRS Foundation as implementation guidance. This is consistent with [draft] IFRS Sustainability Disclosure Standard S1 General Requirements for Disclosure of Sustainability-related Financial Information, which requires companies to consider SASB Standards to identify sustainability-related risks and opportunities and to develop appropriate disclosures. (Certain elements of SASB Standards have also been incorporated into the industry-based requirements of IFRS S2 Climate-related Disclosures.)