Sustainable Accounting Standards Board

Sustainability Accounting Standards Board From Wikipedia, the free encyclopedia Jump to navigationJump to search Sustainability Accounting Standards Board Founded July 2011 Focus Sustainability accounting standards Location Pier 3, The Embarcadero, San Francisco, CA 94111, United States Website sasb.org The Sustainability Accounting Standards Board was founded in 2011 to develop and disseminate sustainability accounting standards. While the FASB has for the past forty years developed the accounting principles currently used in financial reporting in the United States, other social and environmental measures are now understood to be of relevance. The SASB aims to integrate its standards into the Form 10-K which must be filed by public companies with the U.S. Securities and Exchange Commission; in this sense it differs from initiatives such as the GRI, by working within the current system of financial regulation.[1] The general principle is, in Peter Drucker's phrase, "what gets measured gets managed".[2] SASB appointed in 2014 former NYC Mayor Michael Bloomberg as Chair and former SEC Chair Mary Schapiro as Vice Chair.[3] Contents 1 Industry specific 2 SASB IAG Members 3 Financing 4 See also 5 References 6 External links Industry specific[edit] The SASB aims to meet the need for industry-specific reporting standards, to ease comparison and benchmarking.[1][4] In order to do so, a Sustainable Industry Classification System covering ten sectors and 80+ industries has been devised. From Q4 2012, industry-specific working groups are to convene to pursue the goal of completing the standards within two and a half years.[5][6] Key performance indicators will then be updated annually.[1][7] There is recognition that establishing what is material in information that is fundamentally non-financial is complex.[4][8] SASB IAG Members[edit] Investors increasingly acknowledge that environmental, social and governance (ESG) factors can impact a company’s ability to manage risk and deliver financial performance over the long-term. As such, many investors use ESG information to develop a comprehensive view of company performance and to help evaluate a company’s long-term value. Investors can play an important role in enhancing disclosure effectiveness by expecting companies to disclose performance on material ESG factors and by participating in the development of disclosure standards. Accordingly, SASB has created an Investor Advisory Group (IAG). The IAG comprises leading asset owners and asset managers who are committed to improving the quality and comparability of sustainability-related disclosure to investors, and represent a combined total of more than $21 trillion USD assets under management (AUM). The following entities have agreed to become founding members of SASB's IAG as of March 2018: Aberdeen Standard Investments APG Asset Management Bank of America Merrill Lynch BC Investment Management Corp. BlackRock Inc Breckinridge Capital Advisors California State Teachers' Retirement System (CalSTRS) California Public Employees' Retirement System (CalPERS) Calvert/ Eaton Vance Capital Group International Domini Impact Investments, LLC Goldman Sachs Asset Management Co., Ltd. Jarislowsky Fraser Ltd Morgan Stanley Investment Management New York City Employees' Retirement System Nordea Asset Management Northern Trust Corp Ontario Teachers' Pension Plan (OTPP) Oregon State Treasurer (OST) Perella Weinberg Partners PGGM Investments PIMCO QMA State Street Global Advisors Sustainable Insight Capital Management (SICM) TIAA Global Asset Management UAW Retiree Medical Benefits Trust UBS Asset Management Vanguard Group Walden Asset Management Wells Fargo & Co Wespath Investment Management Financing[edit] During development SASB is to be funded by grants and donations, with the aim to be self-financing thereafter through intellectual property licensing, education and training.[6] Backers include Bloomberg Philanthropies and the Rockefeller Foundation.[1] See also[edit] Natural capital Environmental Profit and Loss Account References[edit] ^ Jump up to: a b c d Scott, Mike (24 June 2012). "US companies urged to put natural capital in accounts". Financial Times. Retrieved 7 August 2012. ^ Crooks, Ed (17 June 2012). "Calls for corporate disclosure of social impact". Financial Times. Retrieved 7 August 2012. ^ Wenzel, Else. "Finance powerhouses Michael Bloomberg and Mary Schapiro to lead SASB". ^ Jump up to: a b Eccles, Robert G. (et al.) (2012). "The Need for Sector-Specific Materiality and Sustainability Reporting Standards" (PDF). Journal of Applied Corporate Finance. Wiley-Blackwell/Morgan Stanley. 24 (2): 8–14. ^ "US Sustainability Accounting Standards Board created". Deloitte. 5 July 2012. Retrieved 7 August 2012. ^ Jump up to: a b "SASB - FAQ". SASB. Retrieved 7 August 2012. ^ "The Sustainability Accounting Standards Board" (PDF). SASB. Retrieved 7 August 2012. ^ "Standards for Disclosure". Ceres. Retrieved 7 August 2012. External links[edit] SASB homepage