The Sustainability Accounting Standards Board (SASB)
The Sustainability Accounting Standards Board (SASB)
The mission of SASB is to provide a comprehensive set of industry-specific sustainability accounting standards that enable businesses to identify, manage, and communicate financially material sustainability information to investors. These standards are designed to be industry-specific, with each standard tailored to the unique sustainability risks and opportunities of a particular industry.
SASB standards cover a wide range of sustainability issues, including environmental, social, and governance (ESG) topics. The standards are organized into 11 sectors, which include industries such as healthcare, financials, transportation, and energy. Within each sector, there are specific topics and metrics that companies are expected to disclose in their financial filings.
SASB standards are voluntary and are intended to complement existing financial accounting standards. The standards are designed to be flexible and adaptable, allowing companies to report on the sustainability issues that are most material to their business. SASB standards are also designed to be auditable, so that investors can have confidence in the accuracy and completeness of the information that is being reported.
SASB has gained significant traction in recent years, with more than 1,800 companies using its standards to report sustainability information to investors. In addition, SASB has been recognized by organizations such as the Task Force on Climate-related Financial Disclosures (TCFD) and the Global Reporting Initiative (GRI) as a leading organization in the field of sustainability reporting.
Summary, SASB is an important organization that is working to promote transparency and accountability in sustainability reporting. By providing standardized sustainability accounting standards, SASB is helping to ensure that investors have access to reliable and comparable sustainability information, which can help them make informed investment decisions.
list of sectors and their respective industries:
1. Consumer Goods
· Apparel, Accessories & Luxury Goods
· Homebuilding & Furnishings
· Household & Personal Products
· Packaged Foods & Meats
· Personal Care & Cosmetics
· Restaurants & Food Services
· Toys & Juvenile Products
2. Extractives & Minerals Processing
· Aluminum
· Coal
· Copper
· Diamond & Gemstone
· Gold & Silver
· Iron & Steel
· Mining
3. Financials
· Asset Management & Custody Banks
· Consumer Finance
· Diversified Financials
· Insurance
· Mortgage Finance
· Regional Banks
· Securities Broker-Dealers
4. Food & Beverage
· Agricultural Products
· Breweries
· Distillers & Vintners
· Soft Drinks
· Packaged Foods & Meats
· Restaurants & Food Services
· Tobacco
5. Health Care
· Biotechnology
· Health Care Delivery
· Health Care Distributors
· Health Care Equipment & Supplies
· Health Care Facilities
· Health Care Services
6. Infrastructure
· Airports
· Electric Utilities
· Gas Utilities
· Highways & Railtracks
· Integrated Utilities
· Multi-Utilities
· Water Utilities
7. Renewable Resources & Alternative Energy
· Alternative Fuels
· Geothermal
· Hydroelectric
· Solar
· Wind
· Energy Storage & Management
8. Resource Transformation
· Chemicals
· Containers & Packaging
· Metals & Mining
· Pulp & Paper
· Steel
9. Services
· Commercial Printing
· Consulting & Professional Services
· Employment Services
· Environmental Services
· Information Services & Data
· Waste Management & Environmental Remediation
· Wholesale & Distribution
10. Technology & Communications
· Electronic Equipment, Instruments & Components
· Hardware, Storage & Peripherals
· Internet Content & Information
· IT Services
· Networking Equipment
· Software & Programming
11. Transportation
· Aerospace & Defense
· Airlines
· Delivery Services
· Marine Transportation
· Railroads
· Trucking
· Air Freight & Logistics
· Couriers & Messengers
· Ground Freight & Logistics
An overview of the sustainability topics covered by SASB standards for each sector:
Consumer Goods
The Consumer Goods sector includes companies that produce goods for personal or household use. The sector includes seven industries: Apparel, Accessories & Luxury Goods, Homebuilding & Furnishings, Household & Personal Products, Packaged Foods & Meats, Personal Care & Cosmetics, Restaurants & Food Services, and Toys & Juvenile Products. Here are the sustainability topics covered by SASB standards for the Consumer Goods sector:
1. Environmental and social impacts of production
· Sustainable sourcing of raw materials
· Water management and conservation
· Energy management and greenhouse gas emissions
· Waste management and disposal
· Pollution prevention and control
· Biodiversity and habitat conservation
2. Product safety and quality
· Product safety and quality assurance
· Labeling and transparency
· Consumer privacy and data security
· Product recalls and liability
3. Supply chain management
· Responsible sourcing of raw materials
· Labor rights and fair working conditions
· Human rights and social impacts
· Health and safety management
· Anti-corruption and ethics
· Supplier engagement and transparency
For each of the seven industries within the Consumer Goods sector, SASB provides additional industry-specific sustainability topics that companies should consider in their sustainability reporting. For example, the Apparel, Accessories & Luxury Goods industry may have additional topics related to labor practices, working conditions, and social impacts in the supply chain. The Household & Personal Products industry may have additional topics related to product formulation and transparency.
Summary, the Consumer Goods sector is focused on ensuring sustainable and responsible production of goods, ensuring product safety and quality, and promoting responsible supply chain management. By reporting on these sustainability topics, companies in the Consumer Goods sector can demonstrate their commitment to environmental and social responsibility, while also mitigating risks and identifying opportunities for improvement.
Extractives & Minerals Processing sector
The Extractives & Minerals Processing sector includes companies that are involved in the extraction and processing of natural resources, including mining, oil and gas drilling, and metal smelting. The sector includes eight industries: Coal Operations, Diamond & Gemstone Mining, Diversified Metals & Mining, Gold Mining, Iron & Steel Producers, Nonferrous Metals, Oil & Gas - Exploration & Production, and Oil & Gas - Midstream. Here are the sustainability topics covered by SASB standards for the Extractives & Minerals Processing sector:
1. Resource depletion and waste management
· Resource reserves and depletion rates
· Environmental impacts of resource extraction
· Waste management and disposal
2. Climate change and carbon management
· Greenhouse gas emissions and reductions
· Energy use and efficiency
· Adaptation to climate change risks
3. Human rights and labor practices
· Labor rights and working conditions
· Community impacts and relations
· Indigenous rights and cultural heritage
· Conflict minerals and responsible sourcing
4. Community impacts and relations
· Community health and safety
· Land use and land rights
· Infrastructure development and impacts
· Socioeconomic development and benefits
5. Health and safety
· Occupational health and safety management
· Emergency response planning
· Contractor safety and management
Each industry within the Extractives & Minerals Processing sector may have additional industry-specific sustainability topics that companies should consider in their sustainability reporting. For example, the Gold Mining industry may have additional topics related to cyanide use and tailings management, while the Oil & Gas - Exploration & Production industry may have additional topics related to hydraulic fracturing and water management.
Summary, the Extractives & Minerals Processing sector is focused on ensuring responsible resource extraction and processing, mitigating environmental impacts, promoting human rights and labor practices, and engaging with communities. By reporting on these sustainability topics, companies in the sector can demonstrate their commitment to environmental and social responsibility, while also mitigating risks and identifying opportunities for improvement.
Financials sector
The Financials sector includes companies that are involved in financial services, including banking, insurance, and investment management. The sector includes seven industries: Asset Management & Custody Banks, Consumer Finance, Diversified Financials, Insurance, Mortgage Finance, Regional Banks, and Securities Exchanges. Here are the sustainability topics covered by SASB standards for the Financials sector:
1. Financial stability and governance
· Financial soundness and risk management
· Governance structure and board composition
· Ethics and business conduct
2. Customer privacy and data security
· Data privacy and security policies
· Information security and cyber risk management
3. Access to financial products and services
· Financial inclusion and accessibility
· Responsible lending and consumer protection
· Financial education and literacy
4. Climate change and carbon management
· Climate-related risks and opportunities
· Greenhouse gas emissions and reductions
· Energy use and efficiency
5. Labor practices and supply chain management
· Labor practices and employee relations
· Supplier engagement and management
· Human rights and social impacts in the supply chain
Each industry within the Financials sector may have additional industry-specific sustainability topics that companies should consider in their sustainability reporting. For example, the Asset Management & Custody Banks industry may have additional topics related to responsible investment practices and stewardship, while the Insurance industry may have additional topics related to climate change adaptation and resiliency.
Summary, the Financials sector is focused on ensuring financial stability and governance, protecting customer privacy and data security, promoting access to financial products and services, and managing social and environmental risks. By reporting on these sustainability topics, companies in the sector can demonstrate their commitment to environmental and social responsibility, while also mitigating risks and identifying opportunities for improvement.
Food & Beverage sector
The Food & Beverage sector includes companies that are involved in the production, processing, and distribution of food and beverage products. The sector includes eight industries: Agricultural Products, Animal Health & Nutrition, Brewing, Distilling & Wine, Confectionery, Dairy Products, Packaged Foods & Meats, Restaurants, and Soft Drinks. Here are the sustainability topics covered by SASB standards for the Food & Beverage sector:
1. Food safety and quality
· Food safety management and testing
· Quality control and assurance
2. Supply chain management
· Supplier engagement and management
· Traceability and responsible sourcing
· Human rights and social impacts in the supply chain
3. Labor practices and working conditions
· Labor practices and employee relations
· Health and safety management
· Diversity and inclusion
4. Water management
· Water use and efficiency
· Water quality and impacts on ecosystems
5. Climate change and carbon management
· Greenhouse gas emissions and reductions
· Energy use and efficiency
· Adaptation to climate change risks
6. Packaging and waste management
· Packaging material sourcing and recyclability
· Waste management and disposal
· Food waste reduction and management
Each industry within the Food & Beverage sector may have additional industry-specific sustainability topics that companies should consider in their sustainability reporting. For example, the Agricultural Products industry may have additional topics related to soil health and biodiversity conservation, while the Brewing, Distilling & Wine industry may have additional topics related to responsible alcohol consumption and marketing.
Summary, the Food & Beverage sector is focused on ensuring food safety and quality, managing social and environmental risks in the supply chain, promoting labor practices and working conditions, and managing environmental impacts such as water use and waste management. By reporting on these sustainability topics, companies in the sector can demonstrate their commitment to environmental and social responsibility, while also mitigating risks and identifying opportunities for improvement.
Health Care sector
The Health Care sector includes companies that are involved in the provision of healthcare products and services, including pharmaceuticals, medical devices, hospitals, and health insurers. The sector includes six industries: Biotechnology, Health Care Delivery, Health Care Distributors, Health Care Equipment & Supplies, Health Care Providers & Services, and Pharmaceuticals. Here are the sustainability topics covered by SASB standards for the Health Care sector:
1. Product safety and quality
· Product safety management and testing
· Quality control and assurance
2. Supply chain management
· Supplier engagement and management
· Traceability and responsible sourcing
· Human rights and social impacts in the supply chain
3. Research and development
· Clinical trial transparency and ethics
· Innovation and pipeline management
· Drug affordability and access
4. Patient health and safety
· Patient safety management
· Health outcome measurement and reporting
· Access to care and affordability
5. Climate change and carbon management
· Greenhouse gas emissions and reductions
· Energy use and efficiency
· Climate change adaptation
6. Labor practices and working conditions
· Labor practices and employee relations
· Health and safety management
· Diversity and inclusion
Each industry within the Health Care sector may have additional industry-specific sustainability topics that companies should consider in their sustainability reporting. For example, the Biotechnology industry may have additional topics related to genetic privacy and ethical considerations, while the Health Care Providers & Services industry may have additional topics related to patient privacy and data security.
Summary, the Health Care sector is focused on ensuring product safety and quality, managing social and environmental risks in the supply chain, promoting research and development of new healthcare products and services, and managing patient health and safety. By reporting on these sustainability topics, companies in the sector can demonstrate their commitment to environmental and social responsibility, while also mitigating risks and identifying opportunities for improvement.
Infrastructure sector
The Infrastructure sector includes companies that provide essential services to communities, including transportation, utilities, and social infrastructure such as schools and hospitals. The sector includes eight industries: Airport Services, Commercial Services & Supplies, Construction Materials, Construction & Engineering, Electric Utilities, Gas Utilities, Multi-Utilities, and Water Utilities. Here are the sustainability topics covered by SASB standards for the Infrastructure sector:
1. Asset management
· Asset management and maintenance
· Infrastructure resiliency and risk management
· Safety and reliability
2. Environmental management
· Emissions and pollutants
· Resource conservation and efficiency
· Environmental impacts on ecosystems and communities
3. Customer relations and social impacts
· Customer engagement and satisfaction
· Social impacts of infrastructure development and operation
· Accessibility and affordability
4. Supply chain management
· Supplier engagement and management
· Traceability and responsible sourcing
· Human rights and social impacts in the supply chain
5. Labor practices and working conditions
· Labor practices and employee relations
· Health and safety management
· Diversity and inclusion
6. Climate change and carbon management
· Greenhouse gas emissions and reductions
· Energy use and efficiency
· Adaptation to climate change risks
Each industry within the Infrastructure sector may have additional industry-specific sustainability topics that companies should consider in their sustainability reporting. For example, the Airport Services industry may have additional topics related to noise pollution and air quality, while the Water Utilities industry may have additional topics related to water quality and conservation.
Summary, the Infrastructure sector is focused on ensuring asset safety and reliability, managing social and environmental risks in the supply chain, promoting customer satisfaction and social impacts, and managing environmental impacts such as resource conservation and greenhouse gas emissions. By reporting on these sustainability topics, companies in the sector can demonstrate their commitment to environmental and social responsibility, while also mitigating risks and identifying opportunities for improvement.
Renewable Resources & Alternative Energy sector
The Renewable Resources & Alternative Energy sector includes companies involved in the production and distribution of renewable energy, such as wind and solar power, as well as companies that provide alternative energy solutions, such as hydrogen fuel cells and biofuels. The sector includes six industries: Alternative Fuels, Biomass & Biofuels, Electric Power & Utilities, Renewable Energy Equipment & Services, Solar Energy, and Wind Energy. Here are the sustainability topics covered by SASB standards for the Renewable Resources & Alternative Energy sector:
1. Resource efficiency and environmental management
· Resource conservation and efficiency
· Emissions and pollutants
· Environmental impacts on ecosystems and communities
2. Supply chain management
· Supplier engagement and management
· Traceability and responsible sourcing
· Human rights and social impacts in the supply chain
3. Labor practices and working conditions
· Labor practices and employee relations
· Health and safety management
· Diversity and inclusion
4. Climate change and carbon management
· Greenhouse gas emissions and reductions
· Energy use and efficiency
· Adaptation to climate change risks
5. Innovation and technology development
· Research and development of new renewable energy solutions
· Commercialization and scalability of new technologies
· Intellectual property management
6. Product safety and quality
· Product safety management and testing
· Quality control and assurance
· Product performance and reliability
Each industry within the Renewable Resources & Alternative Energy sector may have additional industry-specific sustainability topics that companies should consider in their sustainability reporting. For example, the Biomass & Biofuels industry may have additional topics related to land use and deforestation, while the Solar Energy industry may have additional topics related to recycling and disposal of solar panels.
Summary, the Renewable Resources & Alternative Energy sector is focused on promoting resource efficiency and environmental sustainability, developing innovative new technologies, and promoting product safety and quality. By reporting on these sustainability topics, companies in the sector can demonstrate their commitment to environmental and social responsibility, while also mitigating risks and identifying opportunities for improvement.
Resource Transformation sector
The Resource Transformation sector includes companies involved in the extraction and processing of natural resources, such as metals, minerals, and chemicals. The sector includes five industries: Chemicals, Forest Products, Metals & Mining, Paper & Packaging, and Containers & Packaging. Here are the sustainability topics covered by SASB standards for the Resource Transformation sector:
1. Environmental management
· Resource conservation and efficiency
· Emissions and pollutants
· Environmental impacts on ecosystems and communities
2. Supply chain management
· Supplier engagement and management
· Traceability and responsible sourcing
· Human rights and social impacts in the supply chain
3. Labor practices and working conditions
· Labor practices and employee relations
· Health and safety management
· Diversity and inclusion
4. Climate change and carbon management
· Greenhouse gas emissions and reductions
· Energy use and efficiency
· Adaptation to climate change risks
5. Product safety and quality
· Product safety management and testing
· Quality control and assurance
· Product performance and reliability
Each industry within the Resource Transformation sector may have additional industry-specific sustainability topics that companies should consider in their sustainability reporting. For example, the Metals & Mining industry may have additional topics related to waste management and mine closure, while the Paper & Packaging industry may have additional topics related to sustainable forestry and certification.
Summary, the Resource Transformation sector is focused on promoting environmental sustainability and responsible sourcing, ensuring safe and healthy working conditions, and promoting product safety and quality. By reporting on these sustainability topics, companies in the sector can demonstrate their commitment to environmental and social responsibility, while also mitigating risks and identifying opportunities for improvement.
Services sector
The Services sector includes companies that provide a wide range of services to individuals and businesses, such as consulting, education, healthcare, and hospitality. The sector includes seven industries: Commercial Services & Supplies, Education Services, Health Care Delivery, Hotels & Tourism, Human Capital Management, Professional Services, and Real Estate. Here are the sustainability topics covered by SASB standards for the Services sector:
1. Environmental management
· Resource conservation and efficiency
· Emissions and pollutants
· Environmental impacts on ecosystems and communities
2. Supply chain management
· Supplier engagement and management
· Traceability and responsible sourcing
· Human rights and social impacts in the supply chain
3. Labor practices and working conditions
· Labor practices and employee relations
· Health and safety management
· Diversity and inclusion
4. Customer welfare
· Product safety and quality
· Privacy and data security
· Responsible marketing and advertising
5. Social and community capital
· Philanthropy and community investment
· Social and community impact assessments
· Access to healthcare and education
6. Human capital development and management
· Employee training and development
· Talent management and retention
· Employee engagement and satisfaction
7. Corporate governance
· Board oversight and structure
· Executive compensation and incentives
· Ethics and compliance
Each industry within the Services sector may have additional industry-specific sustainability topics that companies should consider in their sustainability reporting. For example, the Health Care Delivery industry may have additional topics related to patient safety and quality of care, while the Hotels & Tourism industry may have additional topics related to waste management and energy efficiency.
Summary, the Services sector is focused on promoting environmental sustainability, ensuring safe and healthy working conditions, promoting customer welfare and community development, and responsible corporate governance. By reporting on these sustainability topics, companies in the sector can demonstrate their commitment to environmental and social responsibility, while also mitigating risks and identifying opportunities for improvement.
Technology & Communications sector
The Technology & Communications sector includes companies that produce hardware and software products, as well as those that provide telecommunications services. The sector includes six industries: Hardware & Equipment, Internet Media & Services, IT Services, Semiconductors, Software, and Telecommunications. Here are the sustainability topics covered by SASB standards for the Technology & Communications sector:
1. Environmental management
· Resource conservation and efficiency
· Emissions and pollutants
· Environmental impacts on ecosystems and communities
2. Supply chain management
· Supplier engagement and management
· Traceability and responsible sourcing
· Human rights and social impacts in the supply chain
3. Labor practices and working conditions
· Labor practices and employee relations
· Health and safety management
· Diversity and inclusion
4. Data privacy and security
· Data privacy and protection
· Cybersecurity risks and management
· Responsible data use and management
5. Intellectual property
· Intellectual property protection and management
· Licensing and royalty payments
· Patents and copyrights
6. Innovation management
· Research and development investment and management
· Innovation strategy and governance
· Intellectual property and technology transfer
Each industry within the Technology & Communications sector may have additional industry-specific sustainability topics that companies should consider in their sustainability reporting. For example, the Semiconductors industry may have additional topics related to responsible chemical management, while the Telecommunications industry may have additional topics related to network reliability and availability.
Summary, the Technology & Communications sector is focused on promoting environmental sustainability, ensuring safe and healthy working conditions, protecting data privacy and security, and promoting innovation and intellectual property management. By reporting on these sustainability topics, companies in the sector can demonstrate their commitment to environmental and social responsibility, while also mitigating risks and identifying opportunities for improvement.
Transportation sector
The Transportation sector includes companies that provide transportation services and equipment, such as airlines, railways, shipping companies, and vehicle manufacturers. The sector includes nine industries: Air Freight & Logistics, Airlines, Automobiles, Marine, Railroads, Road & Rail, Trucking, Distributors & Integrated Logistics, and Transportation Infrastructure. Here are the sustainability topics covered by SASB standards for the Transportation sector:
1. Environmental management
· Fuel efficiency and emissions reduction
· Alternative fuels and renewable energy
· Environmental impacts on ecosystems and communities
2. Supply chain management
· Supplier engagement and management
· Traceability and responsible sourcing
· Human rights and social impacts in the supply chain
3. Labor practices and working conditions
· Labor practices and employee relations
· Health and safety management
· Diversity and inclusion
4. Customer welfare
· Passenger safety and experience
· Product safety and quality
· Responsible marketing and advertising
5. Social and community capital
· Philanthropy and community investment
· Social and community impact assessments
· Access to transportation and mobility
6. Human capital development and management
· Employee training and development
· Talent management and retention
· Employee engagement and satisfaction
7. Corporate governance
· Board oversight and structure
· Executive compensation and incentives
· Ethics and compliance
8. Risk management
· Operational risk management
· Financial risk management
· Safety risk management
9. Infrastructure development and maintenance
· Infrastructure investment and management
· Infrastructure safety and maintenance
· Infrastructure impacts on ecosystems and communities
Each industry within the Transportation sector may have additional industry-specific sustainability topics that companies should consider in their sustainability reporting. For example, the Marine industry may have additional topics related to ocean pollution and sustainable fishing practices, while the Automobiles industry may have additional topics related to vehicle safety and fuel efficiency.
Summary, the Transportation sector is focused on promoting environmental sustainability, ensuring safe and healthy working conditions, promoting customer welfare and community development, and responsible corporate governance. By reporting on these sustainability topics, companies in the sector can demonstrate their commitment to environmental and social responsibility, while also mitigating risks and identifying opportunities for improvement.
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