Which organization defines sustainability accounting standards for various industries?

The Sustainability Accounting Standards Board (SASB) is the organization specifically responsible for defining sustainability accounting standards tailored for various industries. SASB’s focus is on creating standards that facilitate the disclosure of financially material sustainability information to investors, which helps investors understand the sustainability performance and risks of companies across different sectors.

This organization establishes industry-specific standards that assist companies in reporting on sustainability-related issues that are most pertinent to their financial performance. By concentrating on the unique characteristics and challenges of different industries, SASB aims to enhance transparency and comparability in sustainability reporting.

While the Global Reporting Initiative and the International Financial Reporting Standards play important roles in broader aspects of reporting and sustainability, SASB is distinct in its emphasis on materiality specifically for investors and sectors. The Environmental Protection Agency, meanwhile, is primarily focused on regulations and compliance related to environmental protection rather than on establishing accounting standards.