ISSB to enhance an initial set of SASB Standards

The International Sustainability Standards Board (ISSB) is further enhancing the SASB Standards as part of its new two year work plan.

Companies applying IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information are required to consider the SASB Standards to identify their sustainability-related risks and opportunities and provide appropriate disclosures for topics beyond climate.

The ISSB has now set out its strategy and phased approach for enhancing the SASB Standards to deliver timely updates so that companies applying the SASB Standards are meeting the information needs of investors.

The ISSB has identified an initial set of industries to prioritise in its work to enhance the SASB Standards and expects to consult on the enhancements through publication of exposure drafts in the first half of 2025. Research indicates the industries identified are important to investors. The industries are also likely to be particularly relevant to the ISSB’s ongoing research work on disclosures about biodiversity, ecosystems and ecosystem services, and human capital.

The first phase of enhancements will focus on the eight SASB Standards in the Extractives & Minerals Processing sector and on the Electric Utilities & Power Generators SASB Standard in the Infrastructure sector.

Subject to the capacity of both the ISSB and its stakeholders, enhancements will also be put forward in this first phase of work for three SASB Standards in the Food & Beverage sector: Agricultural Products; Meat, Poultry & Dairy; and Processed Foods.

As part of this work the ISSB will also consider proposing targeted amendments to other SASB Standards to maintain consistent measurement of common topics across industries (so for example, if an amendment is proposed to a metric in the initial set of industries and that metric is included in other SASB Standards, consideration will be given to updating that metric in other SASB Standards to achieve consistency) .

Although the ISSB is considering enhancements to the SASB Standards, companies should not delay applying these Standards for the first time as part of their application of IFRS S1. The SASB Standards—the only established suite of industry standards for sustainability disclosure globally—are an important component of the ISSB’s global baseline of disclosures being adopted worldwide. The SASB Standards already provide a proportionate approach for companies to deliver decision-useful information to investors and the ISSB made targeted amendments to the SASB Standards in 2023 to ensure they are suitable for international application.

Consistent with all of its work in its new work plan, the ISSB will consider interoperability with GRI Standards and European Sustainability Reporting Standards when developing enhancements to the SASB Standards. Interoperability is necessary when companies must, or choose, to apply ISSB Standards alongside reporting requirements that are focused on meeting broader stakeholder information needs to secure a cost-effective and efficient disclosure system.

Over the coming months, the ISSB will continue to conduct market research to develop priorities for enhancements to the SASB Standards beyond this initial set, including recommendations for any enhancements to the Sustainable Industry Classification System.

For further details about why this initial set of SASB Standards were identified, including their importance to investors, stakeholder feedback, the related work of GRI and EFRAG, and analysis of current disclosures read the July ISSB board paper.

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