Why SASB Materiality Matters
The Sustainability Accounting Standards Board (SASB) takes a fundamentally different approach to materiality compared to other frameworks. Rather than asking companies to determine their own material topics from scratch, SASB provides pre-defined materiality maps for 77 industries across 11 sectors. This industry-specific approach helps companies focus on the ESG issues most likely to affect financial performance.
How the Materiality Map Works
SASB identifies between 5 and 26 disclosure topics per industry, organized under five sustainability dimensions: Environment, Social Capital, Human Capital, Business Model & Innovation, and Leadership & Governance. Each topic is designated as material or not material based on evidence of financial impact within that specific industry.
Sector Examples
- Maritime Transportation: Material topics include GHG Emissions (fuel efficiency, IMO regulations), Air Quality (SOx, NOx, particulate matter), Ecological Impacts (ballast water, hull coatings), Employee Health & Safety, and Business Ethics.
- Healthcare: Material topics focus on Access & Affordability, Drug Safety, Counterfeit Drugs, Energy Management, and Waste Management (particularly hazardous medical waste).
- Real Estate: Energy Management, Water Management, and Climate Change Adaptation dominate, reflecting the sector's significant environmental footprint and physical risk exposure.
- Financial Services: Material topics center on Systemic Risk Management, Integration of ESG Risk Factors, and Transparent Information & Fair Advice for Customers.
Integration with ISSB
SASB standards have been incorporated into the ISSB framework as industry-specific guidance for IFRS S1 and S2. This means that understanding SASB materiality is now essential for companies preparing ISSB-aligned disclosures. Companies should use the SASB materiality map as a starting point and then apply their own assessment to confirm which topics are most relevant to their specific circumstances.
Getting Started
Begin by identifying your primary SASB industry classification and reviewing the associated disclosure topics. Compare these against your current reporting to identify gaps and prioritize data collection efforts on the most financially material topics for your sector.