The evolution of SASB Standards
The Sustainability Accounting Standards Board (SASB) was founded as a nonprofit organisation in 2011 to help businesses communicate information about the effects of sustainability-related risks and opportunities on their performance. It took an industry-based approach, recognising that investors require industry-specific information and that this focus enables companies to focus on topics and information most relevant to their business activities.
In November 2021, the IFRS Foundation announced its plans to establish the International Sustainability Standards Board (ISSB) to develop a comprehensive global baseline of sustainability-related financial disclosures to meet investors’ information needs. The IFRS Foundation also announced plans to consolidate with the Value Reporting Foundation (VRF) and the Carbon Disclosure Standards Board (CDSB). The VRF officially consolidated into the IFRS Foundation on 1 August 2022.
Historical information about the SASB standard-setting process
The SASB Standards were published in 2018, following six years of research and extensive market input. To maintain the SASB Standards, the SASB Standards Board conducted research, engaged with corporate professionals, investors and subject matter experts, and monitored existing, evolving and emerging sustainability issues. The SASB Standards Board approached changes to the Standards through a rigorous due process which included evidence-based research, broad and balanced stakeholder participation, public transparency and independent oversight. As a complement to the governance of the SASB Standards Board, the SASB Standards Advisory Group was a committee of volunteer industry experts that provided ongoing feedback on the implementation of SASB standards and emerging sustainability issues. For documentation of past Standard-setting activities, please visit the Standard-Setting Archive.
Following the publication of the SASB Standards in 2018, the SASB Standards Board and technical staff approached updates to the Standards using a project-based model, enabling focused Standard-setting to effectively address key issues. This model provided the ability to address broad themes, regulatory changes and other trends which affected multiple sectors, while still retaining the ability to pursue targeted, industry-specific issues where appropriate. Research and market engagement provided insights that impacted the prioritisation of projects. The Standard-Setting archive contains details on completed projects as well as projects transitioned to the ISSB.
The key activities that the SASB Standards Board engaged in are described below.
The key activities that technical staff engaged in that informed SASB Standards Board decisions are described below.
Monitoring Industries and Issues
Technical staff worked under the guidance of the SASB Standards Board to monitor industries and issues to develop research projects. These investigative projects led to staff recommendations for the SASB Standards Board, which then determined whether the findings merited the initiation of a Standard-setting project.
Exposure Draft Development
Technical staff pursued a variety of activities, centred around research and consultation, to support the development of a proposed Standards update. These activities included consultation with the SASB Standards advisory groups, and/or other interested persons and organisations and/or the public issuance of briefing documents or discussion papers.
Public Comment Period
The SASB Standards Board solicited and encouraged investors, companies and subject matter experts to submit comments on any proposed Standards update during formal public comment periods. Public comments were a key input that the SASB Standards Board considered when voting whether to approve the proposed new or amended Standards.
Public Comment Analysis
After a public comment period closed the SASB Standards Board decided on whether to vote to approve the proposed Standards update. To support such deliberations, technical staff produced summaries of the feedback received, or summaries of other related research and/or consultations.
