Sustainability Accounting Standards Board (SASB)
Establishes industry-specific standards for corporate sustainability disclosure and performance.
Find a consultantWhat is it?
The Sustainability Accounting Standards Board (SASB) is an independent, nonprofit organization that develops and maintains industry-specific sustainability accounting standards. These standards are aimed at assisting businesses in disclosing essential sustainability information to investors.
SASB's standards are effectively designed to offer investors pertinent data that allows them to evaluate the sustainability risks and opportunities linked with their investments. SASB's methodology primarily focuses on financial materiality, which highlights the sustainability factors likely to impact a company's financial performance.
These standards are tailored to cater to 77 different industries, understanding that the pertinence of specific environmental, social, and governance (ESG) issues can significantly vary across sectors.
The SASB standards encompass a broad range of topics, including climate change, water usage, waste management, labor practices, and much more. By providing a common framework for reporting, SASB's objective is to enhance the comparability and usefulness of sustainability disclosures for investors and other stakeholders.
Beyond its standards, SASB interacts with companies, investors, and other stakeholders with the intention to promote a better understanding of sustainability issues. It also encourages the adoption of its reporting framework.
Who is it for?
The Sustainability Accounting Standards Board (SASB) is an organization that delivers an array of industry-specific sustainability accounting standards. These are designed to help public corporations disclose crucial sustainability data to investors. SASB's standards give priority to the financial significance of sustainability issues, with an intention to facilitate transparency in how corporations manage and report their environmental, social, and governance (ESG) performance.
SASB provides specific advantages to different stakeholders:
- Investors: SASB provides Investors with a framework, allowing them to evaluate the sustainability performance of their potential investments.
- Companies: SASB assists companies by helping them pinpoint and disclose sustainability data that may have an impact on their financial performance and shareholder value.
- Analysts and Rating Agencies: Analysts and Rating Agencies benefit from SASB as it offers a consistent set of standards to analyze and compare companies based on their sustainability practices.
- Regulators: By developing a consistent disclosure framework for sustainability-related data, SASB helps regulators.
By focusing on materiality, SASB aims to ensure that sustainability disclosures are relevant and beneficial to decision makers within the financial market.
When was it introduced?
The Sustainability Accounting Standards Board (SASB), established in 2011, developed a comprehensive framework that allows companies to reveal sustainability information to investors. It also made industry-specific standards for a variety of sectors. The commencement of the SASB Standards took place in 2018, with updates and improvements coming progressively based on feedback and alterations in the sustainability environment.
Most notably, in November 2020, SASB unveiled an updated version of the standards, embedding lessons captured from the preliminary implementation phase. By 2021, SASB merged with the International Integrated Reporting Council (IIRC) to create the Value Reporting Foundation. This merger marks a significant step towards further integration of sustainability reporting with financial reporting.
Why is it important?
The Sustainability Accounting Standards Board (SASB) has significant importance in a variety of areas:
Standardization
SASB provides a set of standards for companies to disclose sustainability information in a consistent manner. This helps to create a shared framework, allowing for investors and stakeholders to evaluate and compare the sustainability performance of different organizations.
Investor Relevance
SASB prioritizes those sustainability issues that are materially significant to investors. This means the information disclosed through SASB standards can influence investment decisions, steering capital towards more environmentally conscious businesses.
Transparency
By urging companies to reveal their sustainability practices and their impact, SASB promotes greater transparency. This transparency can result in increased trust among stakeholders, including investors, customers, and the public.
Integration into Financial Reporting
SASB standards are intended to be integrated into conventional financial reporting. This integration allows for a comprehensive view of a company's performance, which incorporates both standard financial metrics and sustainability metrics.
Sector-Specific Standards
Acknowledging that sustainability concerns can significantly differ across industries, SASB has created standards specifically tailored for different sectors. This specificity enables companies to provide more relevant and useful information.
Encouraging Best Practices
By setting a framework for sustainable practices, SASB encourages companies to adopt best practices and enhance their sustainability performance, potentially leading to long-term environmental and societal benefits.
Facilitating Communication
SASB standards facilitate improved communication between companies and their stakeholders regarding sustainability efforts. This enables more informed decision-making.
In summary, SASB plays a vital role in fostering sustainability reporting that is relevant, consistent, and transparent, offering benefits to investors, other stakeholders, and promoting a more sustainable economy overall.
What do organisations need to do?
Organizations can comply with the Sustainability Accounting Standards Board (SASB) standards by following these steps:
1. Understand the Standards
Familiarize yourself with SASB's framework and standards, which are tailored for different industries. Each industry has specific metrics that are deemed relevant for sustainability disclosures.
2. Conduct a Materiality Assessment
Identify which sustainability issues are material to your business operations and stakeholders. This assessment should take into account both financial performance and environmental/social impacts.
3. Integrate SASB Standards into Reporting
Align your existing sustainability reports or integrate SASB standards into your annual reports. Use the SASB metrics relevant to your industry to ensure comprehensive coverage of material sustainability issues.
4. Collect Data
Establish processes for collecting accurate and consistent data for the disclosures based on SASB standards. This may involve improving data management systems and ensuring collaboration across different departments within your organization.
5. Engage Stakeholders
Involve relevant stakeholders, including investors, to understand their information needs and expectations. Communicating with stakeholders can help prioritize which SASB metrics to report on.
6. Train Employees
Educate employees involved in sustainability reporting about SASB standards, including how to collect and report data effectively. This ensures a consistent approach across the organization.
7. Verify Data and Processes
Consider third-party verification of your reported data to enhance credibility. This could involve audits or assessments conducted by independent firms specializing in sustainability.
8. Benchmark Against Peers
Review sustainability reports of similar organizations within your industry to understand best practices and identify areas for improvement in your own reporting.
9. Continuously Improve
Monitor developments in sustainability practices and SASB standards, as they can evolve over time. Ensure your organization adapts and improves its reporting practices accordingly.
10. Report Transparently
When reporting your findings, be clear and transparent. Use the SASB framework to structure your reports, making it easier for stakeholders to understand your sustainability performance.
By following these steps, organizations can effectively comply with SASB standards and enhance their sustainability reporting efforts.
What are the benefits?
The Sustainability Accounting Standards Board (SASB) offers several benefits, particularly for businesses, investors, and stakeholders who have an interest in sustainability and financial performance. Here are some key advantages:
- Standardization: SASB provides a standard framework for companies to disclose sustainability information. This uniformity simplifies the comparison of performance across industries for investors and stakeholders.
- Relevance: The standards focus on the most significant sustainability issues in individual sectors. This approach ensures that reported information holds relevance for both investors and the specific industry.
- Transparency: The adoption of SASB standards improves transparency in a company's sustainability practices. This higher level of clarity helps build trust with investors, consumers, and other stakeholders.
- Investment Decisions: SASB disclosures enable investors to make more informed investment decisions. They can comprehensively assess the sustainability performance of companies, influencing long-term financial performance.
- Risk Management: SASB standards aid organizations in identifying and managing sustainability-related risks. This can lead to improved operational efficiency and long-term resilience.
- Competitive Advantage: Companies can gain a competitive edge by integrating SASB standards into their reporting process. This reflects leadership in sustainability and attracts investors focused on sustainability.
- Regulatory Compliance: With an increasing number of regulators and stock exchanges incorporating sustainability reporting requirements, alignment with SASB standards can keep companies ahead of regulatory demands.
- Stakeholder Engagement: Enhanced sustainability reporting can boost engagement with various stakeholders, including employees, community members, and customers. This helps to foster stronger relationships.
- Benchmarking: SASB standards make it possible for companies to measure their sustainability performance against their peers. This helps to identify areas for improvement and recognize the best practices.
- Holistic Approach: SASB encourages a comprehensive perspective on sustainability by incorporating environmental, social, and governance (ESG) factors into corporate decision-making and strategy.
In summary, SASB supports greater accountability and fosters a better understanding of sustainability performance in relation to financial results. This aids in the transition towards a more sustainable economy.
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Good communication, flexible schedule and delivered exactly what was agreed and on time. Would work with her again!
Tom helped us with calculating our carbon footprint outputs from 2019 to 2023. He managed everything end to end with minimal client direction. It was seamless and effortless. He's an excellent professional.
The support's been great from when we first started speaking, you wrote the brief for me and did all the sourcing. So that was fantastic. Communication has been great. The level of engagement has been brilliant.
Working with Leafr has been a pleasure from the beginning. Leafr has a wide network of talented individuals, and they have been able to seamlessly connect us with strong candidates for our various projects.
Leafr's marketplace boasts an extensive network of highly talented individuals. They have effortlessly connected us with great candidates. Leafr has become our go-to for skilled sustainability professionals.
Whenever you hire consultants you worry whether they'll be as motivated or skilled as your team. Every Leafr consultant has been so impressive. We spoke to several sustainability agencies and this has been far better value.
Our expert immediately became a seamless addition to our team. Her work showed a mastery of ESG and a strong understanding of the financial sector. We'd love the opportunity to work with her again.
Flexibility
We adapt to your needs, offering tailored solutions that evolve as your sustainability goals and challenges change.
Quality
We don’t compromise. We connect you with specialists who deliver exceptional work, ensuring every project meets the highest standards.
Value
We maximise impact while keeping costs low, ensuring you get exceptional results within your budget, with a clear focus on return on investment.
Commitment
Your mission becomes ours. We’re dedicated to supporting you from start to finish, no matter the complexity or duration.
Ownership
We take responsibility for our work, proactively managing projects and driving outcomes that align with your vision.
Flexibility
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Quality
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Value
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Commitment
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Ownership
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Our vetting process
Each applicant must pass our stringent vetting process before working with clients. Only those meeting our high standards are accepted. We test for behavioural competency, technical skills, sustainability experience, and culture fit.
In-depth skill review
Each consultant submits a written application along with case studies of their work. This ensures they have the specialised technical skills to tackle your sustainability challenges.
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Live screening
We interview each candidate for behavioural and technical skills, and test against our detailed sustainability skillset matrix. We also ask for references and testimonials.
Test projects & peer review
With the help of our experts, we review past projects to verify the consultant’s ability to deliver impactful sustainability outcomes.
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Frequently asked questions
Hiring a sustainability consultant can be a daunting process. Here we answer some of the common concerns we hear.
Will the consultant be available when I need them?
Leafr consultants are committed to your project�s success. We ensure they have the availability you need, and our support team is on hand to address any urgent requirements. Our consultants are trusted by top organisations because of their reliability and commitment.
How will you handle our sensitive or confidential information?
Confidentiality is a top priority at Leafr. All consultants sign strict non-disclosure agreements (NDAs) and are trained to handle sensitive information with the utmost care, ensuring your business data remains secure. This is part of why organisations worldwide trust our consultants.
What if the consultant pushes solutions that are too expensive to implement?
Leafr consultants focus on providing cost-effective, practical solutions. They work within your budget constraints and prioritise recommendations that offer the most value without unnecessary expenditure. We offer a risk-free period so you can evaluate their proposals without financial risk.
Will working with a consultant disrupt our current operations?
Our consultants are skilled at integrating smoothly into existing operations. They work with minimal disruption, focusing on enhancing your processes rather than interrupting them. Their experience with top organisations ensures a seamless fit into your team.
I'm worried the consultant might leave the project halfway through.
Continuity is ensured through our rigorous project management oversight. Leafr consultants are committed professionals, and we have contingency plans in place to guarantee that your project will be completed even if unforeseen circumstances arise. Our 100% project satisfaction rating is a testament to our reliability.
I'm worried about committing long-term just to see results.
Leafr offers flexible engagement options. Whether you need short-term assistance or long-term support, we tailor our services to match your desired commitment level. Our risk-free period allows you to explore these options without long-term obligations.
What happens if the consultant becomes unavailable or the project gets delayed?
We have a robust network of consultants, so if any unexpected issues arise, we can quickly provide an equally qualified replacement to keep your project on track. Leafr�s support team is always available to manage and mitigate any potential delays. We also offer a risk-free period to give you peace of mind.
Is the cost-benefit ratio of hiring a consultant really worth it?
Leafr consultants are chosen for their ability to deliver clear ROI. We ensure that the value they bring far outweighs the investment, with tailored solutions that directly impact your bottom line. Plus, our risk-free period allows you to assess the value without commitment.
Will the consultant communicate effectively with our team?
Effective communication is a cornerstone of our consultants� approach. We ensure clear, consistent communication throughout the project, fostering collaboration and alignment with your team. This commitment to communication is a key factor in our 100% project satisfaction rating.
Will my team need retraining after the consultant leaves?
Our consultants focus on knowledge transfer, equipping your team with the skills and understanding they need to sustain progress after the project concludes. This ensures that the improvements are lasting and your team remains confident moving forward.
Will the consultant stay updated with the latest sustainability trends and regulations?
Leafr consultants are experts in their fields, continuously updating their knowledge of the latest trends and regulations. We ensure they bring the most current insights to your project, supported by ongoing training and development opportunities.
I'm concerned about how to assess the consultant's performance effectively.
Leafr provides clear metrics and regular updates, allowing you to track the consultant�s progress and assess the impact of their work. We also encourage feedback to ensure expectations are met. Our 100% project satisfaction rating reflects our dedication to transparency and performance.
How soon will we see results from the consultant's work?
While sustainability initiatives often have long-term goals, our consultants focus on delivering quick wins and measurable progress early in the engagement, ensuring you see value from the outset. Our risk-free period allows you to experience these early results firsthand.
I'm worried the consultant might not fully commit if they have multiple clients.
Our consultants are dedicated to delivering results. Leafr carefully manages consultant workloads to ensure your project receives the attention and commitment it deserves. Our 100% project satisfaction rating is a testament to our consultants� focus and dedication.
What if the consultant doesn't understand my specific industry or business model?
At Leafr, we thoroughly vet our consultants to ensure they have deep expertise in various industries. We match you with specialists who have proven experience in your sector, ensuring they understand your unique challenges and goals. Our consultants have been trained and trusted by the best organisations worldwide.
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