No. US2015-39
December 4, 2015
SASB publishes its Implementation Guide for
Companies
What happened?
At a glance
The SASB has released an
implementation guide to
help companies seeking
to use SASB Standards in
preparing their Form 10K or Form 20-F
disclosures.
The Sustainability Accounting Standards Board (SASB) has released its Implementation
Guide for Companies (the “Guide”), a reference document for companies who are in the
process of integrating the use of Sustainability Accounting Standards into their existing
corporate reporting, including their Form 10-K or Form 20-F disclosure processes.
The Guide outlines SASB’s recommended approach to considering SASB Standards in
five-steps:
1)
Materiality Assessment: Select topics for implementation
2)
Disclosure Analysis & Benchmarking: Assess readiness and align gaps
3)
Performance Evaluation & Benchmarking: Identify strengths, weakness,
opportunities and threats
4)
Implementation Considerations: Integrate into existing business processes
5)
Disclosure Considerations: Develop narrative for MD&A
It also describes SASB’s proposed five-factor test for evaluating the materiality of the
sustainability topics included in the Standards:
•
Direct Financial Impacts & Risk
•
Legal, Regulatory & Policy Drivers
•
Industry Norms & Competitive Drivers
•
Stakeholder Concerns & Social Trends
•
Opportunities for Innovation
About SASB
SASB is a US-based, independent non-profit organization whose goal is to develop and
disseminate industry-specific standards to help companies disclose decision-useful nonfinancial information to stakeholders. SASB standards are designed for the voluntary
disclosure of material sustainability information and metrics included in SEC filings,
such as Form 10-K. As such, companies may use SASB standards as part of their existing
disclosure controls and procedures when evaluating known trends and uncertainties. In
addition, a company might consider the SASB standards when providing voluntary
disclosure in sustainability reports or other disclosure vehicles.
Beyond disclosure, SASB standards might also help companies identify potential
enhancements to corporate strategy and supporting initiatives (e.g., increasing the use of
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In brief
1
environmentally preferred materials). To date, SASB has developed provisional
standards for 79 industries in 10 sectors after considering the input of industry working
groups comprised of over 2,800 professionals from publicly traded companies and
investment firms.
Why is this important?
The impact of megatrends, such as population growth, food scarcity, and climate change,
and issues such as health and safety, diversity, and data security are driving demand for
the inclusion of an increasing amount of non-financial information in corporate
reporting. The SASB aims to assist companies in this endeavor by establishing
frameworks that they can apply to enhance disclosure effectiveness.
The new Guide builds on SASB’s existing guidance by providing practical advice to
professionals responsible for corporate reporting.
Beyond SEC disclosure, the Guide also provides guidance for improving overall reporting
by considering the consistency and quality of disclosures across reporting channels.
What's next?
The Guide is part of SASB's shift in focus from developing provisional standards to
supporting their use. After issuing its final standards early next year, SASB will turn its
attention more fully to stakeholder education and awareness.
Questions?
Authored by:
PwC clients who have questions about this In
brief should contact their engagement partner.
Engagement teams who have questions should
contact Sara DeSmith (973-236-4084), Beth
Paul (973-236-7270), or Gregory Johnson (973236-7365).
Sara DeSmith
Partner
Sustainable Business Solutions
Phone: 1-973-236-4084
Email: sara.desmith@pwc.com
Donald Reed
Managing Director
Sustainable Business Solutions
Phone: 1-781-424-0669
Email: donald.j.reed@pwc.com
Brigham McNaughton
Director
Sustainable Business Solutions
Phone: 1-229-296-5971
Email: brigham.l.mcnaughton@pwc.com