SASB Sustainability Reporting Standards Undergo Revision by ISSB, Focusing on Specific Industry Sectors
The International Sustainability Standards Board (ISSB), a body within the IFRS Foundation, has unveiled significant plans to modernize and harmonize industry-specific sustainability reporting standards. The proposed enhancements, part of the ISSB's 2024–2026 work plan, aim to improve the alignment and decision-usefulness of sustainability disclosures for investors worldwide.
Key proposed enhancements include a comprehensive review and update of nine priority industries, such as oil and gas, metals and mining, construction materials, and coal operations, as well as the Processed Foods industry from the Food & Beverage sector. Additionally, targeted amendments will be made across 41 additional industries, focusing on critical topics like Water Management and Workforce Health & Safety.
The updates will also align the SASB Standards with IFRS S2 (Climate-related Disclosures), ensuring close integration with global climate reporting requirements. The enhancements will emphasize climate, nature, and human capital metrics, including greenhouse gas emissions, energy management, labour practices, and water management, reflecting emerging investor priorities.
To gather global stakeholder input, the ISSB has released exposure drafts inviting comments on the proposed amendments. The consultation period remains open until November 30, and access to the exposure drafts can be found by clicking the provided link.
This is the first noteworthy opportunity for IFRS Foundation stakeholders to provide comprehensive input on the cost-effectiveness and decision-usefulness of the SASB standards. The ISSB has collaborated with major sustainability frameworks such as the Global Reporting Initiative (GRI), EFRAG, and the Taskforce on Nature-related Financial Disclosures (TNFD) during the development of the proposed enhanced SASB standards. The aim is to ensure global relevance and interoperability within the sustainability reporting ecosystem.
The ISSB plans to publish exposure drafts for three additional SASB standards, including Electric Utilities & Power Generators and two in the Food & Beverage sector, later this year. Sue Lloyd, ISSB Vice-Chair, stated that the comprehensive review for nine industries further aligns the language and concepts in the SASB Standards with the ISSB Standards. The ISSB aims to improve alignment and interoperability with other sustainability reporting standards and ensure international applicability.
The SASB standards, founded in 2011 with a mission to establish industry-specific ESG disclosure standards, cover 77 industries, providing industry-specific disclosure guidance on sustainability-related risks and opportunities. Lloyd also mentioned that this is the first comprehensive opportunity for ISSB stakeholders to weigh in on the content of the SASB Standards in the context of the ISSB Standards.
- The International Sustainability Standards Board (ISSB) has proposed to update and harmonize sustainability reporting standards across various industries, including oil-and-gas, metals and mining, and electric utilities & power generators.
- The ISSB's enhancement plans will focus on critical topics like greenhouse gas emissions, energy management, labour practices, and water management, to reflect emerging investor priorities.
- The ISSB is seeking global stakeholder input on the proposed amendments to the SASB Standards, with a consultation period open until November 30.
- The ISSB aims to improve alignment and interoperability with other sustainability reporting standards, such as the Global Reporting Initiative (GRI) and the Taskforce on Nature-related Financial Disclosures (TNFD), to ensure international applicability.
