Sustainability Accounting Standards Board (SASB)

Summary

  • A non-profit organisation founded in 2011 by Jean Rogers.
  • SASB standards are intended for voluntary use by public companies in making disclosures on material sustainability factors.
  • Joint research by the Global Reporting Initiative (GRI) and the SASB found their framework standards “complement rather than substitute the other… and offer a holistic picture of corporate performance.”
  • In November 2020, it was announced that the SASB and the International Integrated Reporting Council intended to merge into the Value Reporting Foundation. The sole aim of the Foundation is to create a comprehensive reporting framework for investors.

Objectives

  1. To establish industry specific disclosure standards across ESG topics.
  2. To provide a more complete view of a corporation’s performance on material factors likely to affect its ability to create long-term value.
  3. To provide decision-useful information to investors.

Framework

SASB’s sustainability topics are classified under five comprehensive sustainability aspects. These topics include:

  • Environment
  • Social Capital
  • Human Capital
  • Business Model and Innovation
  • Leadership and Governance

These topics form the “Materiality Map.” Every individual industry has its own unique set of corporate activities and has a unique sustainability profile.