ISSB and SASB Integration
The ISSB acquired SASB (Sustainability Accounting Standards Board) in 2022, integrating SASB's 77 industry-specific standards into the IFRS sustainability disclosure framework. IFRS S1 requires companies to consider SASB metrics when identifying relevant sustainability disclosures. Here is how they work together.
The ISSB acquired SASB (Sustainability Accounting Standards Board) in 2022, integrating SASB's 77 industry-specific standards into the IFRS sustainability disclosure framework. SASB developed 77 industry-specific sustainability accounting standards covering 11 sectors and 77 industries — from Oil & Gas Exploration to Software & IT Services to Restaurants.
What SASB standards are and how they work
SASB developed 77 industry-specific sustainability accounting standards covering 11 sectors and 77 industries — from Oil & Gas Exploration to Software & IT Services to Restaurants. Each standard identifies the sustainability topics most likely to be financially material for companies in that industry and defines specific metrics for disclosure.
SASB standards are structured around five sustainability dimensions: Environment; Social Capital; Human Capital; Business Model & Innovation; Leadership & Governance. For each material topic, SASB defines accounting metrics (quantitative and qualitative) with specific units of measurement, scope definitions, and calculation guidance.
Example — SASB Software & IT Services standard: identifies data privacy and freedom of expression, data security, employee recruitment and retention, and environmental footprint of hardware infrastructure as likely material topics. For data security, it requires disclosure of the number of data breaches and the percentage involving personally identifiable information.
Example — SASB Metals & Mining standard: identifies GHG emissions, air quality, energy management, water management, waste management, biodiversity, and community relations as likely material topics — with specific quantitative metrics for each.
How IFRS S1 and S2 use SASB metrics
IFRS S1 requires entities to consider industry-based metrics — SASB is explicitly cited as a source of industry-specific requirements. Paragraph 54 of IFRS S1 states that entities shall consider the applicability of SASB standards when determining their disclosure requirements.
For IFRS S2 specifically: the standard includes a cross-industry climate metric requirement (Scope 1, 2, 3 GHG emissions; transition risk exposure; physical risk exposure; climate opportunities; capital deployment; and internal carbon price). Beyond these cross-industry metrics, entities are expected to use SASB's industry-specific climate metrics for their sector.
This means: an energy company applying IFRS S2 should disclose the SASB Electric Utilities & Power Generators climate metrics; a bank should disclose the SASB Commercial Banks climate metrics; a food company should disclose the SASB Processed Foods climate metrics.
The 'consider' language in IFRS S1 creates some ambiguity — SASB metrics are not unambiguously mandatory under IFRS S1/S2 in all cases. However, regulators in ISSB-adopting jurisdictions (UK FCA, Australian ASIC) are interpreting SASB as de facto required for companies in sectors with applicable SASB standards.
SASB and CSRD — the overlap and gaps
SASB metrics are not a requirement under CSRD/ESRS — ESRS does not reference SASB. However, SASB industry metrics overlap significantly with ESRS topical standard metrics for companies in relevant sectors.
For an EU company reporting under CSRD and voluntarily disclosing SASB: collect ESRS topical metrics first, then map to SASB. Most ESRS E1 climate metrics satisfy SASB climate metrics for your sector. ESRS S1 workforce metrics satisfy most SASB human capital metrics. ESRS E2 pollution metrics satisfy SASB air quality and waste metrics for industrial sectors.
Gaps: SASB sometimes requires sector-specific metrics that have no ESRS equivalent — for example, SASB Insurance requires disclosure of net premiums written related to energy efficiency and low-carbon technologies, which has no direct ESRS equivalent.
For dual reporters (CSRD + ISSB): the SASB metrics are the primary additional effort beyond ESRS when adding ISSB compliance. Identify your industry's SASB standard, check which metrics are already satisfied by ESRS disclosure, and collect data only for the genuine gaps.
Frequently asked questions
Which SASB standard applies to our company?
SASB assigns companies to industries using the SICS (Sustainable Industry Classification System) — different from GICS or NACE. The SASB website provides a classification tool. For conglomerates operating in multiple SASB industries, apply the standard for each significant business segment separately.
Are SASB standards still being updated?
The ISSB is maintaining existing SASB standards but has indicated it will not develop new standalone SASB standards. Instead, SASB metrics will be integrated into future IFRS sustainability standards as they are developed for specific topics. Existing SASB standards remain valid and applicable under IFRS S1/S2.
Do ESG rating agencies use SASB metrics in their ratings?
Yes — MSCI ESG Ratings and Sustainalytics both use SASB-aligned metrics heavily in their industry-specific analysis. SASB disclosure improves ESG rating data quality significantly for sectors where SASB standards are well-developed. Companies that disclose SASB metrics typically receive better data coverage scores from ESG data providers.