The SASB Framework (which, like the <IR Framework>, is governed by the Value Reporting Foundation), is designed for companies to communicate how sustainability issues impact the long-term value of the enterprise.  These standards, first published in 2018, can be integrated with other reporting frameworks and may “be used by companies as a practical tool for implementing the principles-based framework recommended by the Task Force for Climate-related Financial Disclosures (TCFD),” and also “enable robust implementation of the Integrated Reporting <IR> Framework . . . .”  Many companies report using both the SASB and GRI standards and the two organizations have published a guide on how to do so.

The SASB Standards “identify the subset of environmental, social, and governance issues most relevant to financial performance,” for 77 different industries and are “designed to help companies disclose financially-material sustainability information to investors.” The standards focus on five broad areas of reporting:  (1) the environment, (2) social capital, (3) human capital, (4) business model and innovation, and (5) leadership and governance.  Each of these areas is then comprised of more specific topics:

• The Environment, including, e.g.:

o GHG emissions
o Energy Management
o Water & Wastewater Management 

• Social Capital, including, e.g.:

o Human Rights & Community Relations
o Customer Privacy
o Access & Affordability

• Human Capital, including, e.g.:

o Labor Practices
o Employee Health & Safety
o Employee Engagement, Diversity & Inclusion

•  Business Model and Innovation, including, e.g.:

o Business Model Resilience
o Supply Chain Management
o Materials Sourcing & Efficiency

•  Leadership and Governance, including, e.g.:

o Business Ethics
o Management of the Legal & Regulatory Environment
o Systemic Risk Management

The SASB Standards are specific to each industry – so an auto parts company may report on one set of issues, while a health care delivery company would report on a different set of topics.  The VRF website allows users to download SASB Standards individually for each of the nearly 80 industries covered.  For each industry, the SASB Standards will include:

• Disclosure topics:  “A minimum set of industry-specific disclosure topics reasonably likely to constitute material information, and a brief description of how management or mismanagement of each topic may affect value creation”;

• Accounting Metrics:  “A set of quantitative and/or qualitative accounting metrics intended to measure performance on each topic”;

• Technical Protocols:  “Each accounting metric is accompanied by a technical protocol that provides guidance on definitions, scope, implementation, compilation, and presentation, all of which are intended to constitute suitable criteria for third-party assurance”; and

•  Activity Metrics:  “A set of metrics that quantify the scale of a company’s business and are intended for use in conjunction with accounting metrics to normalize data and facilitate comparison.”