The Sustainability Accounting Standards Board (SASB) is an independent nonprofit organization that focuses on developing and disseminating industry-specific sustainability accounting standards for companies. The aim of SASB is to provide investors and companies with a standardized set of metrics and disclosures related to financially material sustainability issues.

Key Matters and Considerations in ESG

SASB’s standards are designed to help companies identify, manage, and communicate their sustainability performance in a way that is relevant to investors and other stakeholders. The standards cover a wide range of industries and address issues such as climate change, environmental management, human capital, social capital, business ethics, and more.

SASB’s approach is based on the belief that sustainability factors can have a material impact on a company’s financial performance and long-term value. By providing industry-specific metrics and guidance, SASB enables companies to better understand and communicate their sustainability risks, opportunities, and performance in a standardized and comparable manner.

SASB standards are developed through a rigorous and transparent process that involves extensive research, public consultation, and engagement with a wide range of stakeholders, including investors, companies, and subject-matter experts. The standards are updated regularly to reflect changes in market conditions, stakeholder expectations, and emerging sustainability issues.

Investors can use SASB standards to assess companies’ sustainability performance and risks within their investment portfolios. The standardized disclosures enable investors to compare companies within an industry and make more informed investment decisions based on sustainability factors.

For companies, adopting SASB standards can help enhance their sustainability reporting and disclosure practices, improve transparency, and strengthen stakeholder relationships. By providing clear guidance on what information is material to investors, SASB standards assist companies in focusing their sustainability efforts and reporting on the most relevant and financially significant issues.

SASB collaborates with other organizations and initiatives in the field of sustainability reporting and disclosure, including the Global Reporting Initiative (GRI), the Task Force on Climate-related Financial Disclosures (TCFD), and others, to promote harmonization and alignment in sustainability reporting practices.

In summary, the Sustainability Accounting Standards Board (SASB) plays a crucial role in advancing the integration of sustainability into financial reporting. By developing industry-specific standards, SASB helps companies and investors effectively assess and communicate sustainability performance, risks, and opportunities, ultimately driving greater transparency and accountability in the pursuit of sustainable and responsible business practices.