Sustainability Accounting Standards Board (SASB)
The Sustainability Accounting Standards Board (SASB) is an independent 501(c)3 non-profit. SASB’s mission is to develop and disseminate sustainability accounting standards that help public corporations disclose material, decision-useful information to investors. That mission is accomplished through a rigorous process that includes evidence-based research and broad, balanced stakeholder participation.
The Need for SASB
The U.S. financial accounting system, which requires transparent disclosure of material information to investors, plays a fundamental role in making our markets the most efficient, liquid, and resilient in the world. However, the construct for standardized financial reporting to investors was developed in a time when a company’s ability to create value was constrained largely by the ability to access financial capital.
We live in a different world now, one that has greater uncertainty, a broader range of risks and opportunities, and significant resource constraints beyond access to capital. A new, standardized language is needed to articulate the material, non-financial risks and opportunities facing companies today. These non-financial risks and opportunities that affect corporations’ ability to create long-term value are characterized as “sustainability” issues. Sustainability issues vary by industry because they are closely aligned with business models, the way companies compete, their use of resources, and their impact on society.
For this reason, SASB is immersed in understanding, interpreting, and measuring relevant sustainability issues at the industry level, in order that they can be measured, managed, and disclosed.