What SASB standards actually involve

SASB (Sustainability Accounting Standards Board) standards identify the sustainability topics and disclosure metrics most likely to be financially material for companies in specific industries. Now maintained by the IFRS Foundation following the merger with the Value Reporting Foundation, SASB standards cover 77 industries and specify both quantitative metrics and qualitative disclosure requirements. They are designed primarily to serve investors making financial decisions, and are referenced by IFRS S2 as the source of industry-specific metrics for climate disclosure. SASB-aligned reporting helps investors compare companies within the same sector on the sustainability metrics that are most relevant to financial performance.

Why it's harder in practice than it looks

Industry classification is not always straightforward for diversified businesses

SASB's 77 industry classifications require companies to identify which sector or sectors they belong to. Diversified conglomerates, companies undergoing strategic transformation, or businesses with significant operations across multiple sectors must apply SASB standards for each relevant segment, which can create significant additional disclosure work and complexity in presenting a coherent narrative across different sets of metrics.

SASB metrics require specific data that many companies do not currently collect

SASB disclosure topics are chosen for financial materiality but may cover data that companies have not historically tracked, specific waste streams, worker health and safety metrics by category, or customer privacy incident statistics. Closing these data gaps requires investment in data collection systems that may span multiple operational functions.

SASB and GRI metrics overlap but are not identical

Companies reporting against both GRI and SASB (or ISSB, which references SASB) frequently discover that similar topics are covered by both frameworks but with different definitions, calculation methodologies, or units of measurement. Producing consistent disclosures across frameworks requires careful alignment of underlying data collection methods.

Investor familiarity with SASB varies significantly

While SASB is well established in US markets and increasingly known in European markets following the ISSB integration, not all investors understand or prioritise SASB-aligned disclosures. Companies should assess whether their primary investor base uses SASB metrics before investing heavily in SASB-specific reporting infrastructure beyond what is required by ISSB.

What good looks like

A well-structured SASB disclosure identifies the correct industry standards for the company's specific operations, collects and verifies the required quantitative metrics, provides the required qualitative context for each topic, and presents disclosures in a SASB content index that maps each required disclosure to the relevant section of the report. SASB disclosures are most valuable when they are integrated with ISSB climate disclosures and presented alongside financial data that contextualises the sustainability metrics.

When to bring in external support

Industry classification, metric definition alignment, and integration of SASB disclosures with ISSB and CSRD reporting frameworks all benefit from external expertise. Leafr's network includes SASB and ISSB reporting specialists who help companies identify applicable standards, close data gaps, and produce investor-grade disclosures that are consistent across frameworks.

Frequently asked questions

What are the SASB Standards and what happened to the SASB organisation?

SASB (Sustainability Accounting Standards Board) developed industry-specific sustainability accounting standards designed for investor-focused disclosure. In 2021, SASB merged with the International Integrated Reporting Council to form the Value Reporting Foundation, which was subsequently consolidated into the IFRS Foundation in 2022. SASB standards are now maintained by the IFRS Foundation and are referenced in IFRS S2 as the source of industry-specific metrics. The standards themselves remain unchanged and are freely available on the IFRS Foundation website.

How are SASB standards used within IFRS S2?

IFRS S2 (Climate-related Disclosures) requires companies to disclose industry-based metrics from the relevant SASB industry standard as part of their climate-related financial disclosures. The specific metrics required depend on the industries in which the company operates. For example, a bank would apply SASB's Commercial Banks standard, which includes metrics on financed emissions and climate risk exposure; a retailer would apply the relevant retail standard, covering energy management and fleet emissions.

How many SASB industry standards are there?

SASB covers 77 industries organised across 11 sectors: Consumer Goods, Extractives and Minerals Processing, Financials, Food and Beverage, Health Care, Infrastructure, Resource Transformation, Services, Technology and Communications, Transportation, and Renewable Resources and Alternative Energy. Each industry has its own standard identifying the sustainability topics and metrics most likely to be financially material for companies in that sector.

Are SASB disclosures suitable for non-US companies?

Yes. While SASB was developed by a US organisation with US capital markets in mind, the industry-specific approach to sustainability disclosure is applicable globally. Following integration into the IFRS Foundation, SASB standards are increasingly used internationally alongside ISSB standards. European companies subject to CSRD who also report to ISSB standards will typically need to include SASB industry-specific metrics as part of their ISSB-aligned disclosures.

What is the relationship between SASB and GRI?

GRI and SASB address different disclosure needs. GRI focuses on the organisation's impacts on the environment and society (impact materiality) for a broad stakeholder audience. SASB focuses on sustainability information that is financially material to investors (enterprise value / financial materiality) for a capital markets audience. Both can be used simultaneously to satisfy different stakeholder requirements. The GRI has published a mapping of the topics covered by both frameworks to help companies identify overlaps and gaps in a combined disclosure programme.