The Sustainability Accounting Standards Board has undergone a transformation that few voluntary standards bodies have navigated at this speed or scale. Originally founded in 2011 as a US nonprofit to develop industry-specific sustainability disclosure standards for capital markets, SASB spent its early years building a framework that corporate reporting teams used selectively, and investors relied on unevenly. That picture has changed fundamentally. Following its consolidation into the IFRS Foundation in 2022, SASB standards are now the core industry-specific foundation of the globally recognised IFRS Sustainability Disclosure Standards, and the roadmap from here points toward mandatory adoption across jurisdictions representing the majority of global capital markets.
This article sets out where the Sustainability Accounting Standards Board stands today, what the integration into the IFRS Foundation and the International Sustainability Standards Board means in practice, how the standard-setting roadmap is evolving, and what organisations need to understand to stay ahead of what is coming.
What the Sustainability Accounting Standards Board is and why it matters
SASB standards were built on a single premise: that sustainability disclosures should be material, industry-specific, and directly relevant to investors making financial decisions. Unlike broader ESG frameworks that prioritise stakeholder impact, SASB focused from the outset on financial materiality. That distinction matters because it shaped how the standards were designed and how they are now being used within the IFRS framework.
SASB developed 77 industry-specific standards across 11 sectors, covering topics from greenhouse gas emissions and water management to employee health and safety, product quality, and supply chain risk. Each standard identifies the sustainability topics most likely to affect financial condition and operating performance for companies within a specific industry. A mining company and a software firm face fundamentally different material sustainability risks. SASB standards codify that distinction with precision that cross-sector frameworks cannot replicate.
The Value Reporting Foundation, formed through the merger of SASB and the International Integrated Reporting Council in 2021, was itself consolidated into the IFRS Foundation in August 2022. At that point, governance and stewardship of the Sustainability Accounting Standards Board standards transferred to the International Sustainability Standards Board. SASB had moved from a US-based voluntary initiative to a component of the global standard-setting architecture.
Full integration into the IFRS Foundation and the ISSB: what it means in practice
The integration of SASB standards into the ISSB framework is not cosmetic. Under IFRS S1, the general requirements standard for sustainability-related financial disclosures, companies applying ISSB standards are explicitly required to refer to and consider the applicability of SASB standards when identifying and disclosing sustainability-related risks and opportunities. SASB functions as the industry-specific implementation layer for the ISSB’s principle-based framework.
IFRS S1 and IFRS S2, the two inaugural IFRS Sustainability Disclosure Standards published in June 2023, establish the overarching governance, strategy, risk management, and metrics architecture for sustainability reporting. SASB standards provide the sector-specific content that makes those disclosures decision-useful for investors analysing companies within individual industries. The two levels operate in combination, not in competition.
This integration has practical consequences for companies. Organisations applying ISSB standards need to understand which SASB standard corresponds to their primary business activity, assess which metrics and disclosure topics within that standard are material to their operations, and integrate that analysis into their IFRS S1-aligned reporting process. The requirement is not mechanical box-ticking. It demands genuine engagement with industry-specific sustainability risks that the ISSB’s principle-based requirements alone do not prescribe.
For investors, the integration means that IFRS Sustainability Disclosure Standards now carry the industry-specific rigour that SASB developed over a decade. Comparability within sectors becomes more achievable. The information gap between a company that disclosed against SASB voluntarily and one that did not begins to close as ISSB adoption becomes mandatory across jurisdictions.
The roadmap: how SASB standards are being enhanced and what comes next
The ISSB’s 2024 to 2026 work plan places the enhancement of SASB standards as a central priority. The ambition is to modernise the standards, align their language and concepts with IFRS S1 and IFRS S2, improve their applicability in international contexts, including emerging markets, and strengthen interoperability with other frameworks, including the Global Reporting Initiative and the Taskforce on Nature-related Financial Disclosures.
In July 2025, the ISSB published two exposure drafts proposing amendments to the SASB standards, presenting a comprehensive review of nine prioritised industries across the Extractives and Minerals Processing sector and the Processed Foods industry. The exposure drafts also proposed alignment of metrics across a further 41 industries on topics including water management and workforce health and safety. The comment period closed on 30 November 2025, and the ISSB is analysing stakeholder feedback with the objective of finalising and issuing the amendments in 2026.
In March 2026, the ISSB published a further exposure draft proposing amendments to three additional SASB standards: Electric Utilities and Power Generators, Agricultural Products, and Meat, Poultry and Dairy. These follow the July 2025 proposals and reflect the ISSB’s phased approach to reviewing all 77 industry standards. The comment period for this second consultation runs to 24 July 2026.
Once finalised, the enhancements are expected to come into effect 12 to 18 months after publication, with early adoption permitted. The sequencing matters: companies in the extractives, energy, food and beverage, and broader industrial sectors should be reviewing the proposed changes now, assessing their implications for current disclosure practices, and engaging with the consultation process if they have material views on the proposals.
Key elements of the SASB enhancement roadmap
Language and concept alignment with IFRS S1 and S2
Existing SASB metrics and disclosure topics are being updated to use consistent terminology with the IFRS framework, reducing friction for companies applying both simultaneously.
Biodiversity, ecosystems, and human capital
The ISSB is amending disclosure topics and metrics related to biodiversity and human capital across a range of industries, reflecting growing investor demand and the ISSB’s own research in these areas.
International applicability
Metrics designed primarily for the US market are being adapted to reflect value chains and operating conditions in emerging markets and developing economies, broadening the practical relevance of SASB standards globally.
Interoperability with GRI and TNFD
The enhancements are designed to reduce duplication for companies reporting across multiple frameworks, enabling data collected for SASB and ISSB compliance to satisfy GRI and TNFD requirements with reduced incremental effort.
European sector standards gap
With sector-specific European Sustainability Reporting Standards no longer under development under the EU’s Omnibus simplification package, SASB standards are positioned to fill the sector-specific gap for European companies alongside IFRS S1 and S2. KPMG has noted that with European sector standards no longer in development, the SASB standards have the potential to become authoritative in their own right, whether mandated or not.
Global adoption: where ISSB and SASB standards stand in 2026
The pace of ISSB adoption has exceeded most forecasts from 2023. As of April 2026, 28 jurisdictions have adopted the IFRS Sustainability Disclosure Standards on a voluntary or mandatory basis, with a further 12 jurisdictions actively planning adoption. Jurisdictions progressing toward adoption collectively represent over 60% of global GDP, according to ISSB Chair Emmanuel Faber.
Mandatory adoption came into effect at the start of 2026 in Chile, Qatar, and Mexico. Brazil’s mandatory requirements for listed companies began with fiscal year 2026 data. Australia has commenced reporting under ISSB-aligned standards. Malaysia’s phased mandatory requirements are underway for listed companies. Hong Kong Stock Exchange reporting on a comply-or-explain basis commenced in 2025, with full mandatory reporting based on IFRS S2 from 2026.
The United Kingdom opened a consultation in January 2026 on aligning corporate climate disclosures with ISSB standards, with mandatory rules anticipated from January 2027. Japan’s Sustainability Standards Board has developed ISSB-aligned exposure drafts for eventual mandatory adoption by Prime Market-listed companies. South Korea has confirmed mandatory sustainability reporting under ISSB-aligned Korean standards for large companies from fiscal year 2026.
The IFRS Foundation’s 2025 Annual Report confirmed that the organisation is committed to continued enhancement of SASB standards as an integral part of supporting global implementation of IFRS Sustainability Disclosure Standards. The Foundation has also signalled that nature-related disclosures will form the next major standard-setting project, drawing on the TNFD framework to develop requirements that complement IFRS S1 and S2.
A practical example: what SASB integration looks like for a listed industrial company
Consider a European mid-cap mining company preparing its first ISSB-aligned sustainability report for fiscal year 2026. The company applies IFRS S1 for general sustainability disclosures and IFRS S2 for climate-related information. Under IFRS S1, the company is required to refer to and consider the SASB Metals and Mining standard as the relevant industry-specific guidance.
The SASB Metals and Mining standard identifies greenhouse gas emissions, energy management, water management, waste and hazardous materials management, and workforce health and safety as the sustainability topics most likely to be financially material for companies in this industry. The company must assess which of these topics are material to its specific operations, disclose relevant metrics where material, and explain its governance, strategy, and risk management approach for each material topic.
The SASB standard does not replace IFRS S1 or S2. It operationalises them. Without the industry-specific layer that SASB standards provide, the company would need to determine materiality from first principles across an open-ended set of sustainability topics. The SASB standard narrows that determination to the topics most likely to be relevant, informed by a decade of engagement with investors and companies in the sector.
For the company’s investors, the result is disclosure that is structured, comparable to peers in the same industry, and grounded in the financial materiality framework they use for investment analysis. The integration of SASB standards into the IFRS framework is what makes that comparability achievable at scale.
EnableGreen view and analysis
By Hayatte Loukili, Executive Search Director and Energy Transition Market Expert, EnableGreen
The consolidation of the Sustainability Accounting Standards Board into the ISSB is one of the most consequential structural changes in the history of sustainability reporting. It moves industry-specific ESG disclosure from the domain of voluntary frameworks, adopted selectively by companies seeking investor credibility, into the architecture of global financial regulation. The implications for organisations, and for the professionals who manage sustainability functions within them, are significant.
What we observe at EnableGreen is that most organisations are at an early stage in understanding what ISSB adoption in their jurisdiction actually requires of them in practice. The high-level awareness of IFRS S1 and S2 is relatively widespread. The operational understanding of how SASB standards function as the industry-specific implementation layer, and what that means for data collection, materiality assessment, and disclosure quality, is considerably less developed.
The talent implications are direct. Companies need professionals who understand the relationship between IFRS S1, IFRS S2, and SASB standards at a technical level, who can translate that understanding into practical reporting workflows, and who can communicate the results credibly to audit committees, boards, and investors. That profile is in short supply across every market we operate in.
“The SASB integration into the IFRS framework is not an administrative consolidation. It is the moment when industry-specific sustainability disclosure becomes part of the same accountability infrastructure as financial reporting. The organisations that understand this earliest, and build the internal capability to execute against it, will be best positioned as mandatory adoption accelerates globally. Those that treat it as a compliance exercise rather than a strategic capability will find themselves behind on data quality, comparability, and investor credibility at precisely the moment when the market is demanding all three.”
At EnableGreen, we work with organisations across the energy transition and broader sustainability landscape to build the specialist teams that can execute against evolving disclosure requirements. If you are building or scaling a sustainability reporting or ESG function, explore our current opportunities or contact us directly.
FAQ
What is the Sustainability Accounting Standards Board and what does it do?
The Sustainability Accounting Standards Board developed 77 industry-specific standards identifying the sustainability topics most likely to be financially material for companies across 11 sectors. Originally an independent US nonprofit, SASB is now governed by the ISSB under the IFRS Foundation following its consolidation in 2022. Its standards serve as the industry-specific implementation layer for the IFRS Sustainability Disclosure Standards.
How do SASB standards relate to IFRS S1 and IFRS S2?
Under IFRS S1, companies applying ISSB standards are required to refer to and consider the applicability of SASB standards when identifying and disclosing sustainability-related risks and opportunities. IFRS S1 establishes the overarching disclosure framework. SASB standards provide the sector-specific content and metrics that make those disclosures decision-useful for investors analysing companies within particular industries.
Which industries are covered by the current SASB enhancement programme?
The ISSB’s 2024 to 2026 enhancement programme has initially prioritised nine industries in the Extractives and Minerals Processing sector, the Processed Foods industry, Electric Utilities and Power Generators, Agricultural Products, and Meat, Poultry and Dairy. The programme also includes targeted updates to metrics across a further 41 industries on topics including water management and workforce health and safety.
Which jurisdictions have adopted ISSB standards and made SASB relevant on a mandatory basis?
As of April 2026, 28 jurisdictions have adopted IFRS Sustainability Disclosure Standards on a voluntary or mandatory basis. Mandatory adoption is in effect in Chile, Qatar, Mexico, Brazil (for listed companies from FY 2026), Australia, Malaysia, and several others. The UK, Japan, and South Korea are on defined pathways toward mandatory adoption. As jurisdictions mandate ISSB standards, SASB standards become an integral component of mandatory disclosure requirements in those markets.
What skills are needed to implement SASB and ISSB standards effectively?
Effective implementation requires professionals with technical knowledge of both the IFRS Sustainability Disclosure Standards and the relevant industry-specific SASB standard, the ability to conduct robust materiality assessments, experience in sustainability data management and reporting workflows, and the credibility to engage with audit committees, external assurance providers, and investors. For support building this capability, visit EnableGreen.
Sources and references
IFRS Foundation, ISSB Comprehensive Review of SASB Standards (July 2025)
IFRS Foundation, Proposed Amendments to SASB Standards Exposure Draft (March 2026)
IFRS Foundation, 2025 Annual Report: Fit for the Future (March 2026)
IFRS Foundation, ISSB Update October 2025
S&P Global Sustainable1, Where does the world stand on ISSB adoption? (May 2026)
KPMG, Enhancing the SASB Standards (April 2026)
Deloitte IASPlus, Adoption of IFRS Sustainability Disclosure Standards by jurisdiction (June 2026)
ISS-Corporate, Global Interest in ISSB Standards Rises (November 2025)
Harvard Law School Forum, 2025 Sustainability Reporting: Global Trends in Framework Adoption
