The Investor Advisory Group of the Sustainability Accounting Standards Board has called on companies to use SASB Standards in disclosures to investors.

The IAG, with 55 members and a total of $41 trillion AUM, says it seeks to send a clear market signal that leading international investors are calling for SASB-based disclosure as a foundation for corporate sustainability disclosure to investors.

Among sustainability reporting standards and frameworks, SASB Standards are tailored specifically to help companies communicate with investors. Because they are industry-specific, metric-driven, and focused on financial materiality, SASB Standards improve the comparability of ESG-related data and enable integration of ESG considerations into investment and stewardship decisions across global portfolios and asset classes.

“Amidst growing momentum this year, global investors agree that we need more standardized data on the ESG factors that impact enterprise value creation,” said Eivind Lorgen of Nordea Asset Management, North America and Chair of the IAG. “As expressed in our updated statement, the IAG wants companies around the world to use SASB Standards in order to improve the comparability and quality of ESG information we need as investors.”
“Within the broader landscape of sustainability disclosure, SASB Standards are specifically designed to meet investor needs,” says Ole Buhl, Vice President and Head of ESG at ATP and a member of the SASB IAG. “That’s why the IAG is asking companies to use the SASB Standards as a core part of their disclosure.”

A variety of sustainability standards and frameworks assist companies in communicating with wide-ranging stakeholders. SASB is involved in efforts to integrate ESG reporting standards and frameworks into a comprehensive, global system for sustainability reporting, most recently issuing a joint statement with CDP, CDSB, GRI, and IIRC outlining a shared vision. Within this system, SASB is gaining support as a helpful tool for investor-focused disclosure. Most recently, the UK Financial Reporting Council encouraged UK public interest entities to voluntarily report using the TCFD Recommendations and SASB Standards to meet the needs of investors.