The SEC requires disclosure on anything that an INVESTOR would see as a material impact relative to the performance of a company.
Accounting for a Sustainable Future
The Sustainability Accounting Standards Board
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.
In today’s world, businesses face a unique set of challenges, from climate change and resource constraints to urbanization and technological innovation. However, corporate accounting has been slow to adapt. As the language of business, accounting should capture meaningful information on the sustainability factors most relevant to a company’s management and its investors.
SASB recently issued a reference document for issuers who are in the process of integrating SASB standards into their existing 10-K or 20-F disclosure processes.
The SASB Implementation Guide for Companies helps issuers achieve three objectives:
- Identify the industry-specific sustainability topics most likely to be material to an investor
- Understand the current state of disclosure and performance on those topics
- Enhance existing reporting processes to more effectively disclose material information on sustainability topics
Tools & Resources
The SASB Implementation Guide for Companies provides structure and key considerations for companies seeking to implement sustainability accounting standards within their existing business functions and processes.
The Guide helps companies:
- Select sustainability topics
- Assess current state of disclosure and management
- Embed SASB standards into financial reporting and management processes
- Support disclosure and management with internal control
- Present information for disclosure