What is SASB?

EcoVision
Oct 30
2 min read

Updated: Nov 1

The Sustainability Accounting Standards Board (SASB) is an independent, non-profit organization that develops sustainability disclosure standards to help businesses communicate financially material sustainability information to investors.

SASB focuses on identifying sustainability factors that are most relevant to financial performance, industry by industry.

Before its integration into the International Sustainability Standards Board (ISSB) in 2022, the Sustainability Accounting Standards Board (SASB) was headquartered in San Francisco, California, USA.

Key Features of SASB

Industry-Specific Standards:
- SASB provides 77 industry-specific standards, each tailored to address the unique sustainability challenges and opportunities in different sectors, such as energy, healthcare, transportation, and more.
Focus on Financial Materiality:
- SASB emphasizes financial materiality—sustainability factors that directly impact a company's financial performance, ensuring relevance to investors and other financial stakeholders.
Alignment with Existing Frameworks:
- SASB complements other sustainability frameworks like TCFD (Task Force on Climate-related Financial Disclosures) and the Global Reporting Initiative (GRI) by focusing specifically on materiality for investors.
Quantitative and Comparable Data:
- SASB standards encourage the use of quantifiable metrics to enhance comparability and consistency across companies and industries.

SASB and ISSB Integration

In August 2022, the Value Reporting Foundation (which included SASB and the Integrated Reporting Framework) merged into the International Sustainability Standards Board (ISSB). Now, SASB standards are being used as a foundation for the ISSB's development of global sustainability disclosure standards.

SASB's Role Post-Merger:
- SASB's industry-specific approach and focus on materiality have been integrated into the ISSB's IFRS S1: General Sustainability-related Disclosures and IFRS S2: Climate-related Disclosures standards.

Importance of SASB

Investor-Focused Reporting:
- SASB helps companies disclose sustainability information that is most relevant to investors, supporting informed decision-making.
Global Applicability:
- Although originally developed for U.S. markets, SASB standards are now widely used globally.
Improving Accountability:
- By providing clear metrics for sustainability issues, SASB encourages businesses to adopt more transparent and responsible practices.