SASB's Conceptual Framework

• SASB’s first provisional standard was published in 2013, with additional provisional standards released through 2016.

• A codified update to all the Standards was published in 2018. Two key governance documents— the Conceptual Framework and Rules of Procedure—guided each iteration of the SASB Standards; both documents are available on the SASB website.

• As SASB continues its standard-setting work, with the first new standard-setting projects approved in 2019, it will continue to rely on its governance documents to ensure consistency and adhere to due process, and continue to build trust in the Standards.

• The Conceptual Framework serves three purposes:

1. It guides board members and staff who oversee and implement standard-setting activities.

2. It helps stakeholders better understand SASB’s approach to standard-setting.

3. It helps to improve board member and staff engagement and consultation with stakeholders by providing a common language for communication.

Structure

1. Objectives : 1)Financially material, 2)decision useful, 3) Cost effective

2. The SASB Standards

3. Topic Characteristics : 1)Financially impactful, 2)Of Interest to users, 3) Prevalent, 4) Actionable

4. Metric Characteristics : 1) Representationally faithful, 2) Complete, 3) Comparable, 4) Neutral, 5) Verifiable, 6) Aligned, 7) Understandable

5. Fundamental Tenets of SASB's Approach: 1) Evidence Based, 2)Market Based, 3) Industry-specific, 4)Transparent

Source:

Conceptual Framework - SASB

PCP-package_vF.pdf (sasb.org)