IFRS S1/S2 Tells You What to Report — SASB Shows You How
The IFRS S1 and S2 standards published by the ISSB (International Sustainability Standards Board) establish a global baseline for sustainability disclosure. However, these standards are principles-based — they say "disclose sustainability-related risks and opportunities" but do not detail specifically what needs to be measured for each sector.
This is exactly the gap that SASB (Sustainability Accounting Standards Board) fills. With the IFRS Foundation's incorporation of SASB in 2022, industry-based metrics developed for 77 sectors are now an integral part of the ISSB framework (IFRS Foundation, 2022). Appendix B of IFRS S1 explicitly recommends that companies reference SASB standards when determining sector-specific disclosure requirements (IFRS S1, Appendix B).
This carries concrete meaning for Turkish companies: if you are reporting under TSRS — which is developed directly on the basis of IFRS S1 and S2 — SASB sector metrics are the critical reference that determines the depth and comparability of your reporting.
Understanding SASB's Structure: 77 Sectors, 26 Material Topics
SASB defines material sustainability topics and measurable metrics for 11 main sectors and 77 sub-industries. Each sector standard includes three components:
- Disclosure Topics: Financially material sustainability issues for the sector
- Accounting Metrics: Quantitative and qualitative disclosure requirements — each identified by a unique code
- Technical Protocols: Calculation methodology, data definition, and boundary rules for each metric
SASB's total 26 material topic categories are grouped under five dimensions (SASB Standards, 2023):
| Dimension | Material Topic Examples |
|---|---|
| Environment | GHG emissions, air quality, energy management, water and waste management, ecological impacts |
| Social capital | Human rights and community relations, customer privacy, data security, access and affordability |
| Human capital | Occupational health and safety, employee engagement, diversity and inclusion |
| Business model and innovation | Product design and lifecycle management, material sourcing and efficiency, physical climate impacts |
| Leadership and governance | Business ethics, anti-competitive practices, regulatory proximity, critical incident risk management |
The critical point: only 3-7 material topics are defined for each sector. SASB does not say "report everything" — it focuses on the most financially significant topics for each sector. This focus is the foundation of SASB's practical value.
Relationship with IFRS S1/S2: How They Work Together
ISSB standards provide the general framework while SASB standards provide sectoral detail. The relationship is complementary, not contradictory:
| Dimension | IFRS S1/S2 | SASB |
|---|---|---|
| Scope | All sectors, principles-based | 77 sector-specific, metrics-based |
| Purpose | "What should you disclose?" | "How should you measure and report?" |
| Mandatory | Varies by jurisdiction (mandatory in Turkey via TSRS) | Recommended as reference by ISSB |
| Metric detail | General (Scope 1/2/3, energy, targets) | Sector-specific KPIs (e.g., water intensity/tonne, lost-time incident rate) |
With a practical example: IFRS S2 says "report your GHG emissions." SASB specifically defines "CO2 emissions per clinker production (tCO2/tonne clinker)" for the cement sector. The first tells you what to report; the second tells you in what format and unit.
IOSCO's (International Organization of Securities Commissions) formal endorsement in 2023 supports the implementation of ISSB standards alongside SASB sector metrics (IOSCO, 2023). This endorsement is the strongest indicator that SASB metrics have become a globally accepted reference.
SASB Metrics for Turkish Sectors: Practical Examples
Energy and Infrastructure (Electric Utilities)
SASB's electric utilities sector standard (IF-EU) defines these specific metrics for climate disclosures:
| Metric | SASB Code | Unit | Description |
|---|---|---|---|
| GHG emission intensity | IF-EU-110a.1 | tCO2e/MWh | Total emissions per unit of production |
| Fuel mix | IF-EU-000.D | % | Coal, natural gas, renewable, nuclear shares |
| Water withdrawal | IF-EU-140a.1 | m³ | Total water withdrawal and consumption |
| Ash and waste management | IF-EU-150a.1 | tonnes | Disposal of production wastes |
For Turkey's energy sector, these metrics are directly applicable. Emission intensity (tCO2e/MWh) in particular is the clearest way to measure the impact of the renewable energy transition.
Banking and Finance
SASB's commercial banking standard (FN-CB) offers a different focus from a sustainability perspective:
| Metric | SASB Code | Unit | Description |
|---|---|---|---|
| Financed emissions | — (complementary with PCAF) | tCO2e | Portfolio carbon footprint |
| Data security incidents | FN-CB-230a.1 | Count | Number of information security breaches |
| Financial inclusion | FN-CB-240a.1 | % | Branch density in underserved areas |
| Climate credit risk | FN-CB-410a.1 | USD | Climate-risk-exposed lending portfolio |
For Turkish banks, financed emissions (via PCAF methodology) and climate-exposed credit portfolio are the most critical metrics. BRSA's sustainable banking expectations also align with these metrics.
Manufacturing: Steel
SASB's iron and steel production standard (EM-IS):
| Metric | SASB Code | Unit | Description |
|---|---|---|---|
| GHG emission intensity | EM-IS-110a.1 | tCO2e/tonne steel | Emissions per unit of production |
| Energy management | EM-IS-130a.1 | GJ/tonne steel | Energy intensity |
| Water recycling rate | EM-IS-140a.1 | % | Recycling share of total water consumption |
| OHS incident rate | EM-IS-320a.1 | Rate | Lost-time incident frequency |
The EAF-dominated structure of Turkey's steel sector enables below-global-average performance on the emission intensity metric. When reported using SASB metrics, this advantage provides concrete comparison opportunities for international investors.
Food and Agriculture
SASB's food production standard (FB-PF):
| Metric | SASB Code | Unit | Description |
|---|---|---|---|
| Water intensity | FB-PF-140a.1 | m³/tonne product | Water consumption per unit of production |
| Food safety recalls | FB-PF-250a.1 | Count / revenue impact | Product recalls due to food safety |
| Supply chain environmental impact | FB-PF-430a.1 | % | Third-party certified raw material ratio |
| Packaging lifecycle | FB-PF-410a.1 | tonnes / % | Recyclable packaging ratio |
For Turkish food-exporting companies, water intensity and supply chain certification metrics directly overlap with data that EU customers will request under CSRD.
SICS: SASB's Sector Classification System
SASB uses its own sector classification system (SICS — Sustainable Industry Classification System). SICS groups companies by their sustainability impacts — this differs from traditional revenue-based sector classifications.
For example, an automotive manufacturer falls under "Automobiles" (TR-AU) in SICS, while automotive parts suppliers may receive a different classification. Identifying the correct SICS code is the first step to applying the right SASB standard.
The SICS classification tool (SASB Standards Viewer), freely accessible on the IFRS Foundation website, enables companies to find their sector codes.
Enriching TSRS Reporting with SASB
Three pragmatic reasons for Turkish companies to enrich their TSRS-compliant reporting with SASB metrics:
1. International investor expectations. Global institutional investors (BlackRock, Vanguard, Norges Bank, etc.) expect SASB-aligned disclosures from portfolio companies. SASB metrics are a critical signal for Turkish companies seeking to attract foreign investment.
2. Comparability. SASB's sector-based standardized metrics enable direct comparison of companies across different countries. When a Turkish steel producer presents its emission intensity metric in the same format as a German or South Korean competitor, it facilitates investor analytics.
3. CDP alignment. The CDP climate change questionnaire references SASB metrics in many of its questions. Companies that already collect SASB metrics can complete the CDP questionnaire more easily and at higher quality (CDP, 2024).
Implementation Roadmap
Step 1: Identify Your SICS Code
Find your company's sector code using SASB's SICS classification system. If you operate in multiple areas, select the primary sector by revenue weighting.
Step 2: Review Material Topics
Evaluate the 3-7 material topics defined for your sector. Compare the financial materiality of each against TSRS's materiality assessment.
Step 3: Map Existing Data
Determine which data you already collect that satisfies SASB metrics. Most companies discover that a significant portion of their existing environmental data can be converted to SASB format.
Step 4: Close Gaps
Design data collection processes for missing metrics. Prioritize metrics with the highest financial impact.
Step 5: Reporting Integration
Integrate SASB metrics into your TSRS report. Since IFRS S1 Appendix B recommends SASB metrics as sector-specific references, this integration occurs naturally and compatibly.
Frequently Asked Questions
Is SASB reporting mandatory?
Not on its own. However, since IFRS S1 Appendix B recommends SASB as a reference and TSRS is developed on the basis of IFRS S1, SASB serves as the de facto reference for determining sector-specific metrics under TSRS. Additionally, many international investors and rating agencies expect SASB disclosures.
What should I do if my company operates in multiple sectors?
Apply the relevant SASB sector standard for each significant business area. You can prioritize by revenue, asset, or emissions share.
Is there a conflict between SASB and ESRS (CSRD)?
No. ESRS offers a broader framework (double materiality, including social and governance), while SASB provides sector-specific depth. The two are complementary. EFRAG ensured alignment with SASB metrics when developing ESRS.
Action Item: SASB metrics are the most effective tool for differentiating your TSRS reporting in investors' eyes. Identify your sector code and review the material topics list — in most cases, a significant portion of data you already collect can be converted to SASB format.
See how enterprise teams align their reporting with ISSB standards.