ISSB updates to SASB Standards

The ISSB has committed to maintain, enhance, and evolve the SASB Standards and encourages preparers and investors to continue to use them. The ISSB has confirmed that industry-specific disclosures are required as part of its standards and, in the absence of specific IFRS Sustainability Disclosure Standards, companies must consider the SASB Standards to identify sustainability-related risks, opportunities and related metrics.

The ISSB has begun an initial phase of enhancements to the SASB Standards, addressing international applicability. The following timeline describes the milestones that will be important for preparers, licensees, investors and jurisdictional authorities.

Milestones

June 2023

Updates to climate-related SASB Standards content

• Context
  • IFRS S2 includes industry-based guidance derived from climate-related SASB Standards content.
  • With issuance of IFRS S2, ISSB released updated SASB Standards to align them with S2.
• Details
  • New topics and metrics covering financed emissions in 3 industries: Asset Management & Custody Activities, Commercial Banks, and Insurance
  • Revisions to 12 metrics to enhance international applicability
  • Removal of 6 metrics that are not internationally applicable
• Related content
  • Download the Staff Paper prepared for May ISSB meeting listing metrics in question.

August 2023

Close of public comment period for international applicability Methodology Exposure Draft

• Context
  • When applying IFRS S1, preparers are required to refer to and consider applicability of SASB Standards in identifying and disclosing information regarding sustainability-related risks and opportunities.
  • ISSB is enhancing international applicability of the SASB Standards to ensure companies can use them to prepare disclosure under S1, regardless of location.
  • From May to August 2023, the ISSB held a public consultation on its proposed approach to enhancing the international applicability of SASB metrics covering all topics beyond climate (climate-related metrics were updated alongside publication of IFRS S2 in June).
• Details
  • Proposed methodology involves removal and replacement of references to specific jurisdictions without significantly altering industries, topics, or intent of current metrics.
  • Consultation gave stakeholders opportunity to voice their views on ISSB’s proposed methodology and provide input on possible future enhancements to SASB Standards.
• Related content
  • Visit the IFRS Foundation page about the Methodology Exposure Draft consultation.
  • Download a PDF of the Exposure Draft: Methodology for Enhancing the International Applicability of SASB Standards and SASB Standards Taxonomy Updates.
  • View summary of feedback from public comment period presented to the ISSB on 14 September.

October 2023 (planned)

Public “fatal flaw” review of updates to non-climate SASB Standards content

• Context
  • ISSB will analyse results of public comment period for Methodology Exposure Draft, adjust methodology as appropriate and develop updates to SASB Standards.
• Details
  • Prior to issuing updated SASB Standards, ISSB will hold 30-day “fatal flaw” review period for stakeholder comments on updates and input on ISSB’s application of the methodology to specific industries and metrics.
• Related content
  • Subscribe to ISSB news alerts and stay tuned for further communication about related content and resources.

December 2023 (planned)

Updates to non-climate SASB Standards content

• Context
  • After public review of proposed revisions and incorporation of stakeholder feedback, ISSB will issue updated SASB Standards.
• Details
  • ISSB estimates revision of about 200 SASB metrics to enhance international applicability.
  • Issuance of these updates marks ISSB’s completion of initial phase of updates to the SASB Standards to improve the ease of application of the SASB Standards and IFRS S1.
• Related content
  • Subscribe to ISSB news alerts and stay tuned for further communication about related content and resources.