Sustainability Accounting Standards Board (SASB)

The Sustainability Accounting Standards Board (SASB) developed industry-specific standards to assist companies in disclosing financially material sustainability information to investors. Covering 77 industries, these standards identify the sustainability-related risks and opportunities most likely to impact a company's financial performance, access to capital, and cost of capital over various timeframes. In August 2022, the International Sustainability Standards Board (ISSB) of the IFRS Foundation assumed responsibility for the SASB Standards, committing to maintain, enhance, and evolve them.

Key aspects of SASB Standards include:

• Industry-Specific Metrics: Tailored disclosure topics and metrics for 77 industries, enabling companies to provide relevant and comparable sustainability information to investors.
• Investor Focus: Emphasis on sustainability issues that are likely to affect financial performance, aiding investors in decision-making processes.
• Global Applicability: Designed for use by companies worldwide, facilitating consistent and comparable sustainability disclosures across different markets and jurisdictions.

By utilizing SASB Standards, companies can effectively communicate their management of sustainability-related risks and opportunities, thereby enhancing transparency and building investor confidence.

Source(s):

• Sustainability Accounting Standards Board (SASB). (n.d.). About us.
• IFRS Foundation. (n.d.). SASB Standards.

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