Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, a new industry classification was needed. SASB created the Sustainable Industry Classification System® (SICS®) to solve that problem. The differences between SICS® and traditional industry classification systems can be categorized in three types: (1) new thematic sectors; (2) new industries with unique sustainability profiles; and (3) industries classified in different sectors.
Unlike other industry classification systems—which use common financial and market characteristics— SICS® uses sustainability profiles to group similar companies within industries and sectors. In SICS®, a company’s sustainability risks and opportunities are more important for its classification than other traditional factors, such as economic cycles and revenue streams. SASB determines a company’s SICS® classification by overlaying its sustainability framework to other industry taxonomies.
This tool allows you to determine the primary SICS® industry for tens of thousands of companies listed around the world, enabling investors and corporations to determine which SASB sustainability accounting standard is applicable to that company. Companies are categorized under a single primary SICS® industry. Integrated firms with revenue streams from different industries, for example, will only appear under one industry. Please contact SASB by clicking on the flag (⚑) next to the company name if you think that your company’s “primary” industry needs to be reviewed. For guidance for companies that report in multiple industries, please see the “Determine Which Industry Standards Apply” section of the SASB Implementation Primer.
A company considering use of SASB standards self-determines which standard(s) is relevant, which disclosure topics are financially material to its business, and which associated metrics to report, taking relevant legal requirements into account. In general, a company would use the SASB standard for its primary industry as identified in SICS®. However, companies with substantial business in multiple SICS® industries can consider reporting on these additional SASB industry standards.
If you are unable to find your company or think the classification needs to be reviewed, please contact us using our classification request form. For any SICS®-related inquiries please email us at [email protected].