SASB Conceptual Framework and Rules of Procedure Issued
This week, the Sustainability Accounting Standards Board (“SASB”) published governance documents for its final Rules of Procedure and Conceptual Framework. The governance documents establish principles and processes of the board’s approach to the development of its standards.
After reviewing feedback from a 90-day comment period early last year, the SASB included the following changes:
- Independent governance. The SASB will adopt a two-tiered governance model that separates financial responsibilities from standards-setting activities. The SASB Foundation will handle finances and governance, and assign standards-setting efforts to a newly appointed SASB technical board. The existing SASB Board of Directors will become the SASB Foundation Trustees, and will add members to the SASB technical board this April.
- American National Standards Institute process to expert-led process. The development of SASB standards will now be the responsibility of the SASB technical board, through an expert-led process.
- Composition of standards-setting body. The SASB will now include experts with standards-setting, financial reporting, or sustainability domain experience, but seats will not be designated. Sector Advisory Groups will provide industry expertise by advising on industry and emerging matters.
The SASB is currently engaged in a deep consultation on the standards before they are finalized during fourth quarter 2017. Issuers and investors are recommended to submit feedback by Saturday, April 1.