Not necessarily include every sustainability factor that is financially material to the company. Click on a highlighted cell at the sector-level and then on any highlighted cell at the industry-level to see suggested accounting metrics and additional information for each issue. In November 2018, SASB published these standards, providing a complete set of globally applicable industry-specific standards which identify the minimal set of financially material sustainability topics and their associated metrics for the typical company in an industry. So, many reporters are finding their goals best met by taking what works for them from the different frameworks — something the frameworks themselves, through the CRD, suggest is a good approach. Let us know what you think about the Implementation Primer! 'Sustainable Products' to Get a Boost from the EPA, CRD recently reported its initial BAP findings, State of Integrated and Sustainability Reporting 2018. how the main existing frameworks and standards are substantially aligned and complement each other; why GRI Standards are the most relevant for developing a separate sustainability report serving the needs of multiple stakeholders; and. These analyses will be useful for all stakeholders in communicating and prioritizing common goals. Her company operates in a range of extractive and transportation industries, so “when we pulled all the metrics together from five to six standards, it looked overwhelming at first.” She recommends a methodical approach: determining which industries are applicable, consolidating the metrics from those industries, then looking for overlap—including where related metrics are consistent or not. A company can begin this process by familiarizing itself with SASB terminology and the structure of SASB standards, which can be downloaded free of charge. As they implement SASB standards, companies are likely to bring together key internal functions that have traditionally used these (or other) conceptions of materiality, resulting in the potential for misunderstanding. Therefore, SASB’s sustainability topics are organized under five broad sustainability dimensions: In developing its standards, the SASB identified sustainability topics from a set of 26 broadly relevant sustainability issues organized under these five sustainability dimensions. Both financial reporting professionals and sustainability reporting professionals commonly use a concept they call “materiality” to help determine what information should—or should not—be disclosed in their public reporting. Ultimately, companies are responsible for determining which disclosure topics represent financially material risks and opportunities for their business and which associated metrics to disclose, taking the company’s business model, business strategy, and relevant legal requirements into account. Analyze portfolio exposure to specific sustainability risks and opportunities represented by each issue. SASB’s Materiality Map outlines how material ESG factors vary across 77 industries. SASB identifies financially material issues, which are the issues that are reasonably likely to impact the financial condition or operating performance of a company and therefore are most important to investors. マテリアリティマップの日本語版をご覧になるには、ここをクリックしてください To see a version of the Materiality Map in Japanese, please click here. For any SICS-related inquiries please email us at [email protected]. The TCFD is a widely supported effort, although early indications are that companies need guidance in integrating its recommendations. Which sustainability topics do investors most often ask the company to discuss or disclose? ✓ Do the SASB disclosure topics align with the key risks identified in the company’s existing risk factor disclosures to investors? SASB provides an Engagement Guide for investors to consider questions to discuss with companies regarding financially material issues as well as an Implementation Guide (update in early 2019) for companies which explains issues and approaches to consider when implementing SASB standards. Other uses, such as institutionalized investment research, product development, commercial activities, and publishing, reprinting or creating derivative works, requires a licensing agreement with The SASB Foundation. This is especially true for companies with hybrid or unique business models, or for companies in industries where business models vary significantly around the world. SASB’s Materiality Map ® identifies sustainability issues that are likely to affect the financial condition or operating performance of companies within an industry. Others’ operations are integrated horizontally across industries or vertically through the value chain straddling multiple industries. ✓ Which SASB disclosure topics from which industries appear to be relevant to the company’s long-term financial performance? SICS presents a new lens through which to assess companies and establish peer groups, by selectively reclassifying existing industries, surfacing new ones, and establishing new thematic sectors. To begin this process, a company may wish to: Broadly speaking, SASB uses the word “sustainability” to refer to corporate activities that maintain or enhance the ability of a company to create long-term shareholder value. The idea of the SASB Materiality Map ® was first introduced by the Initiative for Responsible Investment at Harvard University in the white paper From Transparency to Performance: Industry-Based Sustainability Reporting on Key Issues. After determining your company’s appropriate SICS industry or industries, the next step is to review the SASB disclosure topics for each industry and identify which disclosure topics are applicable to your company. Financial materiality: SASB’s approach to materiality is based on a traditional, financially oriented definition that is well-accepted globally: information that is reasonably likely to be important to investors in making investment decisions. CRD’s members have mapped their frameworks against the TCFD recommendations and are identifying opportunities for alignment of metrics where possible across all their reporting frameworks. Thus, for companies that are vertically or horizontally integrated across more than one industry, reporting with SASB standards may initially appear challenging. As a result, identifying what a given corporation should disclose requires thoughtful consideration of key issues within the context of the organization’s unique circumstances. ✓ What sustainability topics have been identified in previous materiality assessments the company may have undertaken? A company determines for itself which standard or standards are relevant to the company, which disclosure topics are financially material to its business, and which associated metrics to report, taking relevant legal requirements into account. To ensure investors understand the thought process behind your disclosures, SASB recommends that you clearly explain why you omitted or modified SASB topics or metrics in your disclosures. Issue is not likely to be material for any of the industries in sector, Not likely a material issue for companies in the industry
SASB “Materiality Maps”™ Ultimately, SASB creates unique “Materiality Maps”™ for dozens of industries. If you are unable to find your company or think the classification needs to be reviewed, please contact us using our classification request form. Likely a material issue for companies in the industry. “Focus on one area that is really important to the business” and go from there. SASB’s Materiality Map outlines how material ESG factors vary across 77 industries. However, not all of these stakeholders get their sustainability information directly from company reports. Sustainability Accounting Standards Board Copyright 2018 SASB | All Rights Reserved | Terms & Conditions | Privacy Policy | Contact, Understand SASB Terminology and Review SASB Standards, Determine Which Disclosure Topics are Applicable, Establishing a Common Understanding of the Term “Materiality”, Examples of Reporting Using Multiple Industry Standards, SASB in Action: Reporting Across Multiple Industries, ✓ What is your company’s primary industry classification in SASB’s, Sustainable Industry Classification System®, Kinder Morgan 2018 Environmental, Social, and Governance Report, Morgan Stanley 2018 Sustainability Report, Continue to Next Section: Assessing Your Readiness, Include topics that, for certain companies, may not be financially material; and/or. Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors and industries.
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