The reason for SASB’s quick ascent is the organization’s unique approach to standard setting. SASB has chosen to focus on the following items in order to differentiate itself:
- Materiality: In order for SASB’s standards to fit within the framework of U.S. mandatory public filings, SASB has chosen to use the U.S. Supreme Court definition of materiality when identifying sustainability issues. This decision means that SASB standards are made specifically for companies to provide information to investors in order to make the capital markets more efficient. Following this definition also means that SASB standards identify sustainability issues that are likely to affect the financial condition or operating performance of companies in an industry.
- Decision-Useful Information: Every SASB Metric has been selected with the intention of providing investors decision-useful information.
- Cost Effective: When possible, SASB identifies metrics that are already being used by specific industries in order to make the standards as cost effective as possible for corporate issuers.
- Industry-Specific: SASB develops unique standards for 77 industries, producing a far more granular and focused set of standards than any other sustainability standards-setter.
- Evidence-Based: Every sustainability topic included in SASB’s Standard is anchored in evidence based research that links each topic to financial value drivers.
- Market-Informed: SASB used an inclusive standard setting process, receiving input from thousands of industry subject matter experts representing investors, companies, and third party intermediaries.