SASB

The Sustainability Accounting Standards Board (SASB) Standards provide industry-specific guidance on financially material sustainability topics. Now maintained by the IFRS Foundation alongside IFRS S1/S2, SASB Standards cover 77 industries across 11 sectors, identifying the ESG issues most likely to affect enterprise value in each industry.

Framework Overview

SASB Standards use financial materiality as the basis for determining which sustainability topics companies should disclose. Each industry standard identifies 3-8 material topics from a universe of 26 general ESG issues.

11 Sectors Covered

1. Consumer Goods — Apparel, household products, toys
2. Extractives & Minerals Processing — Oil & gas, metals & mining
3. Financials — Banks, insurance, asset management
4. Food & Beverage — Agriculture, restaurants, beverages
5. Health Care — Biotechnology, pharmaceuticals, healthcare delivery
6. Infrastructure — Electric utilities, water utilities, waste management
7. Renewable Resources & Alternative Energy — Biofuels, solar, wind
8. Resource Transformation — Chemicals, construction materials, paper
9. Services — Advertising, education, hotels & lodging
10. Technology & Communications — Hardware, software, telecommunications
11. Transportation — Airlines, automobiles, rail

26 General ESG Issues

SASB organizes sustainability topics into 5 dimensions:

Environment: GHG emissions, air quality, energy management, water & wastewater, waste & hazardous materials, ecological impacts

Social Capital: Human rights & community relations, customer privacy, data security, access & affordability, product quality & safety, customer welfare, selling practices & product labeling

Human Capital: Labor practices, employee health & safety, employee engagement diversity & inclusion

Business Model & Innovation: Product design & lifecycle management, business model resilience, supply chain management, materials sourcing & efficiency, physical impacts of climate change

Leadership & Governance: Business ethics, competitive behavior, management of legal & regulatory environment, critical incident risk management, systemic risk management

Why SASB Matters

Investor Focus

SASB Standards were developed with significant investor input to focus on financially material information. Over 2,700 organizations globally use SASB Standards, including major asset managers like BlackRock, State Street, and Vanguard.

IFRS Integration

In 2022, SASB merged with the IFRS Foundation. SASB Standards now serve as the industry-specific guidance for IFRS S1 General Requirements. Companies reporting under IFRS S1/S2 are expected to reference SASB Standards for their industry.

Comparability

SASB's industry-specific approach enables peer comparison — investors can compare sustainability performance across companies in the same industry using standardized metrics.

Primary Source Documents

From ESG Library

• ESG Reporting Made Simple (IFRS/SASB) — Comprehensive SASB implementation guide with industry-specific examples

View all books →

How to Use SASB Standards

Step 1: Identify Your Industry
SASB uses the Sustainable Industry Classification System (SICS) to categorize companies. Find your industry standard at sasb.ifrs.org/standards.

Step 2: Review Material Topics
Each industry standard identifies 3-8 financially material sustainability topics specific to that industry. Review the disclosure topics and metrics.

Step 3: Collect Data
Gather quantitative and qualitative data for each metric. SASB provides technical protocols explaining calculation methodologies.

Step 4: Disclose
Report SASB metrics in annual reports, sustainability reports, or dedicated SASB disclosures. Many companies include SASB tables in their 10-K filings.

Step 5: Assure
Consider third-party assurance for key SASB metrics to enhance credibility.

Industry Examples

Technology & Communications: Software & IT Services

Material Topics:

• Environmental Footprint of Hardware Infrastructure (energy, water, waste)
• Data Privacy & Freedom of Expression
• Data Security
• Recruiting & Managing a Global, Diverse & Skilled Workforce
• Intellectual Property Protection & Competitive Behavior
• Managing Systemic Risks from Technology Disruptions

Key Metrics:

• TC-SI-130a.1: Total energy consumed, percentage grid electricity, renewable percentage
• TC-SI-230a.1: Number of data breaches, percentage involving personally identifiable information (PII), number of users affected
• TC-SI-330a.1: Percentage of employees that are foreign nationals, percentage in-country
• TC-SI-330a.2: Employee engagement percentage

Financials: Commercial Banks

Material Topics:

• Data Security
• Access & Affordability
• Product Design & Lifecycle Management
• Business Ethics
• Systemic Risk Management

Key Metrics:

• FN-CB-230a.1: Number of data breaches, percentage involving PII, number of account holders affected
• FN-CB-240a.1: Number and amount of loans outstanding qualified to programs designed to promote small business and community development
• FN-CB-410a.1: Commercial and industrial credit exposure, by industry
• FN-CB-510a.1: Total amount of monetary losses as a result of legal proceedings associated with fraud, insider trading, anti-trust, anti-competitive behavior, market manipulation, malpractice, or other related financial industry laws or regulations

Consumer Goods: Apparel, Accessories & Footwear

Material Topics:

• Management of Chemicals in Products
• Environmental Impacts in the Supply Chain
• Labor Conditions in the Supply Chain
• Raw Materials Sourcing

Key Metrics:

• CG-AA-250a.1: Percentage of raw materials third-party certified to environmental and/or social sustainability standards, by standard
• CG-AA-430a.1: Percentage of Tier 1 supplier facilities audited, percentage non-compliant with code of conduct, corrective action rate
• CG-AA-440a.1: Description of environmental and social risks in supply chain

SASB vs. GRI

Financial Materiality vs. Impact Materiality

SASB: Focuses on financially material topics—ESG issues reasonably likely to affect enterprise value. Investor-focused, industry-specific.

GRI: Focuses on impact materiality—the organization's impacts on economy, environment, people. Stakeholder-focused, universal standards.

IFRS S1 (2024): Requires companies to consider both financial materiality (SASB approach) and impact materiality when impacts create risks/opportunities for the company.

Complementary Use: Many companies report using both SASB (for investors) and GRI (for broader stakeholders).

SASB Adoption Trends

Global Usage: Over 2,700 organizations use SASB Standards as of 2024, including 70% of S&P 500 companies.

Regulatory Integration:

• IFRS S1/S2: SASB Standards are the industry-specific guidance for IFRS S1
• EU CSRD: European Sustainability Reporting Standards (ESRS) reference SASB for sector-specific guidance
• SEC Climate Rule (proposed): References SASB for industry-specific climate metrics

Investor Demand: Major asset managers including BlackRock, Vanguard, State Street, Fidelity require SASB disclosures from portfolio companies.

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