Industries Specific - SASB
- EcoVision
- Mar 5
- 3 min read
SASB (Sustainability Accounting Standards Board) Standards are industry-specific ESG disclosure standards built for investors.
They focus on a short list of sustainability topics that are more likely to affect a company’s financial performance (often described as “financial materiality”). (Compared to the impact analysis of GRI...)
1) What SASB is (and what it is not)
What it is:
A set of 77 industry standards (now maintained by the ISSB / IFRS Foundation)
Discloses decision-useful, comparable metrics for each industry
Intended primarily for capital markets users (investors, lenders)
What it is not:
Not a “one-size-fits-all” ESG checklist
Not mainly designed for broad stakeholder reporting like many GRI disclosures (although companies often use both!)
2) Why sector and industry differences matter in SASB
SASB is structured around the idea that ESG risks vary by business model.
For example:
A bank faces ESG exposure through financed emissions, conduct, data security, and systemic risk.
A manufacturer faces ESG exposure through energy use, emissions, labor safety, waste, and supply chain practices.
So SASB creates different metrics, definitions, and accounting boundaries depending on the industry, even if two companies are in the same “sector” in a broad sense.
(Sector is above the Industry)
3) Sector vs. Industry (SASB’s logic)
Sector (high level): a broad grouping, e.g., “Industrial”, “Consumer Goods”, “Financials”, “Technology & Communications.”
Industry (specific): a narrower category that reflects how value is created, e.g., “Auto Parts”, “Electrical & Electronic Equipment”, “Processed Foods”, “Internet Media & Services.”
In SASB, the industry level is where the disclosure requirements become concrete (exact metrics, calculation methods, and boundaries).
4) What changes when you move from one industry to another
Even within the same broad sector, SASB topics and KPIs can shift a lot:
Example A: Two “Industrial” industries
(i) Construction materials
Likely focus: energy intensity, process emissions, air quality, hazardous waste, product lifecycle impacts.
(ii) Industrial machinery & goods
Likely focus: product energy efficiency, supply chain management, worker safety, materials sourcing, operational emissions.
Example B: Two “Technology” industries
(i) Semiconductors
Likely focus: water management, hazardous chemicals, energy use, yield-related waste, supply chain.
(ii) Software & IT services
Likely focus: data privacy, data security, service reliability, human capital, energy use in data centres (where relevant).
The point: SASB asks companies to report on what is most likely to move the needle financially for that business model.
5) How SASB relates to ISSB (IFRS S1/S2) and TCFD
IFRS S1/S2 set the overall investor-focused disclosure architecture (governance, strategy, risk management, metrics/targets; climate specifics in S2).
SASB often provides ready-made, industry metrics that can be used to populate parts of IFRS S1 (and sometimes S2).
So for many companies, SASB is a practical “metric library” that supports ISSB-aligned reporting.
6) Practical guidance: how to choose the right SASB industry specific standard
Identify your primary revenue-generating activity (not just your legal entity name).
Use SASB’s industry classification to select the closest industry standard. (SICS)
If you operate across multiple business lines, consider disclosing against more than one standard, or explain boundary choices clearly.
Start with the top 5–8 metrics where data quality is strongest, then expand.
Good news is, step by step and via the collaboruation and efforts from different parties. We can expect that the disclosure standards will become more and more consolidate and standardize in the coming future!
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