The IFRS Foundation’s International Sustainability Standards Board (ISSB) has announced the release of new exposure drafts aimed at amending its sector-focused Sustainability Accounting Standards Board (SASB) sustainability reporting standards. Established in 2011, SASB’s mission was to create industry-specific ESG disclosure standards, enabling investors to assess the materiality of sustainability information and compare companies globally. In 2022, SASB was integrated into the ISSB, and its standards now offer industry-based guidance for the ISSB’s sustainability and climate reporting standards, IFRS S1 and IFRS S2.
Covering 77 industries, the SASB standards provide disclosure guidance on sustainability-related risks and opportunities. The ISSB’s plans to enhance these standards were initially outlined in its 2024–2026 work plan. The new exposure drafts include a comprehensive review of nine priority industries, such as oil and gas, metals and mining, construction materials, coal operations, and the Processed Foods SASB Standard from the Food & Beverage sector. They also propose alignment in metrics for 41 industries on topics like Water Management and Workforce Health & Safety, and updates to industry-based guidance on implementing IFRS S2.
The ISSB states that these proposals offer the first chance for IFRS Foundation stakeholders to provide input on the cost-effectiveness and decision-usefulness of the SASB standards. The exposure drafts are open for comment until 30 November. The development process involved consultations with investors, preparers, subject matter experts, and organisations like the Global Reporting Initiative (GRI), EFRAG, and the Taskforce on Nature-related Financial Disclosures (TNFD), focusing on improved alignment and international applicability.
The ISSB intends to finalise these enhancements by 2026. It also plans to publish drafts for three additional SASB standards, including Electric Utilities & Power Generators, and two in the Food & Beverage sector later this year, while considering other industries for future enhancements.
Sue Lloyd, ISSB Vice-Chair, remarked that the SASB standards are widely used voluntarily and serve as crucial industry-based guidance for ISSB standards users. This review aligns SASB standards more closely with ISSB standards, offering stakeholders a significant opportunity to influence SASB content. Access the exposure drafts and consultation [here](https://www.ifrs.org/projects/work-plan/enhancing-the-sasb-standards/).
