SASB Standards

Per SASB / IFRS Sustainability Disclosure: (a) Assurance and Internal Control over Sustainability Disclosures + (b) Comparability and Restatement Policies + (c) Connectivity with Financial Statements + (d) maintain documentation supporting third-party assurance + (e) align with ISSB framework + IFRS S1/S2.

• SASB/IFRS S2 evidence for SASB-6

• industry metrics + assurance partial

Establish and document internal controls over sustainability information of similar rigor to financial reporting controls, and obtain external assurance where required or beneficial.

• ICFR style control matrix for ESG data
• Engagement letter from assurance provider
• Assurance report (limited or reasonable)
• Walkthrough and testing workpapers

• No formal internal controls over sustainability data
• Assurance limited to GHG only
• Reconciliations not retained

Disclose comparative information for prior periods, and disclose and explain any restatements of previously reported sustainability information.

• Restatement policy document
• Restated metric workbook with audit trail
• Disclosure narrative explaining restatements
• Approval log for restatements

• Restatements made without explanation
• Prior period figures not restated when methodology changes

Demonstrate connectivity between sustainability related financial disclosures and the general purpose financial statements, including consistent assumptions, estimates, and reporting boundary.

• Reporting boundary reconciliation
• Assumption consistency memo
• Cross reference index between sustainability and financial reports
• Reviewer sign off

• Different reporting entities used for sustainability and financial reporting
• Inconsistent discount rates or useful lives

Provide SASB disclosures in a manner that allows comparability over time and across peers, including a SASB index or appendix mapped to the reporting framework used.

• SASB index in annual or sustainability report
• Cross reference to TCFD and IFRS S2
• Restatement disclosures
• Peer benchmarking notes

• Index incomplete or out of date
• Restatements not flagged
• Year on year changes in scope unexplained

Per SASB / IFRS S2 Standards Business Model and Innovation dimension: report material sustainability factors including (a) Product Design and Lifecycle Management + (b) Business Model Resilience + (c) Supply Chain Management + (d) Materials Sourcing and Efficiency + (e) integrate with broader sustainability strategy + (f) maintain documentation supporting industry-specific SASB metrics + IFRS S2 disclosures.

• SASB/IFRS S2 evidence for SASB-1

• industry metrics + assurance partial

Disclose product design for sustainability, circular economy practices, and lifecycle environmental impact

• Product lifecycle inventory and assessment
• Supply chain ESG risk register
• Materials sourcing and efficiency metrics
• Climate physical risk impact study

• Lifecycle assessment narrow in scope
• Suppliers beyond tier 1 not assessed
• No quantitative materials efficiency targets
• Climate physical risk not quantified

Report on climate-related risks and opportunities, scenario analysis, and business model adaptation

• Product lifecycle inventory and assessment
• Supply chain ESG risk register
• Materials sourcing and efficiency metrics
• Climate physical risk impact study

• Lifecycle assessment narrow in scope
• Suppliers beyond tier 1 not assessed
• No quantitative materials efficiency targets
• Climate physical risk not quantified

Disclose supply chain sustainability metrics including supplier environmental and social performance

• Product lifecycle inventory and assessment
• Supply chain ESG risk register
• Materials sourcing and efficiency metrics
• Climate physical risk impact study

• Lifecycle assessment narrow in scope
• Suppliers beyond tier 1 not assessed
• No quantitative materials efficiency targets
• Climate physical risk not quantified

Management of risks associated with sourcing and efficiency of materials used in production processes.

• Product lifecycle inventory and assessment
• Supply chain ESG risk register
• Materials sourcing and efficiency metrics
• Climate physical risk impact study

• Lifecycle assessment narrow in scope
• Suppliers beyond tier 1 not assessed
• No quantitative materials efficiency targets
• Climate physical risk not quantified

Management of risks and opportunities associated with the direct physical impacts of climate change on operations and assets.

• Product lifecycle inventory and assessment
• Supply chain ESG risk register
• Materials sourcing and efficiency metrics
• Climate physical risk impact study

• Lifecycle assessment narrow in scope
• Suppliers beyond tier 1 not assessed
• No quantitative materials efficiency targets
• Climate physical risk not quantified

Identify and assess acute and chronic physical climate risks across owned assets, leased assets, and material parts of the value chain, including location specific hazard exposure.

• Physical risk assessment report
• Asset register with geographic coordinates
• Hazard exposure modelling output
• Insurance loss history aligned to climate hazards

• Asset register incomplete
• Only headquarters assessed
• Acute and chronic risks not separated

Identify and quantify transition risks arising from policy, legal, technology, market, and reputational drivers, including carbon pricing exposure and stranded asset risk.

• Transition risk register
• Carbon pricing exposure model
• Stranded asset analysis
• Policy and regulatory horizon scan
• Customer or product mix sensitivity analysis

• No internal carbon price applied
• Transition risk limited to direct operations
• Reputational risk not quantified

Use climate related scenario analysis commensurate with the entity's circumstances to assess resilience of strategy and business model, including at least one scenario aligned with the latest international agreement on climate change.

• Scenario analysis report
• Assumptions log including temperature pathway
• Sensitivity tables for revenue, cost, asset values
• Internal review and challenge documentation

• Only a single 1.5C or 2C scenario tested
• Assumptions undocumented
• No quantitative output

Measure and disclose absolute gross Scope 1 greenhouse gas emissions in metric tonnes of CO2 equivalent in accordance with the Greenhouse Gas Protocol Corporate Standard.

• Scope 1 GHG inventory workbook
• Activity data source documents (fuel invoices, refrigerant logs)
• Emission factors log with version dates
• Internal control walkthrough for GHG data

• Refrigerant or fugitive emissions omitted
• Outdated emission factors
• Organizational boundary not documented

Measure and disclose absolute gross Scope 2 greenhouse gas emissions using both location based and market based methods where appropriate.

• Scope 2 inventory workbook
• Utility bills and metered consumption logs
• REC or GO certificate registry extracts
• Residual mix and grid factor documentation

• Only location based method used
• Energy attribute certificates not retired or not verified
• Leased space estimates not justified

Measure and disclose absolute gross Scope 3 greenhouse gas emissions across the 15 GHG Protocol categories, identifying which categories are material and the methods used for estimation.

• Scope 3 screening assessment
• Category by category calculation workbooks
• Supplier specific data collection records
• Data quality scoring matrix

• Categories 1, 11, and 15 omitted without justification
• Heavy reliance on spend based factors
• No data quality scoring

Disclose the internal carbon price used in decision making and the current and anticipated financial effects of climate related risks and opportunities on the financial position, performance, and cash flows.

• Internal carbon pricing policy
• Capital appraisal templates showing carbon price applied
• Financial impact assessment memo
• Sensitivity analysis tied to financial statements

• Internal carbon price disclosed but not applied to investment decisions
• Financial impacts qualitative only

Identify and disclose climate related opportunities including resource efficiency, low emission products and services, access to new markets, and resilience building, with associated financial effects.

• Climate opportunity register
• Product or revenue mapping to low carbon categories
• Capital expenditure pipeline tagged for climate opportunities
• Market sizing memos

• Opportunities described qualitatively without revenue or cost figures
• No linkage to capital allocation

Per SASB Environment dimension: GHG emissions + air quality + energy + water + waste + ecological impacts. Align with IFRS S2 climate-related disclosures.

• SASB/IFRS S2 evidence for SASB-5

• industry metrics + assurance partial

Disclose the governance processes, controls, and procedures the entity uses to monitor, manage, and oversee sustainability and climate related risks and opportunities, in alignment with IFRS S1 paragraphs 26 to 31.

• Board charter referencing sustainability oversight
• Sustainability committee terms of reference
• Minutes of board or committee discussions of climate or sustainability risks
• Org chart showing ESG accountable executives
• Delegation of authority matrix for sustainability decisions

• No documented board level oversight of climate matters
• Sustainability roles spread across departments with no single accountable owner
• Minutes lack evidence of substantive sustainability discussion

Demonstrate how the governance body or bodies determine that appropriate skills and competencies are available or will be developed to oversee strategies designed to respond to sustainability related risks and opportunities.

• Board skills matrix including climate and ESG competencies
• Director education and training logs
• Sustainability briefings to the board
• External advisor engagement letters for ESG topics

• Skills matrix omits sustainability competencies
• No documented director training on climate science or ESG reporting

Disclose the governance processes, controls, and procedures used to monitor and manage sustainability related risks and opportunities, including board oversight and management responsibility.

• Board committee charter
• Management responsibility matrix
• Sustainability KPI dashboard
• Skills and competencies disclosure

• Board oversight asserted without evidence
• Competencies not disclosed
• Reporting line conflicts with risk function

Per SASB Human Capital dimension: report labor + employee health/safety + diversity + community. Maintain industry-specific SASB metrics including workforce composition + safety incident rates.

• SASB/IFRS S2 evidence for SASB-2

• industry metrics + assurance partial

Report on labor practices including fair wages, working conditions, and labor relations metrics

• Labor practices policy and grievance log
• Health and safety incident records (TRIR, LTIFR)
• Diversity and inclusion data
• Training and development records

• Contractor data excluded
• Pay equity not analysed
• Diversity metrics narrow
• Grievances not closed timely

Disclose occupational health and safety metrics including incident rates and prevention measures

• Labor practices policy and grievance log
• Health and safety incident records (TRIR, LTIFR)
• Diversity and inclusion data
• Training and development records

• Contractor data excluded
• Pay equity not analysed
• Diversity metrics narrow
• Grievances not closed timely

Report workforce diversity metrics and inclusion initiatives across management and employee levels

• Labor practices policy and grievance log
• Health and safety incident records (TRIR, LTIFR)
• Diversity and inclusion data
• Training and development records

• Contractor data excluded
• Pay equity not analysed
• Diversity metrics narrow
• Grievances not closed timely

Use SASB Standards as baseline for identifying sustainability-related risks and opportunities per IFRS S1

• IFRS S1 disclosure index and management approval
• IFRS S2 climate metrics and targets schedule
• Materiality assessment workpapers
• Scope 1, 2, 3 emissions inventory with assurance evidence

• Connectivity with financial statements not demonstrated
• Scope 3 categories incomplete
• Scenario analysis lacks quantitative inputs
• Industry specific SASB metrics not mapped to S1

Apply SASB industry-specific climate metrics for TCFD-aligned climate-related financial disclosures per IFRS S2

• IFRS S1 disclosure index and management approval
• IFRS S2 climate metrics and targets schedule
• Materiality assessment workpapers
• Scope 1, 2, 3 emissions inventory with assurance evidence

• Connectivity with financial statements not demonstrated
• Scope 3 categories incomplete
• Scenario analysis lacks quantitative inputs
• Industry specific SASB metrics not mapped to S1

Per SASB LG dimension: governance + ethics + competitive behavior + regulatory compliance + risk management + critical incident management.

• SASB/IFRS S2 evidence for SASB-3

• industry metrics + assurance partial

Report on anti-corruption, competitive behavior, and regulatory compliance metrics

• Code of business conduct
• Ethics training completion records
• Systemic risk register
• Critical incident management procedures

• Ethics training not annual
• Systemic risk not stress tested
• Incident criteria undefined
• Whistleblower follow-up incomplete

Disclose management of systemic risks including financial, technology, and geopolitical risks

• Code of business conduct
• Ethics training completion records
• Systemic risk register
• Critical incident management procedures

• Ethics training not annual
• Systemic risk not stress tested
• Incident criteria undefined
• Whistleblower follow-up incomplete

Report on management of critical incidents and enterprise risk management practices

• Code of business conduct
• Ethics training completion records
• Systemic risk register
• Critical incident management procedures

• Ethics training not annual
• Systemic risk not stress tested
• Incident criteria undefined
• Whistleblower follow-up incomplete

Company's ability to manage risks associated with incidents that may have wide-ranging health, environmental, and social impacts.

• Code of business conduct
• Ethics training completion records
• Systemic risk register
• Critical incident management procedures

• Ethics training not annual
• Systemic risk not stress tested
• Incident criteria undefined
• Whistleblower follow-up incomplete

Management of risks and contribution to or mitigation of systemic risks resulting from large-scale weakening or collapse of systems.

• Code of business conduct
• Ethics training completion records
• Systemic risk register
• Critical incident management procedures

• Ethics training not annual
• Systemic risk not stress tested
• Incident criteria undefined
• Whistleblower follow-up incomplete

Apply the relevant SASB industry standards to select and disclose industry specific metrics, or explain why a metric is not material or applicable to the entity.

• List of selected SASB metrics by industry standard
• Justification memo for excluded metrics
• Data collection SOPs per metric
• Source system extracts feeding metrics

• Industry standard not correctly mapped to NAICS codes
• Excluded metrics lack documented rationale
• Multiple operating segments not reported separately

Disclose activity metrics from the relevant SASB standards to give context to performance metrics and enable comparability across reporting periods.

• Activity metric workbook
• Reconciliation to audited financial statements
• Normalization methodology document
• Period over period variance analysis

• Activity metrics not reconciled to financial reporting
• Units of measure inconsistent across periods

Disclose any targets set to manage sustainability related risks and opportunities, including baseline year, scope, milestones, and progress against the target.

• Approved target documentation
• Baseline calculation memo
• Annual progress report against targets
• Internal dashboard or KPI scorecard

• Targets lack approved baseline
• No interim milestones
• Progress not independently reviewed

Disclose industry specific metrics and accompanying activity metrics from the applicable SASB standard, using prescribed units, scope, and calculation methodologies.

• Metric calculation worksheets
• Activity metric source data
• Unit reconciliation
• Variance to prior year

• Metric units customised
• Activity metrics omitted
• Restatement of prior period without explanation

Disclose gross global Scope 1 and Scope 2 greenhouse gas emissions following the GHG Protocol, with disaggregation as required by the applicable industry standard.

• GHG inventory by scope
• GHG Protocol consolidation approach
• Activity data sources
• Emission factor register

• Scope 2 market based and location based confusion
• Boundary errors after acquisitions or divestments
• Emission factors out of date

Where Scope 3 emissions categories are identified as material under SASB or IFRS S2, disclose category specific emissions with methodology, exclusions, and uncertainty quantification.

• Scope 3 screening across 15 categories
• Selected category calculations
• Data quality scoring
• Exclusion rationale

• Screening skipped, defaulting to one or two categories
• Data quality not disclosed
• Use of sold products excluded for downstream goods producers

Disclose total energy consumed, percentage grid electricity, percentage renewable, and where applicable energy intensity ratios using consistent boundaries and units.

• Energy ledger
• Utility bills sample
• Renewable energy attribute certificates
• Intensity calculation worksheet

• Renewable claims based on grid mix rather than instruments
• Self generation double counted
• Intensity denominator inconsistent

Where the industry standard requires, disclose total water withdrawn and consumed in regions of high or extremely high water stress, with source mapping and intensity.

• Site level water data
• Water stress overlay using WRI Aqueduct or equivalent
• Permits and licences
• Reduction targets

• Stress classification not applied
• Withdrawal and consumption confused
• Permits inventory missing

Disclose total waste generated, percentage hazardous, percentage recycled or recovered, and significant spills or releases in accordance with the applicable industry standard.

• Waste manifests
• Treatment classification per facility
• Spill register
• Material recovery contracts

• Hazardous waste classification per local law rather than Basel where required
• Spill register missing minor events
• Recycling claims without downstream evidence

For industries with data privacy and security disclosure topics, report on policies, data handled, requests by law enforcement, monetary losses from breaches, and users affected.

• Privacy policy and DPIA
• Law enforcement request log
• Breach register with monetary impact
• Affected user count methodology

• Monetary loss limited to direct costs ignoring legal and remediation
• Affected user count understated
• Privacy policy not updated for new processing

Where the industry standard requires, disclose total recordable incident rate, fatality rate, and near miss frequency rate for direct employees and where appropriate contractors.

• Incident register
• Hours worked records
• TRIR and fatality calculation worksheets
• Contractor inclusion methodology

• Contractors excluded inconsistently across years
• Near miss reporting culture weak
• Hours worked estimated rather than measured

Where required by the industry standard, disclose workforce composition by gender and other categories, percentages at management and senior levels, and engagement results.

• HRIS extract
• EEO style reporting
• Pay equity analysis
• Engagement survey results

• Reporting limited to country of headquarters
• Pay equity not adjusted for role grade
• Engagement results selectively reported

Disclose percentage of suppliers assessed against social or environmental criteria, audits conducted, non conformances identified, and remediation completed where the industry standard prescribes.

• Supplier code of conduct
• Audit programme
• Audit results dashboard
• Remediation closure evidence

• Self assessment treated as equivalent to audit
• Tier 2 visibility lacking
• Remediation closed without verification

Where applicable, disclose recalls, monetary losses associated with product safety incidents, and number of regulatory enforcement actions related to product quality and safety.

• Recall register
• Regulatory correspondence log
• Loss accounting tied to recall
• Root cause analyses

• Voluntary recalls excluded
• Losses limited to direct cost
• Regulatory actions not tracked centrally

Disclose monetary losses from legal proceedings related to bribery or corruption and describe management of legal and regulatory environment as prescribed by the industry standard.

• Litigation register
• ABAC programme documentation
• Training completion records
• Whistleblower report metrics

• Settlements without admission excluded
• Training not tracked by jurisdiction
• Whistleblower metrics not disaggregated

For financial sector standards, disclose measures and exposures relating to systemic risk including global systemically important institution status, recovery and resolution planning, and capital metrics.

• GSIB designation status
• Recovery and resolution plan summary
• Capital adequacy disclosures
• Stress test results

• Subsidiary level disclosures missing
• Stress test scope under disclosed
• Recovery plan triggers undefined

Per SASB SC dimension: human rights + community relations + customer privacy + data security + product quality + customer welfare + selling practices + product labeling.

• SASB/IFRS S2 evidence for SASB-4

• industry metrics + assurance partial

Disclose data security practices, data breach incidents, and customer privacy protection measures

• Privacy notice and consent registers
• Data security incident logs
• Product safety and quality records
• Community engagement records

• Consent retention inconsistent
• Breach notification timelines missed
• Quality issues not root-caused
• Accessibility considerations absent

Report on product/service access, affordability, and equity metrics relevant to the industry

• Privacy notice and consent registers
• Data security incident logs
• Product safety and quality records
• Community engagement records

• Consent retention inconsistent
• Breach notification timelines missed
• Quality issues not root-caused
• Accessibility considerations absent

Disclose product quality metrics, recalls, safety incidents, and customer welfare measures

• Privacy notice and consent registers
• Data security incident logs
• Product safety and quality records
• Community engagement records

• Consent retention inconsistent
• Breach notification timelines missed
• Quality issues not root-caused
• Accessibility considerations absent

Management of relationships with communities in which the company operates, including indigenous rights and community impacts.

• Privacy notice and consent registers
• Data security incident logs
• Product safety and quality records
• Community engagement records

• Consent retention inconsistent
• Breach notification timelines missed
• Quality issues not root-caused
• Accessibility considerations absent

Management of risks related to use of personally identifiable information (PII) and other customer/user data for secondary purposes.

• Privacy notice and consent registers
• Data security incident logs
• Product safety and quality records
• Community engagement records

• Consent retention inconsistent
• Breach notification timelines missed
• Quality issues not root-caused
• Accessibility considerations absent

Management of risks related to collection, retention, and use of sensitive, confidential, or proprietary customer/user data.

• Privacy notice and consent registers
• Data security incident logs
• Product safety and quality records
• Community engagement records

• Consent retention inconsistent
• Breach notification timelines missed
• Quality issues not root-caused
• Accessibility considerations absent

Ability to ensure broad access to products and services, particularly for underserved markets or populations.

• Privacy notice and consent registers
• Data security incident logs
• Product safety and quality records
• Community engagement records

• Consent retention inconsistent
• Breach notification timelines missed
• Quality issues not root-caused
• Accessibility considerations absent

Management of issues related to quality and safety of products, including impacts on customer health and safety.

• Privacy notice and consent registers
• Data security incident logs
• Product safety and quality records
• Community engagement records

• Consent retention inconsistent
• Breach notification timelines missed
• Quality issues not root-caused
• Accessibility considerations absent

Management of issues related to customer welfare beyond quality and safety, including responsible use and responsible marketing.

• Privacy notice and consent registers
• Data security incident logs
• Product safety and quality records
• Community engagement records

• Consent retention inconsistent
• Breach notification timelines missed
• Quality issues not root-caused
• Accessibility considerations absent

Ethical selling and labeling practices, transparent marketing, fair advertising, and product disclosure requirements.

• Privacy notice and consent registers
• Data security incident logs
• Product safety and quality records
• Community engagement records

• Consent retention inconsistent
• Breach notification timelines missed
• Quality issues not root-caused
• Accessibility considerations absent

Identify sustainability related risks and opportunities that could reasonably be expected to affect the entity's prospects, using SASB industry specific standards as the starting point for identification per IFRS S1 paragraph 55.

• Materiality assessment report
• Mapping of SASB industry standards to entity operations
• Stakeholder engagement logs
• Materiality matrix or heatmap
• Internal memo signing off material topics

• Materiality based only on financial impact ignoring impact materiality
• No mapping of SASB industry standards to business units
• Stakeholder input not documented

Define and disclose the short, medium, and long term horizons used to assess sustainability related risks and opportunities, ensuring alignment with strategic planning cycles.

• Documented definitions of short, medium, long term
• Strategic plan timeline showing alignment
• Risk register entries flagged by horizon

• Time horizons not defined or inconsistently applied
• Long term horizon shorter than asset useful lives

Disclose where in the business model and value chain sustainability related risks and opportunities are concentrated, including upstream suppliers and downstream customers.

• Value chain diagram
• Supplier and customer concentration analysis
• Geographic footprint map
• Tier 1 and tier 2 supplier ESG screening logs

• Value chain limited to direct operations
• No identification of upstream or downstream concentrations of climate risk

Describe the effects of sustainability related risks and opportunities on the business model, strategy, and decision making, including resilience over short, medium, and long term horizons.

• Strategic plan referencing material topics
• Scenario analysis outputs
• Capital allocation decisions log
• Resilience assessment

• Strategy statements not linked to financials
• Scenario analysis qualitative only
• Time horizons not defined

Describe the processes used to identify, assess, prioritise, and monitor sustainability related risks and how they are integrated into the overall enterprise risk management.

• ERM integration map
• Sustainability risk taxonomy
• Risk register extract
• Monitoring cadence

• Sustainability risks tracked separately from ERM
• Likelihood and impact rated qualitatively only
• No risk owner assigned

Describe the processes used to identify, assess, prioritize, and monitor sustainability related risks, including the inputs, scenarios, and tools applied.

• Documented sustainability risk methodology
• Scenario analysis report aligned to IFRS S2
• Sustainability risk register
• Heat maps and prioritization criteria

• Methodology not formalized
• Climate scenarios limited to one pathway
• Risks not integrated with enterprise risk management

Demonstrate integration of sustainability and climate risks into the entity's enterprise risk management framework, including consistent rating scales and escalation paths.

• ERM framework document with sustainability section
• Integrated risk taxonomy
• Risk committee minutes showing climate items
• Escalation thresholds and approval matrices

• Climate risks tracked in a separate register from enterprise risks
• Different rating scales used across ERM and ESG