Investors view SASB Standards as the main way for companies to communicate their sustainability information in a standardized, comparable format. Investors perceive SASB Standards as being industry-based, metric-driven, focused on financial materiality and enable the integration of sustainability considerations into investment and stewardship decisions across global portfolios and asset classes. Currently, up to 2230 companies across 70 jurisdictions and 66 markets are reporting in alignment with the SASB metrics. Because SASB Standards are tailored for unique industries and complement other ESG standards and frameworks, companies of all types in all industries can easily adopt their guidance. SASB Standards appeal to companies and investors for different reasons.Ĭompanies can use SASB Standards to help meet investor needs for comparable, consistent and financially material sustainability disclosures. Users can compare up to four industries to understand differences and similarities in their disclosure topics. Materiality finder: This is a tool for comparing companies or industries on the Materiality Map and finding disclosure topics relevant to specific industries. The map helps organizations understand what ESG issues are relevant to their industries and why they need to be measured and reported. The industries are grouped into the following broader categories: consumer goods, extractives and mineral processing, financials, food and beverage, health care, renewable resources and alternative energy, resource transformation, services, technology and communications, and transportation. The sustainability issues are categorized under five main dimensions (sometimes referred to as the SASB index): environment, social capital, human capital, business model and innovation, and leadership and governance. Materiality map: The materiality map visually depicts how twenty-six general sustainability issues are financially material for seventy-seven industries (aligned to the US-based Sustainable Industry Classification System, or SICS). The SASB framework includes two tools to help organizations make industry-specific disclosures and report in alignment with a globally accepted reporting framework: This industry-specificity differentiates the SASB Standards from other sustainability reporting frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD) (link resides outside ibm.com) and International Integrated Reporting Council (IIRC) (link resides outside ibm.com). The SASB Standards address the ‘materiality’ of ESG issues based on the nuances of each industry. Market-informed: The Standards Board solicits inputs from relevant stakeholders-companies, investors, and other market participants-in considering sustainability issues that should be disclosed for an industry. Industry-specificity: The SASB Standards are focused on improving the disclosure of industry-specific ESG issues because not all sustainability issues matter equally to each industry, and sometimes the same sustainability issue can manifest differently across industries. To ensure the relevance of the ESG issues to an industry over time, it also considers the regulatory, environmental and financial drivers for the given industry. Sustainability information is considered financially material if omitting or misrepresenting it could substantially alter the risk profile of a company or influence capital allocation.Įvidence-based: The SASB Standards Board (the standard-setting arm of SASB) gathers evidence from external sources to establish the financial impact of each sustainability issue identified across all industries addressed. The majority of the SASB metrics are relevant for companies and investors globally, and the remaining are being reviewed to enhance their global applicability.įinancial materiality: The SASB Standards strive to identify the ESG issues most relevant to the financial performance of companies in 77 industries. Global applicability: The SASB Standards aim to provide investors with sustainability disclosures that are “relevant, reliable and comparable across companies on a global basis”. SASB’s standard-setting approach-grounded in industry-specificity and financial materiality-provides a solid foundation for disclosing sustainability information.
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