She Sells Sea Shells by the Sea Shore… SASB, ISSB, IFRS S1 and S2: So Many S’s, So Little Sense? Let’s Break It Down

Already using the SASB Standards? Wondering how they relate to the new ISSB framework? You’re not alone. With a wave of acronyms rolling in - ISSB, SASB, IFRS S1, S2 - it’s easy to feel like sustainability reporting has become a tongue-twister. But beneath the surface, there is a clear structure. Understanding it can give your business a smarter, more strategic reporting pathway.

Let’s start with the basics.

What Is the SASB and Why Does It Matter?

The Sustainability Accounting Standards Board (SASB) developed 77 industry-specific standards that help companies disclose financially material sustainability information to investors.  

The idea is simple: different industries face different risks and opportunities. A mining company will have very different material concerns than a bank or a software firm.

Over 3,500 companies across more than 80 countries already use the SASB, including 75 percent of the S&P Global 1200 Index.  

Enter the ISSB

In 2022, the SASB Standards were officially consolidated into the newly formed International Sustainability Standards Board (ISSB), created by the IFRS Foundation (try saying that five times fast). This move brought SASB under the same roof as the IFRS global financial reporting standards, effectively upgrading it from a popular framework to a crucial part of an international reporting system.

Convinced? If you want a reporting platform that already includes the full SASB library and helps you align with both IFRS S1 and S2, diginexESG makes it easy.

So How Do They Interact?

One of two published ISSB standards, IFRS S1 is the general requirements standard. It tells companies to disclose all sustainability-related risks and opportunities that could reasonably affect their financial outlook. However, it does not tell you what those issues are. That is intentional. S1 is industry-agnostic and based on outcomes, not inputs.

Here's where SASB helps. The ISSB explicitly tells companies to refer to the SASB Standards to identify and report on the issues that are most relevant to their sector for all issues NOT related to Climate (more on this later)!

In other words:

• IFRS S1 says, “Tell us what matters and how it affects your business.”

• SASB says, “Here’s your industry playbook to help you answer that.”

What About Climate?

IFRS S2 is the climate-specific standard. It provides more detailed guidance for disclosing climate-related risks, governance, strategy, metrics, and targets. The IFRS S2 already includes industry specific guidance for climate-related metrics – derived from the SASB.  

What Does This Mean for Your Business?

If you’re already reporting with SASB, you’re ahead of the curve. The ISSB has essentially folded SASB into its framework. That means:

• Your existing reports can help you comply with IFRS S1.

• You don’t need to throw out your current process.

• You can upgrade what you have to meet investor and regulatory expectations with minimal friction.

If you’re keen to make that shift without the headache, diginexESG gives you all the tools to produce ISSB-aligned reports, with an intuitive platform that supports you every step of the way.

A Tongue Twister Still, A Brain-Teaser No Longer

Yes, it’s a sea of S’s… SASB, S1, S2, ISSB.  but there is sense beneath the surface. IFRS S1 is the skeleton. SASB is the muscle, giving you the strength and structure to produce clear, consistent, investor-relevant disclosures. IFRS S2 puts the spotlight on climate, which is increasingly the most urgent risk across industries.

Whether you are just starting out or refining a mature sustainability strategy, understanding how these standards work together is essential. diginexESG helps you turn alphabet soup into actionable, auditable reports. Don’t get tongue-tied. Get a leg up!

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