Industry-based disclosures are cost-efficient for companies and useful for investors. Using industry-based disclosure topics and metrics in the SASB Standards enables companies to address a range of sustainability-related risks and opportunities.
IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information provides the basis for achieving a truly global baseline of sustainability disclosure that meets investor needs. You can think of it as an outline: the overarching standard that applies to all sustainability-related risks and opportunities but does not specify what those risks and opportunities are.
To help companies identify their sustainability-related risks and opportunities and provide appropriate disclosures using IFRS S1, companies are required to consider the industry-based SASB Standards for topics beyond climate.
IFRS S2 Climate-related Disclosures provides the details for how to meet investor needs for climate disclosures. It is based on the TCFD Recommendations with industry-specific climate metrics based on the SASB Standards.
To help companies determine which climate metrics to disclose, IFRS S2 includes industry-specific metrics derived from the SASB Standards as accompanying guidance.