Sustainability Accounting Standards Board (SASB)

In today’s business landscape, sustainability has become a key factor for long-term success. Investors, consumers, and other stakeholders increasingly demand transparency and accountability from companies regarding their environmental, social, and governance (ESG) impact.

In this context, the Sustainability Accounting Standards Board (SASB) plays a crucial role by providing a standardized framework for sustainability disclosure.

What is SASB?

The Sustainability Accounting Standards Board (SASB) is an independent, nonprofit organization founded in 2011 to develop and maintain sustainability accounting standards for publicly traded companies. These standards help businesses identify, measure, and disclose financially material ESG information that is relevant to investors.

The importance of carbon footprint measurement

The carbon footprint, which measures a company’s greenhouse gas (GHG) emissions, is a key sustainability indicator. SASB recognizes the importance of measuring and disclosing carbon emissions and provides industry-specific guidelines for companies in various sectors.

SASB Standards and the carbon footprint

SASB standards are organized by industry and address sector-specific sustainability issues. For each industry, SASB identifies the most relevant ESG topics and provides disclosure metrics and criteria.

In the context of the carbon footprint, SASB standards may require companies to disclose:
✔ Direct and indirect GHG emissions (Scope 1, 2, and 3).
✔ Emission reduction targets and progress toward achieving them.
✔ Climate-related risks and opportunities.
✔ Carbon emissions management strategies.

Benefits of using SASB Standards

Adopting SASB standards offers numerous benefits for companies, including:

- Enhanced transparency and accountability: Standardized sustainability reporting improves transparency and accountability for investors and stakeholders.
- Better-informed investment decisions: Investors increasingly use ESG information to make investment choices. Companies that disclose relevant data using SASB standards can attract capital and improve financing opportunities.
- Risk and opportunity management: SASB standards help companies identify and assess sustainability-related risks and opportunities, enabling them to make more informed strategic decisions.
- Operational efficiency improvements: Measuring and managing the carbon footprint and other ESG indicators allows companies to identify efficiency opportunities and reduce costs.

SASB’s relationship with other sustainability frameworks

SASB standards complement other sustainability reporting frameworks, such as:

- Global Reporting Initiative (GRI): Provides a broader sustainability reporting framework, while SASB focuses specifically on financially material ESG data for investors.
- Task Force on Climate-related Financial Disclosures (TCFD): Focuses on climate-related financial risks and opportunities.

By integrating SASB standards into their sustainability strategies, businesses can enhance ESG transparency, improve investor confidence, and drive long-term sustainability performance.