Using the SASB Standards for IFRS
IFRS S1 does not mandate the direct use of the standards of the Sustainability Accounting Standards Board (SASB). However, at a minimum, organizations are required to assess their relevance as part of the reporting process. The SASB standards provide industry-specific guidance on sustainability topics and metrics, offering organizations a practical framework for addressing sustainability-related disclosures. By promoting the adoption of SASB Standards, the ISSB aims to streamline the application of IFRS S1 and lower compliance costs.
The industry-specific focus of SASB standards helps you to identify relevant disclosure topics and metrics that are tailored to your operations, fostering consistent and transparent reporting. In addition to the climate-related risks covered under IFRS S2, SASB standards expand the scope of sustainability disclosures to include areas such as human capital and natural resource management. This broader perspective ensures a comprehensive assessment of material risks and opportunities. Also, SASB’s well-defined metrics enhance comparability across industries, facilitating simpler reporting, and strengthening the decision-usefulness of disclosures that are aligned with IFRS S1.
- Identify relevant industry standards. Evaluate which SASB standards correspond to your business operations sector to pinpoint applicable disclosure topics and metrics.
- Select appropriate disclosure topics and identify relevant metrics. Use SASB disclosure topics and metrics to measure and disclose sustainability performance in a way that ensures quantitative, decision-useful reporting.
- Develop comprehensive disclosures. Apply SASB’s technical protocols to craft industry-specific disclosures that provide stakeholders with transparent, comparable insights into sustainability-related risks and opportunities. This approach helps you build robust sustainability reports, aligning with global frameworks and delivering meaningful insights to stakeholders.