Staff paper
Agenda reference: 5Sustainability Standards AdvisoryForum meeting
DateMarch 2024

Topic

Enhancements to the SASB Standards

Contacts

Greg Waters (greg.waters@ifrs.org)
Sam Wallace (sam.wallace@ifrs.org)

This paper has been prepared for discussion at a public meeting of the Sustainability Standards Advisory Forum(SSAF). This paper does not represent the views of the International Sustainability Standards Board (ISSB) or
any individual ISSB member. Any comments in the paper do not purport to set out what would be an acceptableor unacceptable application of IFRS® Sustainability Disclosure Standards. The ISSB’s technical decisions aremade in public and are reported in the ISSB Update.

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Purpose of this session
Purpose of this session
To provide SSAF members with initial staff views on potential enhancements to the SASBStandards

Question for SSAF members
Do SSAF members have any feedback on what the ISSB should prioritise in pursuing SASB
enhancements to support the implementation of IFRS S1 and IFRS S2?

Background4

Industry-based approach
During the ISSB’s consultation on IFRS S1and S2, we heard a few key messages reindustry specificity:• Sustainability-related risks andopportunities that are most likely to affectfinancial performance vary by industry• Investors' operations are oftenaligned with industries (sector coverage,portfolio allocation, etc.)• Focusing on relevant topics and metrics
is more efficient and cost-effective formost preparers (reporting more tailored totheir business activities)

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ISSB Standards recognise
the value of industryspecific disclosures• IFRS S1 requires industry-specificdisclosures• IFRS S2 requires industry-specific climaterelated disclosures supported byaccompanying industry-based guidance6To support these industry-specific requirements, the ISSB
Standards reference and build on the SASB Standards

SASB Standards have been used by over

3,300 preparers across 83 jurisdictions
since 2021

To access full list of reporters, please visit: https://www.sasb.org/company-use/sasb-reporters/

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ISSB will enhance and maintain the SASB Standards
Completed projects in 2023

Looking ahead

Enhanced the international applicability of theSASB Standards:•Considering opportunities for SASB Standards
enhancements in the ISSB’s next work plan•

In June 2023, the ISSB updated the climaterelated content in the SASB Standards inconnection with issuance of IFRS S2•

Producing educational materials regarding
SASB Standards to support implementation ofIFRS S1•In December 2023, the ISSB updated theremaining content to enhance international
applicability without significantly altering
industries, topics or metrics•

Updating the SASB Standards XBRLTaxonomy to support digital reportingInitial staff thinking:Future enhancements to theISSB’s industry-based materials

9Three sources of input for future projects
Not mutually exclusive or in a specific order of priority…
1Projects the ISSB inherited from the SASB Standards Board

2

Priority industries/topics identified through stakeholder consultations

3Enhancing or facilitating interoperability with other standards and frameworks

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Inherited SASB Standards projects• The ISSB has committed to advancing projects being pursued by the SASBStandards Board at the time of the VRF-IFRS consolidation in August 2022
• Three projects were at a relatively advanced stage:•••

Alternative Products in Food & Beverage sector
Content Governance in Internet Media industry
Single-use Plastics in the Chemicals industry• Several other projects were in the pipeline, including a human capital research
project and enhancements to the Marine Transportation and Electric Utilities
industries

11Priorities arising from stakeholder feedback• The ISSB has received feedback regarding specific enhancements to industrybased materials in connection with recent consultations:••••

The Request for Information on the ISSB’s agenda priorities
Input on the Methodology Exposure Draft connected to the international applicabilityof SASB Standards project
Feedback on draft S1 and S2, including Appendix B of draft S2

Staff also has a database of feedback received on the SASB Standards dating back tocodification in late 2018
• Market use of the SASB Standards has been a powerful tool for surfacing potentialenhancements

12Enhancing interoperability
Interoperability with other standards andframeworks (such as ESRS and GRI) will be
an important consideration in enhancing theSASB Standards

Initial staff thinking:Future enhancements to theISSB’s industry-based materials

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Ask for the SSAF: solicit feedback fromyour stakeholders
What should the ISSB prioritise in pursuing SASB
enhancements to support the implementation of IFRS S1and S2?

Next steps

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Next steps for industry-based work
• Feedback from this SSAF engagement can further inform future work and becommunicated at the June and October meetings this year
• Staff is developing recommendations to the ISSB regarding the activities tobe included on its workplan, to be published in H2 2024. SASB Standards
enhancements are part of the ISSB’s “committed work”.
• Potential research projects launched by the ISSB on topics like human capitalor nature will consider how to build on the SASB Standards

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