Sustainability Accounting Standards Board (SASB) introduced a new standard for comprehensive ESG reporting. Unlike climate-focused frameworks and directives, the SASB reporting standards go beyond environmental metrics.
SASB covers everything related to sustainability—including social and governance factors that are overlooked in other frameworks or reporting recommendations.
From data privacy in financial services to resource management in manufacturing, SASB equips organizations with industry-specific guidelines so they can report on the issues that matter the most to them.
Let’s explore how start with SASB reporting.
What is the Sustainability Accounting Standards Board (SASB)?
The Sustainability Accounting Standards Board (SASB) is an organization that created a standardized model for companies to disclose material sustainability information to stakeholders.
Founded in 2011, SASB wants to change the ESG space through a model that can analyze how environmental, social, and governance factors impact a company’s financial performance and long-term value alike.
SASB standards: How do they work?
The SASB standards guide companies on how sustainability issues can impact their bottom line. The standard established by the Sustainability Accounting Standards Board is different from climate-focused frameworks.
Lindsay Hampson, FSA Credential Holder and President at ThisRock Inc. observes that SASB’s approach is comprehensive, covering all areas of Environmental, Social, and Governance considerations for diverse sectors:
“Let’s take the Task Force on Climate-Related Financial Disclosures (TCFD) as an example. While the TCFD focuses specifically on climate risk disclosure, SASB covers a broader range of sustainability topics, going beyond climate and carbon issues.”
These standards exceed the environmental risks sphere to address issues such as customer privacy, employee safety, resource management, and ethical governance practices—all depending on your industry.
Lindsay also highlights how the data behind SASB is both quantitative and qualitative, providing clear, practical benchmarks that companies can use to disclose their sustainability performance transparently and consistently:
“The Sustainability Accounting Standards Board standard’s only focus is on material issues. Specifically, the data and metrics used are both qualitative and quantitative so organizations can cover everything that matters in their industry. For example, in certain industries, monitoring water consumption can lead to cost savings while also aiding the environment and improving the baseline for resource use.”
By managing material sustainability factors, companies can optimize resource use, reduce costs, and potentially enhance their appeal to sustainability-focused investors.
This said, the biggest benefit of using SASB over other standards such as the EDCI remains its ability to allow global companies to run a complete assessment of where they are standing when it comes to environmental, social, and governance factors efforts.
Who needs to follow the SASB reporting?
You’re not mandated to comply with SASB reporting but the standard is becoming more popular across diverse sectors thanks to its ability to offer a comprehensive ESG report for sustainability-focused investors.
Hence, SASB reporting is a nice-to-have for any company that wants to improve transparency. Publicly traded companies can use SASB industry standards to meet investor demand for transparent ESG disclosures.
SASB ESG also applies to 77 industries across 11 sectors:
How to implement the SASB standard?
Implementing the SASB framework involves a step-by-step plan to identify, collect, and report on the sustainability topics that impact your company the most in your industry.
Lindsay Hampson emphasizes that SASB standards have become widely adopted globally because of their industry-specific focus, allowing companies to address relevant ESG issues that impact financial performance.
The very first thing she recommends is understanding how the standard works before all else:
“Companies should first understand the SASB standards. I’ve seen them become popular all over the world. There are 77 industries they cover so, with my clients, I always figure out what industry they’re in first as this shows what ESG factors are most material to their operations.
Different industries have unique sustainability priorities. For instance, trucking companies will need to focus on emissions and fuel efficiency. Meanwhile, manufacturing companies will want to prioritize waste management or resource use, and data security might be more relevant for financial services.”
Tip: Use the SASB materiality map to compare standards and find the right disclosure topics for your industry.
The SASB Standards are now maintained by the International Sustainability Standards Board (ISSB) — SASB merged into the Value Reporting Foundation in 2021, which was consolidated into the IFRS Foundation in 2022. Far from fading, the standards are baked into the world’s leading sustainability disclosure framework: IFRS S1 points companies to them for identifying disclosure topics, ISSB-based standards are becoming mandatory in more than 35 jurisdictions, and the ISSB has been actively updating them since 2025.
The SASB was designed to avoid a one-size-fits-all approach. Other frameworks fail to achieve this. The SASB model focuses on factors that truly impact a company’s value and risk profile.
Where SASB could go wrong
The SASB model comes with its fair share of inefficiencies:
- SASB standards are tailored to 77 industries, requiring complex topics, metrics, and data to be evaluated for each individually. This can mean companies may struggle to align their efforts with the standards effectively when they’re caught in-between multiple sectors.
- SASB standards mean you need to start collecting data and implementing an ESG data management plan. The process is resource-intensive and might be challenging if you lack the resources or tools to handle it.
- Like with other models, the SASB’s guidelines are constantly updated. So, you have to keep up with the latest changes to comply.
- Some investors are not yet familiar with what the SASB standards imply. They might come with their own distinct requirements or require some extra trust building before they rely on your SASB reports.
To address these challenges, consider integrating SASB with other financial and climate frameworks, especially as the ISSB works to unify standards globally.
For example, integrating SASB with the Carbon Disclosure Project (CDP) brings a bit more to your sustainability reporting thanks to the latter’s comprehensive environmental disclosures.
Let’s say your company is in the mining sector and uses SASB standards to report on greenhouse gas emissions intensity. You can then turn to the CDP to add more insights on water security and deforestation efforts. The result? No gaps in your ESG reporting.
Before wrapping up, remember that no matter which standard you choose, the process will always be iterative. You can’t (and shouldn’t avoid) having to constantly review and tweak your data collection and management practices over time.
The way you apply the SASB standards to your own business ultimately depends on how your company and operations evolve. And who knows? Maybe in time you might just get more familiar with the SASB and find new ways to use it to save money and improve your climate-related efforts.
Ready to simplify your SASB reporting?
Try Tracera, our all-in-one platform that makes ESG data collection, analysis, and reporting effortless. With Tracera, you can easily navigate industry-specific SASB sustainability standards, track material issues, and create transparent reports