Food & Beverage
SASB staff is gathering and evaluating evidence of whether supply chain management related issues are likely to have material impacts on the financial condition or operating performance of companies in the tobacco industry.
Tobacco cultivation results in environmental and social externalities. Tobacco manufacturers monitor and engage with suppliers on these issues, and investors have indicated interest in disclosures on tobacco supply chain management. The Tobacco Industry Standard does not currently include any topics or metrics on supply chain management and material sourcing.
This topic has been previously considered by the Standards Board, and was decided to not be added to the Tobacco Industry Standard due to lack of evidence at the time of strong consensus that the disclosure topic is reasonably likely to constitute financially material information for most companies in the industry. Subsequent market feedback received during consultations and via public comments from investors and companies have encouraged SASB to re-evaluate the decision.
- Phase 1 - Initial Research
- Phase 2 - Stakeholder Consultation
- Phase 3 - Post-Consultation Analysis
- Phase 4 - Ongoing Research
- Phase 5 - Completed
Staff research; market consultation
Published Documents & Supplemental Materials
There are no published documents or drafts at this time.
- SASB Initiates Research into Tobacco Supply Chains, March 2020, online blog
Board Materials & Decisions
Board Meeting Outcomes
- Staff proposed to the board a new standard-setting proposal on evaluating supply chain management as a new topic within the Tobacco Industry Standard.
- After discussion with staff and evaluation of historical market input and staff’s research evidence, the board decided that the project is more appropriate as a Research Project at this stage for staff to further evaluate evidence of financial materiality of the topic.
For a full list of past and upcoming Standards Board meetings, as well as associated materials, please visit our Board Meetings Calendar & Archive.
The staff has prepared this summary for informational purposes only. Any Standards Board decisions are tentative and do not change current accounting. Official positions of SASB are determined only after extensive due process and deliberations.