The SASB Standards are a source of guidance for applying IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information. The SASB Standards help companies identify and disclose material information about sustainability-related risks and opportunities in the absence of specific IFRS Sustainability Disclosure Standards.
The SASB Standards identify the sustainability-related risks and opportunities most relevant to investor decision-making in 77 industries. The Standards were developed using a rigorous and transparent standard-setting process that included:
- evidence-based research;
- broad and balanced consultations with companies, investors and subject-matter experts; and
- oversight and approval from the independent SASB Standards Board.
In August 2022, the ISSB assumed responsibility for the SASB Standards when the Value Reporting Foundation (VRF), global nonprofit that previously maintained these Standards, merged with the IFRS Foundation. The ISSB is committed to maintaining and enhancing the SASB Standards and encourages their continued use.
In December 2023, the ISSB published amendments to enhance the international applicability of the SASB Standards.
Licensing
SASB Standards can be used free of charge for non-commercial purposes, such as preparing corporate disclosures. Any other use, including integration into products and services, requires a licence from the IFRS Foundation.
The SASB Standards XBRL Taxonomy
The VRF published the SASB Standards eXtensible Business Reporting Language (XBRL) taxonomy to enhance the quality and usefulness of disclosures required by SASB Standards by integrating the Standards with XBRL, the common language for digital business reporting.
The SASB Standards XBRL Taxonomy will be updated to reflect the December 2023 amendments to the SASB Standards.
Listed companies that produce annual financial reports in regions with XBRL mandates are likely to be familiar with XBRL. The SASB XBRL Taxonomy is:
- compatible with base taxonomies for financial accounting standards; and
- accessible to organisations seeking to adopt it for their sustainability reporting.
Many corporate reporting software providers and auditors already collect and report data in the XBRL format and are interested in reporting sustainability information in the same format.
