SASB standard-setting process

As of August 2022, the International Sustainability Standards Board (ISSB) of the IFRS Foundation assumed responsibility for the SASB Standards. The 77 industry-specific SASB Standards play an important role in the first two IFRS Sustainability Disclosure Standards, IFRS S1 General Requirements for Sustainability-related Disclosures and IFRS S2 Climate-related Disclosures. A company applying IFRS S1 is required to refer to the SASB Standards in identifying sustainability-related risks and opportunities and associated disclosures; the SASB Standards also are the basis for the industry-based guidance included in IFRS S2.

The ISSB recognises that maintaining and enhancing the SASB Standards is essential to supporting implementation of IFRS S1 and IFRS S2 and to ensuring that the SASB Standards continue to be relevant and fit for use by regulators whose jurisdictions adopt IFRS Sustainability Disclosure Standards and by companies that use the Standards in disclosing sustainability-related financial information.

Accordingly, enhancing the SASB Standards is part of the ISSB’s 2024-2026 work plan. There will be a range of enhancements to ensure that these Standards remain relevant and decision-useful for investors.

A group of ISSB members—chaired by Jeff Hales, former Chair of the SASB Standards Board—has been established to assist the ISSB in enhancing the SASB Standards. The group develops exposure drafts of amendments to the SASB Standards and, after considering the stakeholder feedback, drafts of the final amendments. The ISSB as a full board will consider the recommendations of this group in ISSB meetings (which are public) and ratify the exposure drafts and, subsequently the final amendments prepared by the group.

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 technical staff conducted research, engaged with corporate professionals, investors and subject matter experts, and monitored existing, evolving and emerging sustainability issues. The staff 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 and direction from the SASB Standards Board. 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 SASB Standards Board’s due process involved a set of distinct but connected activities centred around three key decisions:

• Initiating a Standard-setting project
• Proposing a Standards update
• Issuing a Standards update

To follow the further development of the SASB Standards under the ISSB, visit the IFRS Foundation notifications dashboard to register for an account and sign up for email notifications.