Sustainability Accounting Standards Board (SASB)

Learn about SASB, a nonprofit organization that was founded by Jean Rogers in 2011 to develop sustainability accounting standards.

Founded in 2011 by Jean Rogers, the Sustainability Accounting Standards Board (SASB) is a nonprofit organization that aims to develop sustainability accounting standards. SASB focuses on effectively connecting enterprises and investors through disclosing enterprises’ financially material sustainability information. SASB standards are available to eleven sectors and 77 industries.

SASB divides the “universe” of sustainability issues into five major dimensions and 26 issues. The five major dimensions are the environment, social capital, human capital, business model & innovation, and leadership & governance. The “materiality map” displays the 26 issues SASB evaluates under the five dimensions for different enterprises.

Unlike the traditional industry classification system, SASB uses the Sustainable Industry Classification System (SICS) to categorize similar companies based on their sustainability-related risks and opportunities to provide specific industry measurements. Utilizing the SICS Look-Up Tool, each enterprise can select its corresponding SASB standard indicators according to its identified SICS sector. For instance, under the SICS system, Taiwan Semiconductor Manufacturing Company (TSMC) belongs to the technology & communications sector and the semiconductors industry. After an industry (semiconductors) is selected, the enterprise (TSMC) has access to its materiality map.

The enterprise can also download its SASB Standards report, which provides details on the listed relevant issues and disclosure topics that are financially material to the business industry and suggested associated accounting and assurance metrics. Enterprises may also report with SASB standards to publicize and communicate their financially material sustainability information to investors. Click on the link to browse through reported companies and view their reports. https://www.sasb.org/company-use/sasb-reporters/

Beginning in August 2022, SASB has consolidated under the International Sustainability Standards Board (ISSB) of the International Financial Reporting Standards (IFRS) Foundation. ISSB will continue building on SASB’s industry-based standards and supports and encourages all usage of the SASB standards until the IFRS Sustainability Disclosure Standards replace SASB Standards.

Learn more about SASB by visiting their site: https://www.sasb.org/